- Home loan is sanctioned even before finalizing the property.
- Pay only nominal cost to get pre approved for mortgage/ home loan.
- Instant home loan approvals.
- Maximum validity of 6 months for the pre approval for buying a house.
- Apply for pre approval home loan online from the comfort of your home.
- Instant e-approvals on online home loan applications.
- Pre-approval from multiple lenders possible.
What Is a Pre-Approved Home Loan & What Are Its Benefits?
House loan pre approval means prequalifying for a home loan even before you finalize the property. Pre-approval for a loan is similar to a regular home loan. Also referred to as pre-sanction loan, in-principal approval or in-principal sanction, the pre-approved home loan is provided only on the basis of your repayment capacity which is determined by your financial position & income, income stability and through your creditworthiness. Your creditworthiness is verified by pulling out your CIBIL report. (Click to know how your multiple home loan inquiries has an impact on your CIBIL scores.) To prequalify for home loan, you are required to submit the mandatory documents i.e. your KYC, financial documents and login fees to the lender Banks/NBFCs/HFCs. Similar to regular home loans, processing fee is also applicable for pre-approved home loans as well. The lender Banks/NBFCs/HFCs initially charge you with a nominal processing fee also referred to as login-fee, which is then adjusted from the final home loan processing fees at the time of disbursement.
You can get pre approved for a home loan for the following:
- First time home buyer pre approval.
- Home loan pre approval for second home.
- Home loan pre approval for new construction of house. (Click to read – Difference between home loan and land loan.)
- Home loan refinance pre approval. (Read- Things to know before applying for a refinance)
- Home equity loan pre approval.
- Pre approval for land purchase for constructing a home. (Read- Everything you must know before purchasing a land & availing the land loans.)
- Mortgage loan pre approval.
- Joint mortgage pre approval.
Details Of Home Pre Approval Loan
Meaning Of Home Loan Approval In-Principal: Home loan in-principal approval means getting prequalified for a home loan even when you have not finalized the property.
Pre Approved Home Loan Validity: Lender Pre Approval validity varies between the lender Banks/NBFCs/HFCs. The home purchase pre approval letter comes with a limited period of validity, generally from 3 months to 6 months within which you are supposed to finalize the property. (Read: Why Home Loan Interest Rates Of NBFCs Higher Than Banks)
Even if you fail to finalize within the validity period, no worries, Loanfasttrack will help you to reappraise the home loan with no extra or nominal cost. To know more how? – speak to our experts on 9321020476.
Home Loan Pre Approval Time Frame: Pre approval home loan time frame i.e. the turnaround time differs between the lender Banks/NBFCs/HFCs. Physical processing of home loans generally takes 5-7 working days to get preapproved for a loan. Since the recent past, some lenders have started providing the facility of instant home loan approval online by allowing you to make an online mortgage pre approval application. Online processing for getting prequalified for a home loan is the best way to get pre approved for a house loan because it is a convenient, fastest and easiest way and can be applied from anywhere & from the comfort of the home. For example, you can get instant home loan pre approvals just within 8 hours with ICICI Bank’s express home loan product.
Processing Fees For House Pre Approval Loan: Standard Processing fees apply for getting prequalified for a home loan. You can get an in-principal sanction just at a nominal cost of the login fees. However, if you do not finalize the property within the validity period of 6 months the processing fee paid to the lender remains non-refunded. Hence to avoid the chaos the lender initially collects only the login fees and collects the remaining processing fees at the time of disbursement. (A must-read article on- what is the total cost associated to get a home loan.)
|Apply for mortgage pre approval online with HDFC Bank through Loanfasttrack at lowest interest rates and enjoy cashback offers on processing fee*|
Documents Required For Mortgage Pre Approval: Lenders collect the following mandatory documents for validation, which are: –
- KYC: Pan Card, Aadhar Card, Latest Passport size photograph, Office proof & Residence Proof.
- Income Documents Needed For Pre-approval:
|For Salaried||For Self-Employed|
|Income Documents||Latest 4 months Salary Slips. 2 years Form 16||Latest 3 years ITR with Saral Copy, Balance Sheet, P&L Account, Capital Account.|
|Bank Account Statement||6 months.||12 months (savings + current account).|
For a complete document checklist, click on the links.
- Home loan Resale Case – for Salaried, for self-employed – Proprietorship firm, Private Ltd. Company, Partnership Firm.
- Home loan Builder Case – for salaried, for self-employed – Proprietorship firm, Private Ltd. Company, Partnership Firm.
- Home loan balance transfer – for salaried, self-employed – Proprietorship Firm, Private Limited Company, Partnership Firm.
Home Loan Pre Approval Process: Below given is the process to get pre approved for a home loan: –
- For the offline home loan pre approval application.
=> Prepare the documents checklist as mentioned above.
=> Scrutinize & shortlist the lender Bank/NBFC/HFC providing you with the best home loan deal. (Click to get the comparison chart of the best home loan deals of the leading banks.)
=> Submit the duly signed application form along-with the essential set of documents to the lender. You can either visit the lender in person to make the application or make a smart choice by opting for free home loan services of the top banks through Loanfasttrack.
- For home loan pre approval online.
=> Prepare the documents checklist as mentioned above.
=> Visit the official website of the lender Bank/NBFC/HFC or contact Loanfasttrack the official housing loan DMA of the leading banks to get the links.
