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Home Loan Application Process

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Getting a loan with Home First Finance Company is easy and hassle-free. In this article, we outline the home loan application process step by step.

Identify the property you want to buy

We have drafted a set of guidelines to consider when choosing a property that you want to invest in.

Understand the financial implications

After you have zeroed in on the property of your choice, it is necessary to understand the fully loaded property price. This is a crucial component in planning for the financial arrangements for the purchase. There are often hidden costs to any property, which are disclosed later on. Be aware of your full expected financial outlay with our handy guide.

Apply for a loan

Applying for a loan with Home First is simple and convenient. Just provide the documents, as listed here, and we will ensure hassle-free processing of your home loan application.

Credit appraisal and loan sanction

Home First will consider the applicant and co-applicants income, assets, liabilities, credit history, qualifications, and other factors to decide on the loan. The appraisal may involve visits to the residence and office, as well as personal discussions with the applicant and co-applicants.

If the loan is approved, a sanction letter is sent. You have to return a signed copy of the sanction letter to acknowledge acceptance.

Down payment for the loan

Home First may sanction up to 90% of the property price depending on the credit appraisal. The balance amount, referred to as down payment, has to be paid by you directly to the builder.

The actual percentage of the loan sanctioned and the down payment will be specified in the sanction letter. Once you have made the down payment to the builder, you need to hand over a few documents to HomeFirst so that we can commence disbursal.

Construction phase and pre-EMI interest payments

During the construction phase, Home First will disburse funds to the builder on your behalf. This will be based on the payment requests made by the builder, as per the construction schedule.

Home First will only charge interest on the amount disbursed as a loan during the construction phase. Interest will be billed on a monthly basis and the billing statements will be sent to you before the first of every month. Payments have to be made before the fourth of the following month. These interest payments are referred to as pre-EMI interest payments. EMI payments will start only after completion of the project and registration of the property.

Registration, possession and EMI payments

Once construction is complete and the property is ready for possession, the sale deed has to be executed and registered. This ensures the transfer of ownership rights of the property from the builder to the buyer. The original sale deed after registration has to be handed over to Home First. This indicates the mortgage of the property with Home First. The sale deed can be executed only after the full consideration for the property has been paid to the builder either through the buyer’s own funds or a loan.

Repayment of the loan through Equated Monthly Installments (EMIs) commences from the fourth of the subsequent month after registration. The EMIs will be as per the terms governing the transaction as mentioned in the loan agreement. Try our EMI Calculator to find out the EMI payable for any combination of the loan amount, interest rate, and tenure.

An Electronic Clearing Service (ECS) mandate (should be ACH), authorizing Home First to debit your bank account on a specified date for payment of EMIs, will be collected from you.

Pre-payment of loan

Home First allows partial as well as full pre-payment of the loan, after registration when regular EMIs have commenced.

Partial pre-payment: You can make a partial pre-payment and thus reduce your outstanding loan amount and interest outflow. Home First will give you the choice of 1) Reducing your EMI proportionate to the reduction in the loan amount. The tenure will remain the same as your original tenure in such cases. 2) Reducing your tenure and keeping the EMI the same.

Full pre-payment: You can make a full pre-payment and repay the entire outstanding loan. This will ensure that the loan is closed and the loan agreement is terminated. All original documents pertaining to the property collected from you during the loan approval process will be returned to you.

Home First will NOT charge any pre-payment or closure charge for partial or full pre-payment.

Property and credit insurance

To safeguard yourself from loss to the property by fire and other hazards, it is advisable to take an insurance policy for your property. This will help recover any losses to the property in the event of an untoward incident. A copy of the insurance policy has to be submitted to HomeFirst. All general insurance companies offer property insurance.

If any unfortunate occurrence to the borrower, credit insurance enables the loan to be repaid by the insurance company

Ask your relationship manager for more details on insurance products.

If there are any questions or doubts, please do get in touch with us. We are more than happy to address queries or help

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Also read:

Apply for Home Loan: Step by Step Guide to Home Loan Procedure

Home Loan Prepayment

Stamp Duty Calculator for Home Loan

Encumbrance Certificate and Non-Encumbrance Certificate

MahaRERA: Maharashtra Real Estate Regulatory Authority

Section 24 of Income Tax Act: Check Deduction for Home Owners

How Stamp Duty and Registration Charges are Calculated on Property?

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Your home loan will be processed in 2 steps:

  1. You receive the approval of your home loan.
  2. You sign the loan agreement papers and complete other necessary documentation. The loan amount is thereafter paid directly to the builder by Home First Finance Company.

Loan decisions are made in less than a week. You will receive an SMS on your registered mobile number as soon as we make a decision.

HomeFirst does not charge any prepayment fees. This applies to both partial and full repayments. In fact, we have a special Auto-Prepay feature to facilitate this process for you.

HomeFirst offers loan tenures between 1 year to 25 years. If you opt for a longer tenure, you can get the advantage of a lower EMI each month.

HomeFirst can provide finance up to 90% of the property value. The balance has to be arranged by you from other sources. Please note: 90% financing is only available for loans amounting to less than Rs. 30 lakhs.

All co-owners of the property have to be co-applicants to the loan. A person who is not a co-owner can also become a co-applicant to the loan.

During the construction phase, HomeFirst will disburse funds to the builder on your behalf. These will be based on payment requests made by the builder as per the construction schedule.

HomeFirst will charge interest only on the amount disbursed as loan during the construction phase. In this period, interest is charged only on the disbursed loan amount. For example, if you have a sanctioned loan of Rs 10 lakhs, but the property is under construction and we have disbursed only Rs 4 lakhs, you will be charged interest only on 4 lakhs. These interest payments are referred to as pre-EMI interest payments.

EMI payments will start only after completion of the project and registration of the property.

All cheques to HomeFirst should be written out in favor of ‘Home First Finance Company India Limited’.

In the event of an unfortunate incident, home loan insurance will help you or your family pay off the home loan. This ensures that the burden does not suddenly fall upon family members at a bad time.

Send us your resume on careers@homefirstindia.com with the position you are applying for in the subject line.