Getting a home is a very important thing in life. It is a long respected dream for most. These days, there's a great increase in the property costs in India. And hence buying a home in 1 payment is difficult for many people. Therefore , many people go for housing loan and it makes the method of buying a home less complicated. Many nationalized and personal banks offer housing loan. There additionally are some housing finance companies in India which offer Housing Loan. In India, the housing loan procedure includes few steps. It could be little process for few folk, if they have all the documents needed in the process. For others, it will be a time consuming procedure.
Housing Loan Procedure in India
Choosing a Housing Loan
While selecting the best housing loan plan, you have got to study a lot and work out which housing loan plan fits best to your needs. Figure out your financial status in the coming couple of years so that you have a basic notion of your resources in the approaching years and select the housing plan that suits you.
Submission Of Application
When you've worked out the plan you need, you have to submit the application form to the Bank. You also will be asked to submit some applicable documents along with the application document. These documents may vary for different banks. These documents are used in making sure of your earnings, age, residence, work and plenty more. At this stage, you've got to pay processing fee for the loan to the Bank. This processing fee is non-refundable. This processing fee will be about 0.5-1% of the loan.
Validation of the Information:
Once you've submitted the form and the relevant documents, the bank will begin to certify the data offered by you in the form. The bank will take a look at your home address, your job and such like. The Bank performs a number of checks to make certain that you will be able to pay back the loan amount.
Issue Of Sanction Letter
After these checks, the bank issues an authorize letter. This letter contains the details such as loan amount, interest rate, monthly reducing balance, mode of repayment and general terms of the loan. This is the approval of the money lending procedure by the bank. However the money will be sanctioned only after the documents and the property that the loan is being granted is totally verified.
Submission Of Documents
After you get the authorize letter, you have got to leave the whole set of original documents of the property being bought with the Bank as security for the sum sanctioned. The bank will have all these documents till you fully pay back the loan. After you give the documents to the Bank, the Bank will verify all of the original documents.
Affirmation of Property
At this point, the Bank conducts a site trip to your property to be sure that there are no violations in the construction. Once the Bank has confirmed the property is legally and technically clear, and if they're pleased with the property, they'll expend the loan amount.
Registration of Property and Signing of Agreements
At this time, the registration of your property happens. And now it's time for signing the final agreement of the house loan. After signing the contract, you need to hand over a bunch of Post dated checks as agreed on the agreement paper.
Payment Procedure
After the bank guarantees that financing the property involves no risk, they pay the amount that is agreed on. At this stage, the money is given to the builder or the owner of the property. The money will be disbursed based on the construction stages of the property. The payment might be full or part based primarily on the construction stage of the property. In case of resale or a finished project, the loan will be forked out in a single installment. If the property is under construction, then the sum will be disbursed in payments depending upon the construction stages.
Housing Loan Procedure in India
Choosing a Housing Loan
While selecting the best housing loan plan, you have got to study a lot and work out which housing loan plan fits best to your needs. Figure out your financial status in the coming couple of years so that you have a basic notion of your resources in the approaching years and select the housing plan that suits you.
Submission Of Application
When you've worked out the plan you need, you have to submit the application form to the Bank. You also will be asked to submit some applicable documents along with the application document. These documents may vary for different banks. These documents are used in making sure of your earnings, age, residence, work and plenty more. At this stage, you've got to pay processing fee for the loan to the Bank. This processing fee is non-refundable. This processing fee will be about 0.5-1% of the loan.
Validation of the Information:
Once you've submitted the form and the relevant documents, the bank will begin to certify the data offered by you in the form. The bank will take a look at your home address, your job and such like. The Bank performs a number of checks to make certain that you will be able to pay back the loan amount.
Issue Of Sanction Letter
After these checks, the bank issues an authorize letter. This letter contains the details such as loan amount, interest rate, monthly reducing balance, mode of repayment and general terms of the loan. This is the approval of the money lending procedure by the bank. However the money will be sanctioned only after the documents and the property that the loan is being granted is totally verified.
Submission Of Documents
After you get the authorize letter, you have got to leave the whole set of original documents of the property being bought with the Bank as security for the sum sanctioned. The bank will have all these documents till you fully pay back the loan. After you give the documents to the Bank, the Bank will verify all of the original documents.
Affirmation of Property
At this point, the Bank conducts a site trip to your property to be sure that there are no violations in the construction. Once the Bank has confirmed the property is legally and technically clear, and if they're pleased with the property, they'll expend the loan amount.
Registration of Property and Signing of Agreements
At this time, the registration of your property happens. And now it's time for signing the final agreement of the house loan. After signing the contract, you need to hand over a bunch of Post dated checks as agreed on the agreement paper.
Payment Procedure
After the bank guarantees that financing the property involves no risk, they pay the amount that is agreed on. At this stage, the money is given to the builder or the owner of the property. The money will be disbursed based on the construction stages of the property. The payment might be full or part based primarily on the construction stage of the property. In case of resale or a finished project, the loan will be forked out in a single installment. If the property is under construction, then the sum will be disbursed in payments depending upon the construction stages.
About the Author:
Jake Velupe is at the moment living around San diego along with his wife Elizabeth Henderson. He was previously the coordinator for a Money Lending Group for over 8 years. For more tips, have a look at this site.
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ReplyDeleteWhile choosing an ideal housing loan plan, you always need to study a lot and should know, which housing loan plan will meet your requirements. Secondly, you need to look financial status in the coming years to understand the actual position of your resources. Once you have analyzed then select the construction loan plan that suits you. i have selected the company that you can check here. These are the strategies that you must adhere in order to get the loan successfully. Thanks
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