10 Factors Home Loan Borrowers Must Consider Before Look Out
In today’s scenario, public sector banks and private financial institutions are ready to offer home loans to eligible customers.
In today’s scenario, public sector banks and private financial institutions are ready to offer home loans to eligible customers. Consultants have mentioned 10 important things that home loan borrowers need to keep in mind.
Home Loan Borrowers
1) Bank or financial institution Many organizations offer home loans such as public sector and private banks, private housing companies and public sector housing companies. While public sector banks have to go there several times to get loans, private financial institutions also come door-to-door and make arrangements for the loan. In general, it is worth noting that the interest in public-sector housing companies is slightly lower than in private housing companies.
2) Interest on the loan There are two types of interest rates calculated for a home loan: fixed (fixed) interest and floating interest. The fixed interest can be converted to a floating interest system after 3 or 5 years. If the borrower’s CIBIL rating has scored higher, there is a possibility of asking the bank to reduce the interest rate. Moreover, the method of calculating the interest is of two types, namely, calculating according to the decrease in the loan amount and calculating it once a year. You can choose a bank or financial institution where the monthly instalment is less.
3) Margin money The entire amount of the house or plot is not given as a loan by financial institutions or banks. Therefore, approximately 20 per cent of the total value of the house should be kept in stock. So, you can reduce the loan amount and buy it as a small house. Generally, it is advisable that the monthly instalment of a home loan should not exceed 45 per cent of one’s monthly income.
4) Various charges When availing a home loan, the processing fee, documentation fee, building value, legal opinion etc. are fees depending on non-banking financial institutions. are obtained. The loan can be availed keeping in mind the company where the overall charges are low.
5) Home Loan Approval In general, is it the bank or the branch of the housing company that approves the home loan? Or is it its central review centre? It should be noted that (Centralized Processing Center). The loan is likely to be available quickly if the branch office provides the loan. In case the bank’s Central Review Centre issues a home loan, there will be a delay depending on the number of applicants. Let’s keep this premise in mind.
6) Cheque for Loan Amount When a cheque for a home loan is issued to the builder or builder by the bank or housing company, make arrangements so that the information is made available to the borrower. It’s important to have.
7) The monthly instalment will be less when the loan is repaid in the longer term and the interest amount will be less for the short-term instalment. That is, the interest paid will increase as the tenor increases. Based on that, you can increase the instalments in future and save interest.
8) Loan amount The loan amount is usually disbursed at various levels such as foundation, blight, level, roof etc. The bank managers themselves pay the loan amount depending on the status of the house being constructed. Or the loan amount may be disbursed after the approval of the bank’s engineer. It is advisable to clarify the above procedures of the bank or financial institutions.
9) Moratorium period Generally, it takes approximately 18 months for the construction work of the house to be completed. The home loan would have been disbursed in 3 or 4 categories during that period. Free e for those amounts. M. It is necessary to pay the I and interest regularly.
10) The important aspect is that the construction company chooses a contractor or building promoter who will carry out the construction work. In this case, you can enquire about their previous project and make a choice.
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