Before you apply for a home loan, you should understand how the process works because this will help you understand how a home loan works and what is expected of you. There is a home loan disbursement process that you must go through before you are approved for a home loan, as well as the terms and conditions of the lender you have chosen. The home loan disbursement process consists of three steps: form filling, documentation sanctioning, and home loan disbursement.

After the lender has reviewed your documentation and the property you want to buy or build, you will be given a Loan Sanction Letter. The home loan sanction letter contains all the details such as the final home loan sanction amount, interest rate, tenor period, and EMI that you will be paying, among other things. It is critical that you thoroughly read the terms and conditions of the sanction letter, and if there are any discrepancies, you should contact your lender right away to have them resolved. Part of the loan disbursement process is having all of the necessary documentation that helps you qualify, some of which are listed below:

• The applicants must meet all of the home loan eligibility criteria, including a healthy CIBIL score of at least 750, low monthly obligations, and monthly income. 
• The applicants must submit all required documents in a systematic manner, and it is in your best interest to submit complete and legitimate documents, as any missing documentation can cause a delay in your home loan disbursement, and any fraudulent documents can result in the complete rejection of your home loan application.
• Applicants must demonstrate a consistent source of income. A salaried employee must have worked for an MNC or a Public or Private Sector Company for a minimum of three years, and a self-employed applicant must have a business with a turnover of at least five years.

Here’s how the home loan disbursement process works:

Step 1: Contact the lender from whom you want to obtain a home loan.

Step 2: Complete their home loan application.

Step 3: Submit all necessary documentation.

Step 4: The lender will perform a thorough background check.

Step 5: Once your documentation has been processed and approved, the lender will issue a home loan sanction letter.

Step 6: The home loan disbursement process will be initiated, and the loan amount will be reflected in your loan account. Once the entire loan amount has been disbursed, you can begin paying the EMI in subsequent months.