Are you going to buy a home for the first time in your life? It’s very natural for you to be baffled with a number of queries. Here, we come up with a handy guide to solve all your confusions and endeavour to provide you with a greater peace of mind.
The basic guide:
Fill up the application: This is the first thing you need to consider before you take a home loan. The lender will aid you with the process and you are required to complete the application form, so that you become legally verified for the loan.
Opt for pre-approved loan: Before you step into the core loan integrities, pre-approval of home loan will weigh up your home loan eligibility. However, it will not involve the legitimacy of the property you would like to buy. But, for availing the loan, you will again have to make an application for the same and once the concerned bank is done with cross checking the necessary medians like your age, credit history, the income etc, you will be allowed to dig up the benefits under certain terms and conditions.
Dispensation: After the property is evaluated and its current market price is determined, the financial expert will go through all the required documents to process your home loan.
Approval: A formal approval of the loan is also required and in order to do so, the credit department of the bank checks your eligibility as well as your credit history which is your previous liability to any existing loan. Then, according to your credentials, the amount of loan is approved and sanctioned.
Foreclosure: In case of pre-closing, the mortgage expert will take recourse to the best of skills and make sure that all your real estate documents are secured from the other parties who might claim the possession of the property at any point of time.
Documents required for the loan:
· Application form with photograph duly signed
· Identity proof (residential and age)
· Valid bank statements of last 6 months
· Authentic Salary-slips of last 3 months
· Processing fee documents
· Proofs of Income Tax Returns
· Academic certificates and proofs for business existence
· Valid balance sheet of profit & loss account
Is your property approved by the bank?
All the floors, blocks and towers of your project may not be approved by the banks. Thus, it makes immense sense to check the status of the flat/apartment before you invest in the same. There are a number of payment plan schemes and based on them, the banks sponsor projects. While few banks happen to prefer a particular scheme, the other ones might favour to fund projects under some different plan.
Will the bank finance the entire property?
No matter which bank you choose as your home loan cohort, it will always fund up to 75-80% of the total cost. A range of heads including parking, electric charges, security deposit, maintenance outlay, service tax, stamp duty, registration fee etc. that come under the total eligible cost of the flat may not be covered by the bank. There are also a number of cases where the developer is seen to offer possession; but despite a gap of more or less a year between custody and transference of the deed, some banks have not agreed to sponsor the project during this period. Nevertheless, you should always ensure that the all the payments to the developer are made from your personal account only.
Can resale properties be enlisted for home loan?
In such case, the property should always be indexed in the name of the vendor and the records from its first delivery to the last sale are supposed to be there for security checks. Standard map plan should also be on board for the self constructed properties and in case, the projects are located in areas under gram panchayat or constructed without agreed building plan, banks will not offer financial support for them.
How will you choose the best bank for home loan?
This is perhaps the most crucial thing whenever it comes to availing the best home loan service. So, before you trust any financial institution blindly, never forget to get through the customer ratings and reviews by the patrons who have opted for home loans in the near past. This will lead you towards genuine feedback and help you with a better choice. Also, there are many banks that provide door-to-door services and if you are a busy professional hardly having any time to visit the branch every now and then, such banks can actually come to your great aid.
Last but not the least; comparing the offers on processing fees and interest rates would be the wisest act on your part.
The useful steer comprises of every essential step you would want to know before you are going to take a home loan. Whether you are salaried or self-employed, the nitty-gritty of the process may hit your home purchasing idea with a second thought. Thus, in order to serve you better and guide you through the entire journey, we have listed down an array of fact checks, thereby helping you ward off the common mistakes.