How to Get Pre-Approved for a Home Loan: A Step-by-Step Guide | Rupeezo

By Rupeezo | 27th, Feb, 2023

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Are you planning to buy a home?

Do you want instant home loan pre-approval?

If you want to make the purchase of your home an easy endeavour, it’s important to get pre-approval for a home loan first.

Having a pre-approval for a home loan is crucial as it helps determine the loan amount that you qualify for. Knowing the borrowing amount, you can start searching for the home within the budget limit.

Whether you want to move to a larger place or purchase your first brand-new home, we will walk you through the entire process for online home loan approval.

If you want to know the quickest and easiest method to get a house loan pre-approval, follow the steps provided below.

Step 1: Know Your Credit Score

When applying for a pre-approval home loan, the first step is to see if you have the required credit score.

The credit score depicts your creditworthiness. Your past credit history, payment behaviour analysis, and the use of credit are taken into consideration for giving you a credit score.

A credit score of 750 or above is considered good by most lenders to get instant home loan pre-approval.

In case your credit score is below 750, you should improve it before you apply for a home loan. You can do this by paying off outstanding debts, avoiding taking more credit, and paying the credit bills on time.

Step 2: Decide Your Budget for Home Loan

If you have a good credit score, then the next step to getting online home loan approval is to determine your budget. The budget for a home loan relies on different factors such as your income, expenses, and other factors of your financial situation.

To find out how much amount is feasible for you to pay as an instalment each month, know your net income. Net income is what you get after deducting all your expenses. By determining the amount you can pay for EMIs, you can decide the amount for a home loan.

Step 3: Collect Your Financial Documents

The third step includes gathering all the necessary documents for house loan pre-approval. These include:

• Income Tax Returns for the Past Three Years
• Salary Slips for the Past Six Months
• Bank Statements for the Past Six Months
• Identity Proof
• Address Proof (Utility Bills or Rental Agreement)

These are some of the important documents that you should keep up to date before applying for a pre-approval home loan. You may also be asked for additional documents depending on the loan requirements by the lender.

Step 4: Compare the Rates of Lenders

Banks, financial organisations, and lenders are readily available to offer online home loan approval. You must do the necessary research to find the right lender for your home loan.

To find and compare the rates of different lenders, you should find search their interest rates, processing fees, repayment terms, and other requirements for the home loan.

It is crucial to choose the one that offers the best terms and interest rates that fit your budget.

Step 5: Apply for Pre-Approval

After finding the lender that conforms to your unique needs, you can proceed to apply for instant home loan approval. There are various online lenders and all of this can be done online, so you don’t have to visit the branch.

To apply for a pre-approval home loan, you will need to fill out an application form and provide your financial documents. The lender will review your application and credit score to determine if you qualify for a loan.

If you are pre-approved, the lender will give you a pre-approved sanction letter that specifies how much you are eligible to borrow. This letter will be valid for a certain period, usually between 13 to 6 months, depending on the lender from whom you received the pre-approved letter.

The process for house loan pre-approval can take weeks or even months, it depends on the lender or on the process itself.

There is no surety that obtaining pre-approval will grant you a mortgage. It is critical to submit form the documents of the property you are buying.

Once you get your pre-approval for the home loan, then the last step is to finalize the loan. For this, you are required to submit additional documents, such as property documents. To ascertain the value or worth of the home you are purchasing, lenders perform a property appraisal process.

After signing the loan agreement, the lender will disburse the loan money to the property builder or seller if everything is in order. You can finally move into your new house.

If the lender finds everything is perfectly arranged, he will proceed with the further process. After signing the loan agreement, the lender will disburse the loan amount to the property's seller or builder. In the end, you may take the possession of your new home.

Additional Tips to Get Pre-approved for Your Home Loan

Begin Early: The pre-approval process must begin as soon as possible because it can may take a lot of time to complete. Gather all the relevant documents for the lender to review your application.

Prepare in Advance: Ensure that all your financial and other necessary documents are set in order before you apply for pre-approval for a home loan.

Search Around: Don't get fixated on the first lender you find. Search more and you will find a lender that offers desired terms of the loan or interest rate that you want for your home loan.

Stick to Your Budget: Know your budget before applying for pre-approval for a home loan, and decide the amount for a home loan staying within your budget limits.

Keep a Good Credit Score: As mentioned before, your credit score plays a crucial role to help you get pre-approved for a home loan. Keep a good credit score by timely paying your bills.

At Last

Know that a credit enquiry will be done, and the pre-approval letter for a home loan gets expired soon. Make the process of acquiring a home loan fast and simple by choosing a reliable with reliable online lender.

Not keeping in mind, the factors mentioned above can get your loan application rejected. Also, make sure to purchase an authorized property, as non-authorised properties are not eligible for pre-approval.

After learning about the process to apply for pre-approval home loan, you may find the process to be lengthy or time-taking. But you can proceed smoothly if you get your loan from Rupeezo.

We are a trustworthy loan provider that makes the process of acquiring loans fairly simple. Get our pre-approved loan services, if you want to experience a seamless process for getting a loan of any kind.

Frequently Asked Questions

1. Is It Hard to Get Pre-approval for a Home Loan?

Getting pre-approved for a home loan is a long-drawn process, which makes it hard. With the assistance of the right online lenders, you can swiftly get through the process and get your pre-approval.

2. How Long Does It Take to Get a House Loan Preapproval?

After you have provided all the relevant information and documents to the lenders, it may take up to 3-6 months to get the pre-approval. The time varies depending on the lender and the intricacy of the verification processes.

3. How Much Does It Cost to Get Online Home Loan Approval?

There is some minimum processing fee involved when getting pre-approved for a home loan.

4. What Do if My Pre-approved Offer Gets Expired?

Pre-approved sanction letter for a home loan stays valid for a maximum of six months. Upon the expiry of the pre-approved letter, you have to apply again to get a pre-approved letter.

5. Why Was My Pre-approval Home Loan Application Rejected?

There could be many reasons for the rejection of your pre-approved application for a home loan such as a low credit score, low income, poor credit history, or unauthorised property.