You are planning to buy a new home. There are many issues that bother you at this point of time and the major one is finance. With markets full of options for home loans, there are many things to be considered while choosing a particular home loan program. We will go through the necessary steps to get home loan: some before you apply for it and some after you apply for it.

Steps to get home loan # 1
Maintain your credit records: Good credit track record will help you a long way in getting your home loan approved smoothly and quickly. So pay all your bills and takes on time every time, especially in the year before applying and during the period when your application is being processed. Pay down your credit card balances as it will reduce your liability and increase your credit score.

Steps to get home loan  # 2
Get Pre-qualified for a home loan: Getting pre-qualified for a home loan is a good idea because it gives you an idea how much you can borrow. You can get pre-qualified for free from any major lending institutions. It can even be done over phone.

Steps to get home loan # 3
Organize all your paperwork and decide on a budget: Keep all your financial documents handy. These documents would include copies of your bank account statements, income tax returns, pay slips, recent credit card statements, and divorce decree and child support documents. Organizing these documents would also help you have an idea about your financial status and budget. The maximum limit of home loan that the organization will provide will be different to the limit that you can afford.

Steps to get a home loan # 4
Get a guarantor:  Though all organizations do not ask for guarantor, it always works to your advantage to have one. This also increases your credibility and chance to approval of a higher amount.

Steps to get home loan # 5
Apply with all relevant documents: Once you have decided to buy a particular property apply for the home loan. The more complete and accurate your documents, faster will be your home loan process. You can even apply online and the loan agent will get in touch with you.

Steps to get home loan # 6
Processing and Verification: All the documents submitted by you are verified during the processing of your loan. A loan officer might visit your property as well as your current residence to verify your details. Your employment details will also be checked. An appraiser will call you up and visit your property you want to buy, for its valuation.

Steps to get home loan # 7
Loan Sanction:  After all the details provided by you are verified to the satisfaction of the loan officer, a letter of sanction will be issued. This letter containing the amount of home loan and the terms and conditions has to be signed by you.

Step to get home loan # 8
Submission of original property documents: Your title deed will have to be left with the lending company as security for the home loan. You will have to go to the company to sign the loan agreement.

Step to get home loan # 9
Disbursal of the loan amount: You can withdraw the amount of loan as and when required by you as per the stages of construction of your house or payments. Until the whole amount is withdrawn you will be required to pay only the interest on the amount withdrawn. Your Equated Monthly Installments (EMI) will begin only after the loan amount has been withdrawn in full.