A pre-approved home loan gives you to understand your eligibility and plan your finances on its basis. A loan is an instrument that progressed by banks, to attract customers to find its facilities and benefits. 

The loan's sanction will be done on the primary check by the lending institution, to understand the financial eligibility of the customer and is based on customer repaying capacity and their credit history.

• A preliminary approval report to the customer to have benifits of the pre-approved home loan.The customer has to give all the property details, once the purchase has been decided.
• Verification will done by financial institution of the legal and title information of the property.
• Give conditions  such as interest rate, tenure, penalties, etc., are informed.
• The loan is sanctioned, if all documents suit as per the norms
• The pre-approval is valid for a limited period (approximately three to six months) and one would need to complete the transaction before the approval expires.

 Important things to keep in mind, when availing of a pre-approved home loan

• Apply for pre-approval loan, only after selecting a correct potential property.
• Frequent applications can decrease the credit score of the customer.
• Make sure your should be aware of all terms and conditions for prepayments of loans very carefully.
• Before applying Understand special benefits or discounted interest rates and other offers clearly.
• Make sure of all the applicable penalties and charges in advance.

Experts point out that customers can always aware of all rules of pre-approved loan, when they decide to buy a home on the basis of loan.

By: Shailaja K