A loan for a resale home is paid out in one go at registration, rather than in stages as with an under-construction flat. That is simpler, but it means the lender does all its checks before closing — and delays there delay your purchase.
What the lender checks
- Your eligibility — income, existing EMIs and credit history. Lenders cap your total EMIs at a share of your income.
- The property’s legal title — the lender’s lawyer reviews the same chain of documents yours does.
- Valuation — the lender’s valuer sets the value it will lend against. If the valuation comes in below the agreed price, you fund the gap.
- The building’s approvals — some lenders will not fund units without an occupancy certificate or with major deviations.
If the seller still has a loan
This is common. Your lender usually pays the seller’s bank directly to close the loan and collect the original documents, with the balance paid to the seller. Agree the sequence in the sale agreement.
Keep it on schedule
- Get an in-principle approval before you make an offer, so you know your budget.
- Share the property documents with the lender as soon as the token is paid.
- Build a buffer of a few weeks into the agreement for the loan process.
Try the loan eligibility calculator and the EMI calculator to size your budget before you start visiting.
General information only; lender policies differ.
