Home Loans & Group Integrated
Owning a home is a keystone of wealth, both financial affluence and emotional security”
The above quote by Suze Orman states the fact. Everyone wants to own a home of their own, which is the best and safest investment one could do. But with this rise in lifestyle our expenses have increased. Disposable Personal Income in India grew to 138192890 INR Million. With this rapid increase in expenses, savings have become a crucial part. Well to every problem there is a solution, Home loans many banks and financial institute aid their clients with the home loan so that they could build up their own house and live there happily ever after.
What is the home loan? a legal agreement in which a person borrows money to buy property (such as a house) and pays back the money over a period of years. Home loans consist of an adjustable or fixed interest rate and payment terms. Manier times due to lack of information and half knowledge we tend to miss out details.
Here are 10 home loan facts that every homeowner should be aware of before applying for home loans.
1. It is important to know about the criteria for obtaining home loan in India
If you are looking forward to applying for a home loan, there are certain conditions that you must fulfill. You need to have enough amount of salary along with a guaranteed job.
2. A good Cibil score is a must
Yes, an applicant’s credit history is very wisely checked before granting him a home loan. Thus, your civil score should be fair enough so that it could help you obtain the home loan.
3. You must be capable enough for the repayment of the loan
You need to prove to the bank, your repayment capacity before seeking a home loan from the bank. For this purpose, you are required to share all your important data of investment with the bank. If you are a salaried person, you need to share all your details of employment with the bank. On the other hand, if you are self-employed then you are required to fetch some guarantee to the bank to convince it to provide you a home loan.
4. Only a few statutory expenses are considered
Generally, statutory expenses of a person and his income like stamp duty, service tax, value added tax, legal charges, etc are not taken into consideration while providing a home loan to an individual. But banks consider the cost of the property while funding for the loan.
5. Time is taken for the approval as well as disbursal of the loan
Once all the relevant documents are submitted, banks approve and sanction for the loans to the salaried individuals in 5-7 working days and in 10-15 working days to the self-employed individuals. If there are no such major hiccups with the income verification of an individual, the bank grants a conditional sanction of the loan to the individual within 5-15 working days. The loan amount is disbursed within 2 working days once the bank hands the sanction letter to the borrower.
6. You must have a check on other loans too
It is pretty difficult to take two loans at the same time since you cannot balance the payment of both of your loans. Banks generally take a look at the other loans of the individual. If you have taken two loans at the same time and your earning capacity is not sufficient enough to make the payment of both of them on time, the bank would deny giving you the loan.
7. Important documents to be presented
Whenever you plan on obtaining a home loan from the bank, you must fulfill their condition of presenting all the important documents to them. Banks generally lay down the list of all the necessary papers required in this procedure and you must confirm this rule to get your loan approved. Also, the bank requires, last 3 years income tax return, 6-months bank statement or balance sheet , Provident Funds, Aadhar Card, Pan Card for verification.
8. Various charges related to home loan
There are different types of charges related to your home loan, not all these charges apply to every home loan:
1. Processing fee; 2. Application fee; 3. Administrative fee; 4. Legal fee; 5. Notary fee; 6. Documentation fee; 7. Pre-payment charges; 8. Late payment charges; 9. Loan switch charges; 10. Franking fee on loan and sale agreement
9. Type and the age of the property
The kind of a property that you are planning to buy plays a very important role in the loan system. If your property is a part of a renowned builder and is fresh or approved by other financial institution, you can get your loan without any hassle. On the other hand, you might face a lot of hiccups if the property you are planning to take is a re-sale or an old property.
10. Down payment is important
All the banks and financial institutions demand some down payment before the approval of the home loan. You must make a downpayment of at least 20% of the total amount of the loan that you are planning to obtain.
At Group Integrated our upcoming project Integrated Kamal which is financed by L&T Financial services and subvention scheme is available from L&T Housing Finance Ltd. At Group Integrated we get the projects financed by financial institutions for on-time delivery or possession and also get an approval of projects from all leading banks and financial institutions. It makes the buying process easy for an end user and now we have also started providing subvention scheme to customers as to reduce the burden of home loan and EMI till possession. Projects Home Loan Approved by, a logo of HDFC, State Bank of India, LIC Housing Finance Ltd.