So you have decided to build your home? I planned to take up a home loan or decided to take up an apartment and planned to take up a home loan.

Apply for home loans with peace of mind that you’ll get 100% approval. How you may ask? Follow the steps in this blog, and it’ll guarantee that your home loan gets approved.

1. Check your Credit Score

A credit score greater than 750, any score lesser will need you to pay high sky interest rates. In some instances, you’ll be able to negotiate some good interest rates.

2. Loan Amount

Calculate the approximate price that you for a Tier -1 city like Bengaluru will a sum of three main factors i.e
a. Real Estate Cost
The range will be ₹4000 – 5000/Sq.ft
b. Construction Cost
The range will be ₹1500 – 2000/Sq.ft
c. Interior Cost
The range will be ₹1500 – 2000/Sq.ft

3. Down Payment

After you know the total amount to build/buy your home, just check you if you can afford the down payment as required by your loan provider. See if you can arrange the cash liquidity for a 10-20% down payment.
For ex. if you are applying for a home loan for a 30 lakh, 3 lakhs to 6 lakhs for liquid cash has to be arranged.

4. Request for quotes from various banks

  1. Use online platforms like Paisa Bazaar etc for quotes
  2. Call your local banks for quotes
  • You’re going to compare quotes from different banks along with the following parameters:
    • Processing fee
    • Interest rate
    • Fixed vs Floating
    • EMI – tenure flexibility
    • Total you’ll end up paying
    • Early repayment fees
    • In fact, the same banks have different loan schemes – the salesperson will push for one where he makes the highest incentive so please do your own research 
    • Ask for Government schemes! Bank representatives don’t pitch government schemes because they don’t have a great incentive on them. You can check out schemes like PMAY if you’re eligible. 
  • Choosing your loan
    • EMI should not be more than 25% of your monthly income
    • Account for early repayment charges
How to get Home Loan 100% Approval? – Step by Step Guide

5. Get your documents ready

  • KYC
    • Passport size
    • Stamp size
  • ID Proof
    • Aadhar Card
    • Pan Card
  • Address Proof
    • Aadhaar
    • Telephone bill
    • Passport
    • Rental Agreement
  • Employment details
    • Payslips
    • Bank statements
    • Offer letter
    • Employment certificate – HR departments may take months together to give you this, so apply and be ready
  • Real estate documents
    • Certificate from builder
    • If you’re constructing, Architectural/ Civil engineering plan – your local architect will do a plan for you for a fairly nominal cost just for approval, if you like him or her and you commit that when your home loan is done, you’ll use his or her services.
  • Quotation from Architects/ Interior designer/ Contractor
  • Architectural or Civil engineer plan
    • Land documents
    • Tax certificates
    • Floor plan
  • Pay your fees – loan processing etc. 
    • Make sure your down payment is ready – You have Liquid cash ( I don’t mean liquid, I mean ready to pay )
  • And Be Patient
    • There will be various verifications.
    • There will be various property verifications etc. etc. 

That’s it.
That’s all you need to know.