Friday, 4 December 2015

ASPECTS CONCERNING HOME LOANS


                               



When you decide to take the services of a Home Loan Financial Institution to fulfils particular need, some parameters have to be borne in mind at the time of selection.  It is very hard to obtain the ideal financier in each of the parameters.  You are most likely to make a compromise according to your priorities.

Some of most significant parameters are as follows:
1.You may have to decide on the type of product the financier has to offer, whether it is a loan product to meet your needs, such as for buying land and so on.

2.You have to see if the financier offers the tenure of loan, you want.

3.Whether the rate of interest type is the type you want, i.e., fixed, variable, or floating rate of interest.

4.It is important to know the quantum of maximum loan amount offered by a financier so as to know whether the financier can finance the amount you require.

5.It is also important for you to decide the actual rate of interest value.  You should always compare the effective interest rate after considering all upfront fees etc.  You should also consider the manner of interest calculation i.e., monthly reducing, annual reducing etc.

6.Home Loan Financial Institutions may have some schemes that suit customers of certain professions. You have to check whether you fall into any of those schemes, if so, whether the said scheme suit your requirements.

7.Home Loan Financial Institutions  also may have separate schemes for some projects also.

8.Most of the Home Loan Financial Institutions have an upper limit on the amount they are willing to finance.  If you want a very large amount, you have to consider such factor.

9.You will have to take into account the factor of minimum age of customer to know, if you are suited to the age standards laid down by the Home Loan Financial Institutions.

10.The maximum loan that you would get as regards the value of your house has to be considered.

11.The income norms of the Home Loan Financial Institutions or minimum income will be a parameter to influence your decision.

12.Certain Home Loan Financial Institutions insist on a personal guarantor and you should check this out if you have any doubts regarding providing a guarantor.

13.If you want to buy a house with a co-owner you have to find out whether the Home Loan Financial Institutions accepts the relationship between you and the co-owner.

14.The Home Loan Financial Institutions may insist on only some relationships when joining your application as a co-applicant and you need to check this out.

15.Certain Home Loan Financial Institutions charges some prepayment charges, when you decide to prepay your loan either in par or in full.
16.Home Loan Financial Institutions charge some fees as processing fees which h you needs to pay when you submit your loan application.

17.Home Loan Financial Institutions also charge administrative fees/charges, documentation fee etc., according to the loan amount approved by them and this is different from one Home Loan Financial Institutions to another.

18.Different types of documents are insisted upon by different Home Loan Financial Institutions before approving your loan application, and this would vary from one Home Loan Financial Institutions to another.

19.Should you be purchasing a property on resale, the parameter of maximum age of property at the time of application would be important, as Home Loan Financial Institutions may have a limit on the age of the property when they sanction and disburse the loan.

20.Majority of Home Loan Financial Institutions have a pre-approved list of properties available for which there would be simpler documentation.

21.Home Loan Financial Institutions may have a special rate for the employee of one of its preferred list of employers.

22.Above all and apart from all these, there may also be some other different norms or documentation procedure, for the Home Loan Financial Institutions if you are purchasing a property from any of their builders who are already on their pre-approved list.

The above aspects are only some of the parameters, and you will have to look into prior to your decision on finalizing the Home Loan Financial Institutions from where to avail the Home loan finance.

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