One of the biggest hurdles are the income papers of the property or house, which are actually the basis for the assessment of the home loan application. First and foremost, obtaining documents from the finance department is a tedious and time consuming task. The drafting of these documents is mostly viewed as inappropriate in the context of the ownership structure of the property (land or house). Then it is the amount of funding that ignites a dispute between the bank and the applicant. Often we see the applicant not satisfied with the amount of funding and complain about underfunding. Before the financing amount is determined, the bank assesses the repayment ability of the applicant. The repayment capacity is analyzed based on some factors such as the applicant’s monthly net income, unpaid loans, financial history, previous repayment record, continuity in current employment or business, total number of years of employment and type of employment. And of course the applicant’s CIBIL score will be taken into account to assess your financial situation.

The value of the property (in case you are looking for a loan to buy a built house) or the estimate (in the case of a loan to build a house), which shows the cost of completing different stages of construction, are also linked to the volume of the financing. Banks have their own way of valuing a property as they have their own approved appraisers who assign a value to the property based on their set parameters.