All you need to know about Instant Pre Approved Home Loans\r\nBuying a house is a significant thing to do in today's time. In today's time, owning one's own home adds to the reputation and status of an individual. However, the financial crisis often creates a barrier to own a house and to experience the comfort of a dream home. In such situations, it is a home loan that can help in fulfilling this dream. A home loan is a credit facility that allows you to borrow funds to purchase a house. The process for a home loan is usually lengthy, which involves various steps like application, processing, approval, and, most importantly, meeting home loan eligibility. However, to make things easy and quick, there are pre-approved instant Home Loans. Instant Home loans are pre-approved loans that are offered to existing customers of the bank with an immediate sanction, where the loan amount is quickly disbursed after property verification.\r\nAn instant home loan is offered to existing customers, to skip away the lengthy procedure to attain a home loan. The bank makes offers to the customers, even before they have selected property to buy; to avail, the loan customers need to find a property within the offer time. Banks like ICICI, SBI, and HDFC provide instant home loans to their existing customers, at affordable prices and great offers. Instant Home loans are provided at special interest rates that are affordable and cheaper than the market standards. However, to offer the pre-approved loan, Banks go through the credit history, payback history, banking statements, previous EMIs, and credit score of its existing customers. Further, the instant home loan involves quick documentation since the bank already holds the customer's information. However, the lender cross-checks the customer's income statements before making an offer.\r\n\r\nEligibility of Pre-Approved Instant Home Loans\r\nThe basic eligibility factor for instant home loans is the same as home loan eligibility. The applicants need to be aged between 18-70 years. The loan is granted for a maximum tenure of 30 years. Further, the amount funded by the lender for a home loan is 75% to 90% of the loan amount. In addition to that, to avail of instant pre-approved home loan, the borrower should hold a salary account in the respective bank. The borrower's income and repayment capability are further assessed by the bank to grant an instant home loan.\r\n\r\nFeatures of Pre-approved Instant Home Loans\r\nOffers for Limited Periods: Usually, pre-approved instant home loans are granted to customers for a fixed period. This offer is made to customers even before they have selected a property. Also, the offer includes low-interest rates and options like no processing and documentation fees. However, to avail of the offer, the customer needs to finalize the property before the validity period of the offer expires. Further, though the offer is pre-approved, the loan amount is sanctioned to the borrower only after the property meets the terms and conditions of the lender. If things go well, the borrower gets the loan approved instantly.\r\nEnables Fund Management: A pre-approved instant home loan allows you to manage your funds well. This is because, while the loan offer is made in advance, before finalizing the property, the borrower knows his potential. The borrower is made aware of his finances and thus looks out only for properties that meet his or her financial criteria. Therefore, the loans are easier to manage, as the property bought is set within the budget.\r\nAllows Negotiations: A pre-approved instant home loan allows space for negotiations, both with the bank and with property dealers. Customers can negotiate the loan terms with the bank if they find them unsuitable, being the regular account holders. However, they need to be creditworthy and financially sound. Further, with a pre-approved loan in hand, property dealers are ensured of your purchasing capability and intention. When you have a pre-approved loan, property dealers tend to take you seriously, because they can expect a quick payment from you than from other buyers. This adds to your advantage, and you can easily ask for discounts.\r\nFaster Processing: A pre-approved instant home loan involves quick and fast processing. Before the approval, the bank considers your income stability and then make offers. Further, property documents are verified only before loan disbursal, and the amount is disbursed quickly in a short time. This saves a lot of time from the usual home loan process, which is very lengthy. A usual home loan process involves steps like applying for a home loan, paying the processing fee, discussing terms with the bank, getting the documents evaluated, getting the loan sanctioned, processing of the offer letter, legalizing of the property papers, signing agreements and then disbursement. However, in an instant pre-approved loan, applicants skip steps like application and documents submission; the Banks directly check the income statements, and the loan is disbursed immediately after property papers verification.\r\n\r\nConclusion\r\nA pre-approved instant loan is 'pre-approved' in nature because the lender is already aware of the financial potential of the customer, and are instant in nature, due to their quick disbursal. Pre-approved instant loans are exclusively made available to the bank's customers before the property selection. At times the instant pre-approval loans are offered for a limited period. However, the existing customers can still get their loans sanctioned instantly if they maintain a good financial reputation.\r\nIt's important to understand that offering instant pre-approved loans is a tool for the Banks to continue their engagement with the existing customers who either hold a salary account with the bank or are previous borrowers. These loans also help lenders to strengthen their lending portfolios. Pre-approved instant loan are quick and easy to avail at low housing loan interest rate and set a convenient route for your dream home. However, it's up to the potential borrower to decide the pros and cons according to their feasibility. A loan might be easily available, yet may not be suitable at a particular time. Similarly, at times it becomes the need of the hour to avail of loans even at difficult terms. Thus, the borrower should ensure his lending ability at a particular time by being aware of his or her financial or social needs.\r\nAbout the Author:\r\nMegha Khanna is a budding content writer and an avid reader. She has done her Masters in English Literature and loves exploring different niche like Finance, Fashion, Travel, and Bollywood.