Five Benefits of Getting a Pre-approved Home Loan

1. Five Benefits of Getting a Pre-approved Home Loan Buying a house requires substantial financial investment, and homebuyers often go for a home loan to fund their purchase. It's one of the important decisions that you will ever make in the home buying decision. And hence, it's essential to go through all your options carefully so that you can avail the best possible loan from financial institutions. If you have a sound financial background, you can qualify for a pre-approved home loan before even purchasing a property. All you need to do is submit a loan application with the required documents to your lender. The lender will give you a fair idea of the loan amount you are eligible for. Read the complete blog to know more about the Pre-approved Home Loan and the benefits that come with it. What is a Pre-approved Home Loan? A pre-approved home loan is a loan that is sanctioned by the bank and financial institution after determining the eligibility of the borrower. The amount that you will be eligible for will be decided on the basis of your income, employment history, credit score, age, and repayment capacity. An important point to note here is that getting a pre-approved home loan and actually receiving the funds (loan disbursement) are two separate processes with different timelines. Pre-approved home loan does not involve scrutinizing the legal and technical aspects of the property you wish to buy. After reviewing all the parameters, a financial institution will give you the final approved letter with the specific rate of interest, tenor, loan amount and other details. With a pre-approved home loan, it is assured that you are eligible basis your financial standing - the lender will be required to share a few mandatory documents such as Financial Documents, KYC Documents, details of running loans, and so on. The application also usually includes a login fee which will be adjusted after the final loan is disbursed. Things to be kept in mind before opting for a pre-approved home loan Before you start house hunting, it is always advisable to check if you are qualified for a pre-approved home loan. Here are some things to be kept in mind before opting for a pre-approved loan : 1. Lenders will perform a credit inquiry after you apply for a pre-approved home loan. So make sure that you are not applying to multiple institutions as it means that multiple credit inquiries are occurring around the same time which may be interpreted by the FI’s adversely and will affect your score negatively. 2. A pre-approved home loan come with a validity period during which they can be used. It is usually for a period of a month.

2. 3. Banks and financial institutions have the right to reject your application even if you are eligible for a pre-approved home loan on account of concerns in legal or technical aspects of the property or due to other parameters that get discovered at a later stage. 4. Customers might not be able to capitalize on the lower interest rates if there is a change in the shortlisted property during the pre-approval and disbursement process, since there is dependency on the property that you are purchasing with regards to it being an approved property or not. Benefits of Getting a Pre-approved Home Loan 1. Easy loan disbursement: The borrower benefits from being able to walk into the bank or financial institution with a pre-approved letter in hand, having an idea of how much they can afford, and saving time on loan initiation. The amount mentioned in the pre-approval letter is usually the maximum loan amount an individual is eligible for. 2. Effective House Hunting: Once the loan is approved through the pre-approval letter, it benefits the borrower to find a property that falls within this range. This helps cut down on the time and effort in looking for houses because you are already aware of the budget, and hence you know which house you can afford. 3. Better Hand at Negotiation with the Seller: Getting a pre-approved home loan benefits you as a buyer because it puts you in a stronger position on the negotiation table. In addition, the builders consider your interest in buying the house to be much more serious compared to interested buyers who don’t have a pre-approved loan. 4. Financial Planning: Getting a pre-approved home loan gives you a good idea of how much money you have to work with. This allows the borrower to plan accordingly and make effective use of their hard-earned money. This also helps the buyer plan their savings and manage other investments well. 5. Faster Turnaround Time: Many institutions have dedicated teams that handle pre-approved home loans, and you are likely to get a much faster turnaround time; usually within 1-2 working days. (T&C applied)

3. Final Thoughts While getting a pre-approved loan for a home does have its benefits, it is important to note that it does not guarantee that the final loan will be disbursed. There are a number of factors that lenders take into consideration when approving a home loan, such as property, financial institution guidelines, and other related documents. So, even if you have a pre-approved housing loan, it's essential to keep up your good credit habits and make all your payments on time to improve your chances of having the loan approved. It's also important to remember a pre-approved home loan is only beneficial if you're serious about purchasing a property. Applying for a pre-approved home loan with multiple lenders can impact your credit score and lead to rejected applications. To avoid this, it's best to talk with an expert and discuss your options.

4. About Company: Company Name: Hero Housing Finance Ltd. Address: 9, Community Centre, Basant Lok, Vasant Vihar, New Delhi, Delhi, 110057 Office Hours: 9 am to 7.30 pm Working Day: Monday to Friday Contact No: 1800-212-8800 Email Id for Enquiry: customer.care@herohfl.com Website: https://www.herohousingfinance.com/