When it comes to applying for a home loan or any other loan, every borrower wants to avoid formalities and get faster approval.
If you have been a responsible customer, lenders may provide you with a pre-approved home loan offer in 2021.
Once you have a pre-approved home loan offer, you can get speedy loan approval.
Besides helping you get quick loan approval, a pre-approved home loan offer comes with more benefits. Read on!
What is a pre-approved home loan offer?
As the name suggests, a pre-approved home loan offer is already approved for you. It means that a lender considers you to be the best borrower for a housing loan.
When you avail of a pre-approved home loan offer, you can get the sanctioned amount credited into your bank account faster. You can also surpass many steps involved in applying for a home loan with a pre-approved deal.
Availing of a pre approved home loan offer also helps you save your time and efforts. It is compared to applying for it conventionally.
What are the benefits of the pre-approved home loan offer in 2021?
You are better prepared to negotiate with your lender
Your home loan has already been approved by your lender. It makes you eligible to deal with them for better rates and more. The negotiation is much easier in this step because a bank is serious with a sanction letter at hand. What’s more, top lenders may already offer you their best home loan rates even before negotiation.
You can choose your repayment tenor easily
A pre-approved home loan offer also means that you are able to select a loan repayment tenor as per your budget. If you choose a smaller tenor, you will be able to repay your loan faster. But you have to pay more as the EMI with savings on interest costs. On the other hand, you will need to pay more interest charges on a longer tenor with a lower EMI amount.
The processing of your home loan becomes dead easy
Once you avail of the pre-approved home loan offer, the loan processing becomes much faster and simpler. It is in comparison to a traditional home loan. The lender has already verified your details and documents. Hence, the loan processing takes less time. Once you go ahead with it, the loan disbursal happens without glitches. The only step left is the verification of your property document, along with other legalities. Once all these are confirmed, your sanctioned loan money is credited to you instantly.
The property search becomes effective
The worst feeling is when you are unable to close in on a preferred home you want to buy. But with a pre-approved home loan offer, a borrower is in a good position to go for the best property. It is because you are aware of the budget. If you have a pre-approved home loan offer of Rs.50 lakh, you will probably look for a home worth Rs.30-40 lakh.
Financial planning becomes hassle-free
When you apply for a home loan, most borrowers have no idea about the exact home loan eligibility. Once you apply without knowing anything, you end up facing rejections. You may be eligible for Rs.70 lakh, but you end up applying for a home worth Rs.1 crore and more. In this case, your application gets rejected because you applied for an amount higher than your eligibility. This way, you have to face rejections. On the other hand, when you have a pre-approved home loan offer in hand, you can plan finances easily. It is because you have an idea of the eligibility and an exact home loan amount. You can choose a property as per the loan amount and avoid hassles. You can also save your time and efforts wasted in a property’s inspection out of the budget.
You can check out your pre-approved home loan offer on a lender’s website. It is to simplify your processing of the loan and make it less time-consuming.
You can explore your pre-approved home loan offer after sharing your basic details like your name and mobile number.