How to apply for IDFC FIRST Bank Home Loan and how the EMI calculator can help before you apply?

IDFC FIRST Bank has become one of the popular destinations for home loan aspirants. The bank offers flexible terms and has a quick approval process

Home loan application processes are known for being stereotyped as cumbersome.

While it is long and requires multiple considerations, banks like IDFC FIRST Bank have streamlined the application process to reduce the turnaround time. This makes them the preferred destinations for individuals requiring home loans. Here is how you should approach your IDFC FIRST Bank home loan applications.

1. Consult IDFC FIRST Bank's EMI calculator

Before applying for a home loan, it is always helpful to know the repayment procedure. Knowing your EMI (Equated Monthly Instalment) can help you plan your loan repayment. By entering details such as loan amount, period, and interest rate, you can calculate your exact monthly EMI with a home loan EMI calculator.

2. Fill out the application form

A home loan application form contains the following personal details – the applicant's name, phone number, residential address, monthly or yearly income, educational information, and employment details. In addition to these details, the applicant must also provide the details of the property that they have finalized. These details also include the property's estimated cost and the present means of financing it.

You need to submit the following documents to the bank or financial institution after filling out the home loan application form:

• Proof of Income
• Proof of Identity
• Proof of Age
• Employment details
• Proof of Educational Qualifications
• Bank statements
• Details of the property intended to be financed

3. Pay the charges

You must pay a processing fee to proceed with the home loan application. This fee is called the home loan processing fee, which is generally up to 1% of the processing fees. The other charges include EMI bounce charges, repayment instrument swap charges, copies of documents charges, loan re-scheduling charges, etc.

4. Interaction with the bank and valuation of documents

After filling out the application form and submitting the required documents, IDFC FIRST Bank takes a couple of days to revert regarding your home loan application procedure. The bank verifies these documents and requests you to visit the branch for interaction before sanctioning the home loan.

This procedure ascertains whether you can repay the loan. After the interaction, IDFC FIRST Bank carries out a valuation of the documents. The valuation confirms the authenticity of all the documents provided in the third step.

5. Approval or rejection

The sixth step is when the bank intimates you about the result of the home loan application. The result can either be 'approved' or 'rejected.' The following criteria are considered to approve or reject an application: credit score, monthly and yearly income, age, qualification, professional experience-related details, current employment details, and the borrower's ability to repay the loan.

6. The offer letter

Once IDFC FIRST Bank approves your home loan application, it provides an offer letter detailing the loan amount, the interest rate and its type, loan tenure, loan repayment mode, and terms, policies, and conditions of the bank home loan.

7. Legal check and the processing of property papers

Once you receive the offer letter from the bank or financial institution, it processes the property papers and conducts a legal check of the property. In this step, the customer has to submit all the original documents to the bank. The bank retains these documents until the completion of loan repayment.

8. The technical check and site estimation

The bank will conduct a technical check and a 'site estimation' before finally disbursing the loan to a borrower. In this step, the bank sends an employee to the property to check details such as:

• The stage of construction
• The progress of the work done
• Quality of the construction
• The layout of the house
• Whether or not the builder has the necessary documents for using the land for construction.
• Property valuation and the environmental areas.

9. The signing of the agreement and loan disbursal

As the last step, the borrower must sign the home loan agreement. The original property papers also need to be handed to IDFC FIRST Bank. A borrower trying to source more funds from other sources must provide relevant evidentiary documents.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.