Purchasing a home is a very important thing in life. It is a long respected dream for most. Nowadays, there's a great increase in the property prices in India. And therefore purchasing a house in one payment is difficult for many people. Therefore , many of us go for housing loan and it makes the method of purchasing a home less complicated. Many nationalized and private banks offer housing loan. There are also some housing finance corporations in India which offer Housing Loan. In India, the housing loan process includes few steps. It may be tiny process for few folk, if they have all of the documents required in the procedure. For others, it's going to be a long process.
Housing Loan Process in India
Choosing a Housing Loan
While choosing the best housing loan plan, you've got to study a lot and work out which housing loan plan fits best to your wishes. Work out your monetary standing in the coming couple of years so you have a rough idea of your resources in the approaching years and choose the housing plan that suits.
Submission Of Application Document
Once you have worked out the plan you want, you have to submit the application to the Bank. You will also be asked to submit some applicable documents together with the application document. These documents may alter for different banks. These documents are utilised in making certain of your income, age, residence, work and a lot more. At this point, you've got to pay processing charge for the loan to the Bank. This processing fee is non-refundable. This processing fee will be about 0.5-1% of the loan amount.
Ratification of the Information:
When you've submitted the form and the relevant documents, the bank will begin to countenance the info provided by you in the application. The bank will take a look at your home address, your job and so on. The Bank performs a considerable number of checks to make certain that you will be in a position to pay back the loan amount.
Issue Of Permit Letter
After these checks, the bank issues an authorize letter. This letter contains the details such as loan amount, interest rate, monthly reducing balance, style of repayment and general terms of the loan. This is the approval of the money lending procedure by the bank. the money will be sanctioned only after the documents and the property that the loan is being granted is completely verified.
Submission Of Documents
Once you get the sanction letter, you have got to leave the entire set of original documents of the property being purchased with the Bank as security for the loan authorised. The bank will have all these documents until you fully pay back the loan. Once you give the documents to the Bank, the Bank will verify all the original documents.
Validation of Property
At this point, the Bank conducts a site trip to your property to ensure that there are no violations in the construction. Once the Bank has confirmed that the property is legally and technically clear, and if they are pleased with the property, they will fork out the amount.
Registration of Property and Signing of Agreements
At this stage, the registration of your property takes place. And now it's time for signing the final agreement of the mortgage. After signing the contract, you should hand over a handful of Post dated cheques as concluded on the accord paper.
Payment Procedure
After the bank ensures that financing the property involves no risk, they pay the amount that is agreed upon. At this stage, the money is given to the builder or the owner of the property. The cash will be laid out based on the construction stages of the property. The payment might be full or part based on the construction stage of the property. In the event of resale or a completed project, the loan will be disbursed in a single installment. If the property is under assembly, then the loan amount will be forked out in installments depending on the construction stages.
Housing Loan Process in India
Choosing a Housing Loan
While choosing the best housing loan plan, you've got to study a lot and work out which housing loan plan fits best to your wishes. Work out your monetary standing in the coming couple of years so you have a rough idea of your resources in the approaching years and choose the housing plan that suits.
Submission Of Application Document
Once you have worked out the plan you want, you have to submit the application to the Bank. You will also be asked to submit some applicable documents together with the application document. These documents may alter for different banks. These documents are utilised in making certain of your income, age, residence, work and a lot more. At this point, you've got to pay processing charge for the loan to the Bank. This processing fee is non-refundable. This processing fee will be about 0.5-1% of the loan amount.
Ratification of the Information:
When you've submitted the form and the relevant documents, the bank will begin to countenance the info provided by you in the application. The bank will take a look at your home address, your job and so on. The Bank performs a considerable number of checks to make certain that you will be in a position to pay back the loan amount.
Issue Of Permit Letter
After these checks, the bank issues an authorize letter. This letter contains the details such as loan amount, interest rate, monthly reducing balance, style of repayment and general terms of the loan. This is the approval of the money lending procedure by the bank. the money will be sanctioned only after the documents and the property that the loan is being granted is completely verified.
Submission Of Documents
Once you get the sanction letter, you have got to leave the entire set of original documents of the property being purchased with the Bank as security for the loan authorised. The bank will have all these documents until you fully pay back the loan. Once you give the documents to the Bank, the Bank will verify all the original documents.
Validation of Property
At this point, the Bank conducts a site trip to your property to ensure that there are no violations in the construction. Once the Bank has confirmed that the property is legally and technically clear, and if they are pleased with the property, they will fork out the amount.
Registration of Property and Signing of Agreements
At this stage, the registration of your property takes place. And now it's time for signing the final agreement of the mortgage. After signing the contract, you should hand over a handful of Post dated cheques as concluded on the accord paper.
Payment Procedure
After the bank ensures that financing the property involves no risk, they pay the amount that is agreed upon. At this stage, the money is given to the builder or the owner of the property. The cash will be laid out based on the construction stages of the property. The payment might be full or part based on the construction stage of the property. In the event of resale or a completed project, the loan will be disbursed in a single installment. If the property is under assembly, then the loan amount will be forked out in installments depending on the construction stages.
About the Author:
Jake Velupe is right now living around San diego with his partner Elizabeth Henderson. He was formerly the coordinator for a Cash Lending Group for over 8 years. For more tips, check out this site.
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