Getting the right home loan is as crucial as finding the best house for yourself. Buying a house is a one-time investment, which makes it essential that you select the lender for a home loan very carefully. Besides, the process of availing a home loan has numerous steps; thus, you need to be patient and exercise prudence on each step to make sure that you have the required details and documents.
Applying for a home loan in a nationalized bank like SBI gives you a better chance to get a lower rate of interest as compared to private banks. Nowadays, the loan application process has become fairly easy as you can easily apply for SBI home loan online by filling in the required information. However, after the initial application submission, there are certain formalities for which you need to have the proper documentation.
Here is the step by step procedure for getting SBI home loan:
- Property Documents: The very first step that you need to do is get all the property-related documents and legal documents from the builder. Some of the important documents are share of agreement, sanctioned site plan, booking receipt, and copy of the cheque.
- E-Stamping: To avail of a home loan from SBI, the sales agreement and construction agreement must be e-stamped. For an ongoing construction, two agreements are made, one for sales and another for construction. The technology of e-stamping is new, and it can be done at any post office, Syndicate banks, selected registrar offices, etc.
- Submit Application: Next, you need to fill the application form and attach all the necessary documents related to property and income.
- Soft Approval: After your application is submitted, then the bank will check your CIBIL score and check your income documents. Based on that, your eligibility will be determined, and soft approval will be given if you are meeting the criteria.
- Legal Opinion: The documents submitted by you are transferred to the lawyer in SBI Panel to get it verified. The photostat copy of the Sales Agreement and Construction Agreement will be submitted. In case there is a builder share than a couple of more documents would be required:
a) Encumbrance certificate till current date
b) Receipt of tax paid.
The advocate might even ask for more documents, thus, expect maximum delay at this point.
Technical Check: This panel of SBI will verify the history and present condition of the property and pass its recommendation as to whether the concerned property is meeting the standards of the bank or not.
Valuation of Property: After the legal verification and obtaining the legal opinion, the next step is to visit the property valuator in SBI Panel along with a sales agreement. The property valuator values the property based on which the loan amount will be ascertained. Make sure you collect the Valuator statement from there.
Another important thing you need to keep in mind is that along with you, your spouse and builder signature is required on the e-stamp of purchase.
- Sanction: After your application is assessed and documents verified, along with property inspection, your loan will be sanctioned. You will receive a call from the bank to inform you about the sanctioning of your loan application.The next step would be documentation; you need to carry all the original documents which you submitted along with your application. In case there is a guarantor, then both the borrower and the guarantor needs to be present at the bank for documentation. Also, if there is a landlord share, then the builder is also required to be present.
The presence of all the stated parties is mandatory.Bank provides the facility to the borrower to call for the date on which he wants to receive the funds. A demand draft for the said amount is made on the chosen date.
- Loan Agreement: After the property is valued and all documents related to income and property are verified, the bank then prepares a loan agreement which needs to be duly signed by the applicant.After this, a representative from the bank, ideally, a lawyer, accompanies the borrower to the registrar’s office on the date of the registry.
The original property documents are taken by the bank then and there from the seller or builder itself. Here is the step by step procedure for getting SBI home loan:
- Disbursement: The next step after receiving the Letter of Sanction is to collect the following documents:
- Collect NOC from the builder, which will state that he has not mortgaged the concerned property to any other lender.
- A Tripartite agreement is required when the property is under construction.
- Similarly, in case of construction, a demand note would be required from the builder who would state the amount of money required for a particular stage of construction. Although, make sure that the demand note made is matching with the schedule of payment.
- For under-construction: If there is a case of partial disbursement of the loan amount for an under-construction property, then you can ask for the next part of disbursement by sending an email to the bank manager for the amount. After this, you can ask the builder to send someone at the SBI branch along with the original demand note to collect DD directly from the bank
Opting for SBI to get your home loan is the right choice. The step by step guide given above will help you in making your SBI home loan process smoother, besides it also provides the lowest home loan interest rates and for the longest tenure too.