Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
04 JULY, 2022
The process of applying for a home loan can be a long one since a lot needs to be done at both your and the lender’s end. There’s a lot of documentation, verification, and other formalities that need to be undertaken. However, if you have received a pre-approved home loan offer, you’re already a few steps into the home loan process. Usually, those who have a good credit score, a long-standing relationship with the lender, and an overall strong financial profile receive a pre-approved home loan offer. If you are one of them, that’s great news. Here are the benefits of a pre-approved home loan offer from Kotak Mahindra Bank that you should know about to help make a decision:
1. Quicker loan processing
When you receive a pre-approved offer, home loan processing becomes easy and quick and requires minimal documentation. This is because to give you a pre-approved offer, the lender has already gone through your income documents and assessed your creditworthiness. The only thing left essentially is to verify the property documents. Hence, when you apply for a home loan through a pre-approved loan offer, the loan processing is expedited, and the funds too are disbursed quickly.
2. Support in property searching
The homebuying process is a long one that can be daunting, owing to the number of decisions you have to make. One such essential decision is deciding your budget, which can be a tricky one. However, when you have a pre-approved home loan offer, you have a clear number in mind that can help make your property search more effective. For instance, if your pre-approved home loan offer is of Rs 1 crore, you can narrow down your search to properties under Rs 1 crore.
3. Effective financial planning
When you apply for home loan, it’s very important to consider your home loan eligibility. Often, people make the mistake of applying for a loan amount that is a lot higher than their eligibility and get their application rejected. But when you have a pre-approved loan offer, you already know the amount and have more clarity on your eligibility. This also helps in budgeting from the beginning and seeing how the home loan Equated Monthly Instalment (EMI) can work with all your other financial obligations and expenses.
In addition to these benefits, you can also negotiate for better terms. This is because a pre-approved loan offer is given only to those who have a good financial profile. Usually, you may also receive certain other benefits along with your pre-approved home loan offer, such as discounted processing fees if you have a long-standing relationship with the lender. It’s important to note, however, that a pre-approved loan offer does not guarantee a home loan. There will still be a couple more things to be verified and based on that the final home loan sanctioned may differ.
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