Ever since our childhood, our parents and mentors have imbibed in us the significance of planning. They’ve taught us that relying on the last moment can often be detrimental to us fulfilling our goals like we want to. When it comes to a home loan, pre-approved financing proves the truth behind this notion.
As the name itself states, a pre-approved home loan is when your financing is sanctioned before you finalise on a property deal. As opposed to usual loans, this doesn’t require any property documents when you get it approved. While this entails all the standard procedures such as checking your home loan eligibility, requesting mandatory documents such as PAN card, tax returns, etc., there are several hassles that pre-approving solves.
No more worrying about delayed funds
Since you already get done with most of the loan verification formalities during the initial stage, availing the final loan disbursal becomes lightning fast! All you’ll be left with is providing the property documents, and once they’re verified, the amount is sent to your bank account.
This is hugely beneficial when you’re zeroing in on a property with shorter tenure and transaction windows. You can quickly secure the deal without worrying about flurrying through home loan EMI documentation, waiting for approvals, and delaying the whole process.
Financial management becomes a breeze
Handling your budget while purchasing a house is probably the biggest hassle pre-approved financing solves. During this process, lenders analyse your repaying capacity and accordingly decide the loan amount beforehand.
Thus, you don’t have to worry about finding the right home loan interest rates, juggling between numerous prospective properties if others cross your budget, and eventually stretching out the whole journey. With a fixed budget in hand, you can scan and choose the best-suited houses and choose the one which you like best. You can still add personal contributions, but with a generic figure in hand, the whole deal gets fine-tuned, and thus, you can finalise on a home very quickly.
Fetching for discounts everywhere
While house hunting, you’ll often find yourself frantically negotiating with builders to secure a discount, which may not even be a guarantee. Once you are a pre-approved buyer, lenders automatically offer discounts because they’re confident about you purchasing the property.
This will help you avail more options and negotiate with numerous builders to find the best deal. Since you have a sanctioned loan in hand, the chances are that most builders will zero in on the amount you’re chasing and thus, you get the house you want at the best possible bargain!
Timelines aren’t a problem anymore
Getting frustrated at the stretched-out durations of loan sanctioning is a common deal-breaker amongst most borrowers. Since pre-approving finishes all documentation approvals and formalities beforehand, the whole process boils down to a shorter time, and you can quickly grab the best property deal before anyone else.
If you opt for an online lender, this gets even better. With their home loan EMI calculator, you can check the instalments you’ll have to pay and choose the best one. Once this is done, and your financing is already approved, you’re good to go!