I was talking to a client the other day, and he was telling me that the last time he submitted his home loan application; he was left wondering what was going to happen next. As it was the first time he did his refinance, he was pretty worried and anxious about the process. He told me that he was afraid something might just go wrong.
What exactly happens after you have submitted your home loan application? If you can recall, you actually had to submit a bundle of private documents. This bundle of documents will have to be checked by the credit approval team for its accuracy. They will also be checking if your financial profile is strong enough to undertake the mortgage loan that you have applied for. If nothing goes wrong, the bank will offer you the contract so that you can sign and affirm the take up of the housing loan.
That client of mine told me that after he has signed and submitted the contract, he became even more worried that the two banks might not be able to co ordinate, causing his loan transfer to break down, incurring additional penalty fees. I then tried to re assure him that his worries are unfounded. When he has signed the contract, a lawyer will be appointed to inform both banks of the transfer, making sure that the process will be successful.
When your housing loan has been transferred to the new bank, the new financier will send you a letter stating the successful transfer. I hope that by reading a brief description of how the process actually proceeds when you apply for a loan, you will understand that the whole transfer is being handled by a team of legal and finance experts. Do not get worried unnecessarily. If you are still unsure about process, always feel free to call up your bank officer or your mortgage broker to inquire about your application.
