Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Thursday, May 29, 2014

Things one must know before applying for home loan

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

Things one must know before applying for home loan

You have chosen your dream home, decided upon the furniture, explored banks which provide you the right home loan products. Wondering what next!! You have inadvertently missed on one of the most important processes which is to create a list of queries you need to ask your customer service person at the bank. Though taken lightly by many this is the one step that would go a long way in ensuring that your home loan product is in line with your financial needs and requirements. Do not fret! Comparing and understanding home loan information is no Morse code. Following are a set of questions that would come handy when you meet your banker to either purchase or refinance your home loan.

Can I get the loan for all kind of purchases like ready, under-construction, land, self-construction etc. or is there any other product restriction?

Yes, one can get loans for all kinds of purchases depending upon the bank opted for. While all major banks provide loans for ready property, there are certain banks that do not provide loan for purchase of land or under-construction property.

Banks do have restrictions, which are specific to the profile of the borrower in terms of their annual / monthly salary, loan amount to name a few. How much loan can I get as per my income as well as per the cost of property?

Loan eligibility of an individual primarily depends on two factors i.e an individual's ability to pay and cost of the purchase. These parameters are generally adjudged by the person's monthly income, the agreement value & the market value of the property. For instance if a person needs a loan of Rs 50 Lakhs, he should have a monthly income of approximately 95,000/- for a loan tenure of 20 years.

Percentage funding from the banks also depends on the cost of property. If the loan amount is 75 lakhs or below then the banks would fund 80% of the property cost, while if the price is above 75 lakhs then banks would only fund 75% of the property cost. Will you be considering statutory expenses?

 

Statutory expenses including the stamp duty, registration, VAT, service tax, legal charges are generally not covered by the banks. Banks only consider the cost of property and car parking while funding. Although, there are certain NBFCs that fund the statutory expenses only if the market value supports.

How much time will the loan approval and disbursal take?

After the submission of the requisite documents, banks generally sanction loans for salaried individuals within 5-7 working days and for self employed individuals within 10-15 working days. Considering that there are no major issues with an individual's income verification and credit checks, the bank will provide conditional sanction of the loan within 5 to 15 working days. Once the sanction letter is handed to borrower within 2 working days the loan amount is disbursed.

Do I have to buy an insurance mandatorily to avail a home loan from you?

Buying insurance is a matter of solicitation. Although buying insurance cover is not mandatory, but it is advisable to purchase the same. A loan cover policy is like a jacket that safeguards the asset mortgaged in unforeseen situations such loss of job, loss of limbs, fatal illness or even death.

 

 Is there is part or full Pre-Closure Penalty?

Individuals generally tend to close their loans at the first opportunity, but many hesitate to do so due to the pre closure charges levied on the same. This is a big misconception that individuals have, that there will be a penalty imposed if a loan is foreclosed. Actually, according to a directive by RBI pre payment penalty on floating rate home loans has been discontinued. This has ensured that the discrimination between existing and new borrowers is reduced and the competition amongst banks will result in finer pricing of home loans with floating rate.

Will the penalty be applicable if I switch the loan to another lender?

There is no penalty liable on the borrower in case he opts to transfer the loan to another bank, if the loan is under floating scheme. Individuals tend to switch banks only if they find the rates in another relatively lower or in case the product offering of the other suits the current requirements of the borrower.

 Is there any lock-in period?

There is no lock in period as far as the home loans are concerned.

Who will service my requirements like issuing provisional tax certificates, part closing the loan time-to-time, switching loan from floating to fixed etc., for the next number of years I am going to remain your client?

These administrative requirements are serviced by the bank's centralized call centers who store your data. However, if you have a mortgage broker & advisor, who acts as a bridge between the banker and you, then their professional in-depth knowledge and experience, can enable you to gauge future trends and you can receive timely advice in the interest of yours. In absence of a mortgage broker, these requirements are not fulfilled.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts