Owning your first house is a significant event that involves a complex balancing act between financial decisions, dreams, and emotions. It’s understandable that the process can feel overwhelming for many people, for whom it’s the biggest investment of their lives. Finding the ideal property, setting up funds, and negotiating bank paperwork are just a few of the difficulties that first-time buyers frequently encounter and may make the process tedious.

That’s where we step in. We walk you through every step and guarantee a stress-free and seamless transition from renter to proud homeowner owing to our years of experience negotiating the best home loan solutions.

We will walk first-time homebuyers through the whole home loan process in this blog so they may proceed with assurance and understanding.

Step 1 : Evaluate your financial preparedness

Examine your finances carefully before applying for a home loan. This comprises:

• Income Stability: People who are self-employed or have a steady income history are preferred by lenders.
• Credit Score: You have a better chance of getting approved for a loan and getting good interest rates if your score is higher than 700.
• Current Debts: Maintain a healthy debt-to-income ratio. Eligibility may be impacted by having too many outstanding loans.
• Down Payment Capacity: 75–90% of the property’s worth is often financed by banks. You must use your savings to cover the remaining amount.

At Shiva Advisors, we offer pre-loan examinations to assist first-time buyers in determining their financial competence. This not only increases your self-assurance but also helps you avoid unexpected expenses when your loan is approved.

Step 2 : Understand different home loan options

There is no one-size-fits-all approach to home loans. Based on your requirements, you can select from:

• Fixed-rate loans: The interest rate stays the same for the duration of the loan. Perfect for those who like consistency.
• Floating-Rate Loans: Interest varies based on market conditions. Good for people who anticipate rate reductions.
• Schemes supported by the government: Schemes like the Pradhan Mantri Awas Yojana (PMAY), which provides first-time purchasers with subsidies.
• Balance transfer loans: For people who already have a loan but would like to switch banks for one with cheaper interest rates.

We make sure our clients have access to a broad range of loan options by preserving established connections with leading banks and financial organizations. This enables you to evaluate and select the option that best suits your long-term objectives.

Step 3 : Verify your loan eligibility

Lenders use the following to determine eligibility:

• Age and type of occupation
• Monthly net income
• Current EMIs
• Location and value of property
• Credit timeline

To evaluate eligibility, the majority of banks offer online calculators. But these tend to be generic.

Taking into account your financial status, prospective goals, and the subtleties that banks can miss, we offer individualized eligibility checks. By doing this, you can save time and effort by applying just to places where there is a good likelihood of approval.

Step 4 : Obtain a pre-approval for your loan

You have an advantage while looking for a home if you have a pre-approved loan. In essence, it indicates the maximum loan amount that the bank is prepared to offer you depending on the state of your finances.

Advantages of preapproval –

• Having a clear understanding of your finances
• Greater ability to negotiate with sellers
• Quicker payout if you finalize the property

We speed up the pre-approval process thanks to our established connections with banks, allowing you to spend more time looking for your ideal house and less time on documentation.

Step 5 : Choose the right property

After your finances are in balance, you may begin making a shortlist of affordable properties. When choosing, take into account :

• The property’s legal clearances
• Reputation of the builder and project history
• Future appreciation and resale value
• Close to places of work, schools, and other necessities

The legal and technical aspects of choosing a house are often overlooked by first-time buyers. To help ensure the security of your investment, we work with banks to verify and value properties.

Step 6 : Submit Loan Application and Documents

The next step after deciding on a property is to submit your loan application along with the necessary documents. Usually, these consist of:

• Proof of identity, address, and age
• Proof of income (pay stubs, ITRs, and bank statements)
• Information about employment or evidence of business (for self-employed)
• Property records (agreement, builder’s NOC, etc.)

We at Shiva Advisors streamline this step by assisting clients in creating a comprehensive set of paperwork up front. This reduces the possibility of rejection because of inaccurate or missing documentation.

Step 7 : Loan processing and Verification

The bank starts the verification process after the submission. This comprises:

• Examining your work and income records
• Assessing your credit report
• Examining the property records
• In certain situations, conducting a personal conversation or interview

Due to our long-standing goodwill with banks, our clients frequently receive verifications more quickly. We monitor your application at every turn to make sure it doesn’t encounter needless delays.

Step 8 : Loan sanction and Offer letter

If everything checks out, the bank sends out a letter of sanction that states the following :

• Loan amount approved
• Interest rate (variable or constant)
• Tenure
• EMI configuration
• Additional terms and limitations that apply

Before our clients accept the offer, we go over the sanction letter with them to make sure they understand all the little details. By doing this, future disappointments with hidden charges or loan terms are avoided.

Step 9 : Loan Disbursement

At this point, the builder or property seller receives the approved loan amount in their account. For residences that are ready to move into, the payout can be made in whole; for projects that are still in the planning stages, it can be made in part.

To guarantee a smooth payout, we work with the bank and the builder/seller. Our clients value the fact that we handle these exchanges, saving them the trouble of juggling several parties.