A home loan sanction letter is a letter issued after the home loan sanction process by the lender prior to you getting the final home loan agreement. You will naturally have to get through the paperwork required before this and provide your identity and address proof along with property documents and financial details. A home loan sanction letter format is usually based on your eligibility. You can always calculate your eligibility online before applying for a home loan using a home loan eligibility calculator in order to get an idea of the amount which you can get from the lender.
Once your application has been processed, the lender offers you the terms you may have asked for in your home loan or something slightly different based on your credit history, income, outstanding debts and age among other factors. The current property value will also be considered by the lender along with value appreciation potential. While you should definitely use a home loan EMI calculator
after this to understand the amount to be repaid every month, you should make sure that the sanction letter has been read and understood very carefully by you. Sanction letters will have information about the loan agreement, i.e. the total amount to be sanctioned, the interest rate and base rate on which it has been calculated, whether the rate is fixed/floating and the tenor of the loan.
These are the details that you can use to work out the EMI to be paid every month using an online calculator. You can then decide whether to go ahead with the loan on the terms proposed by the lender or compare with other lenders in order to land a better deal. The sanction letter is not the final home loan agreement and does not legally approve the loan. You will undergo other background checks and additional documents will be needed prior to the making of the final agreement. These letters also have a particular validity which is usually 6 months. Once this period lapses, you will be unable to accept the terms of the loan offer in the sanction letter and will have to apply afresh. Also, some real estate developers may require a copy of this letter before your purchase has been finalized.
Once you have read the letter carefully and agree to all the terms and conditions, prepare to submit all the documents that will be required for the next stage of the process. Bajaj Finserv offers home loan
along with pre-approved offers for other loan types as well. This helps you save time and you only have to check the offer and share some basic information. Get quick financing on your dream home with Bajaj Finserv.
Also Read: Step by Step Home Loan Process