Hi Sundar,
Once you have finalized the house/ property you are buying, after having paid the token amount, you need to arrange the finances for the property. Some of this will come from your savings and some from the home loan. The steps involved are as follows :
1. Understanding maximum loan amount and eligibility criteria - Before going to any bank for a loan, you need to plan your finances and understand how much down payment you can make, how much is the max loan you can avail and what is the EMI you would need to incur on the loan.
2. Selecting the bank - If it is a new property (under construction), then you would already have a list of approved banks/ financial institutions available at the site. You can approach any of these banks. Alternatively, you can approach any nationalized bank/private bank / financial institution directly.
3. Documentation - Once the above two steps are done, you need to work on documentation of the loan. The bank needs KYC documents, account statements of all your accounts, property documents, a title search report of the property (in some cases), registered sale agreement (in some cases) etc. You must try and give more documents than are necessary as that will prevent multiple trips to the bank for documentation.
4. Processing - The bank uses your documents to process the loan application. In most cases there is a processing fee involved.
5. Sanctioning the loan - Once the process is complete, the bank issues a letter indicating that you are eligible for the loan. At this stage, the loan repayment has not yet started. You have only received a letter (sanction letter) to indicate that the bank will be happy to issue a loan.
6. Disbursal of loan - The disbursal is the stage when the loan amount is actually released (in full or in stages). This happens upon registering the sale deed (in case of resale property) or as per the project completion schedule in case of under construction property.
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