=> Fill your required mandatory details and upload the documents (KYC & Income Documents).
=> Pay the nominal login fees online.
At times the online process might be confusing, you may face technical errors and troubleshoots might cause problems while loading your loan details. Hence take support & guidance from Loanfasttrack and learn how to apply online for home loan, mortgage loan & loan transfers.
Additional Read: Online Vs Offline Home Loan – Which One Is Better?
How To Apply For best pre approval home loan: Whether online or offline whichever way you prefer, Loanfasttrack will provide you with timely assistance round the clock; simply visit us on: www.loanfasttrack.com or call on 9321020476 or email on email@example.com.
Things Needed For Pre Approval Of Home Loan
- You must have a regular & uninterrupted flow of income.
- You must have a good CIBIL score of above 750. (Click to know how to get pre approved for a home loan with bad credit)
- You must have a stable employment.
- You must have a justifiable & legal source of income.
- You must have a minimum business vintage of at-least 3 years.
- You must possess all the required sets of documents required for getting pre approved for a house loan.
Difference Between Regular Home Loan & Bank Pre Approval Home Loan.
|Regular Home Loan||Home Loan Pre Approval From Bank|
|Processing Fees||Full processing fee collected on the sanctioned loan.||One-time non-refundable login fees. Remaining processing fees to be collected at the time of disbursement.|
|Rate Of Interest||Current prevailing interest rate as on the date of sanction will be applicable.||Current prevailing interest rate as on the date of disbursement will be applicable.|
|Validity||Immediate or maximum 6 months.||3 months – 6 months.|
|Property Legal & Technical||Mandatory.||Not required.|
|Documents Required||KYC, Income Documents & Property Papers.||KYC & Income Documents.|
|Turnaround Time For Disbursement||Delay in home loan sanction delays the disbursement process.||Fasten the disbursement process.|
Benefits Of Pre-approved Home Loans
- Faster Home Loan Disbursement: –
Getting qualified for a home loan even before finalizing the property fasten the home loan disbursement process. The major time and delay (if any) is faced only during the sanction process. Sanction is the main process of scrutinizing your creditworthiness, assessing the funding risk and calculating your home loan eligibility. Hence when you are pre-approved you have already saved on the time which makes your disbursement faster. Pre-approval is therefore useful when you have less time and a shorter transaction window for the process.
- Easy Searching For Your Desired Home: –
Once you know your home loan eligibility after pre approval home loan, searching for your desired dream house within your budget becomes easier. You can therefore plan for your finances, property budget and preferred location for the property. For instance, if you are pre-approved for an amount of Rs.50 lakhs you can plan for the house purchase approximately within 45 lakhs – 55 lakhs.
- Improved Negotiations With Builder/Seller: –
If you have a home mortgage pre approval, you are considered to be a serious buyer. The home loan pre-sanction letter will give you an essential funding power to negotiate with the builder/seller for your favorable deal. Additionally, with the pre-approved power you may also get attractive discounts on the deal due to your ability to make faster payments as compared to other buyers and may also receive preferential treatment over others.
- Helps To Plan Your Finances
With pre-approved home loans, you know your exact home loan eligibility well in advance and therefore can plan accordingly for your house purchase within your budget. You know exact how much you will be funded and how much own contribution i.e. OCR you need to arrange for the house purchase.
- And lastly but important, if you have a pre- approved home loan, you will never miss out a good property deal.
Your final loan terms for interest rate & processing fees will be worked out only at the time of disbursement. Interest rates might change in course of time and you might be benefited from the reduced interest rates and lesser home loan EMIs. (Lender’s interest rates change with a change in the RBI’s repo rate.) You will be charged with the rate of interest prevailing on the disbursement date, even if you have banged the best deal for the home loan terms now. Additionally, you will also be charged with a revised fee structure at the time of disbursement, if the disbursement does not happen within the prescribed period under which you have taken the opportunity to sanction your home loan with a limited period processing fee offer offered by the lender. These terms and conditions will be mentioned on your sanction letter. (Read our previous post on how to read the sanction letter.)
FAQ (Frequently Asked Questions)
Q. How much does it cost to get pre-approved home loans?
Ans: Standard processing fees are applicable to avail the pre-sanction home loan. Initially you pay only a login fee, remaining processing fee is collected at the time of disbursement.
Q. How long is a pre approval letter valid?
Ans: Pre approval letter validity is available for a maximum period of 6 months. With some lenders it is also limited to 3 months.
Q. I want to get pre approved for a home loan? Which is the best bank to get pre approved for a mortgage?
Ans: Click to make your own comparison for the best bank for home loan.
Q. Home loan rejected after pre approval- is it possible?
Ans: The home loan disbursement is subject to your property meets the legal and technical due diligence guidelines of the lender Bank/NBFC/HFC. Home loan denied after pre approval is possible in cases- where your property has no clear and marketable title, the property is not within the approved city limits (as per the funding guidelines of the lenders), the property you are purchasing is a grampanchayat/chawl/pagadi property, the property is not approved from the approved authorities, etc.
Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.
Loanfasttrack’s specialized services includes providing:
- The best bank for home loan.
- Best Banks For Mortgage Loan In India
- Assured low interest rates for loan against property in Mumbai.
- Lowest home loan rates in Mumbai.
- Instant loan in Mumbai.
- Instant personal loan in Mumbai & business loan in Mumbai
- Low cost home loan balance transfer.
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