Finance Schemes in India:
The Indian housing finance companies offer a range of options for individual loans. The loan schemes are opened to both Indian Residents and NRIs. The loans schemes for Resident Indians are buying a new house, Buying an existing house and Home Improvement. The loans schemes for NRIs are buying a new house and buying an existing house Home Improvement; applied as Resident Indians. There are several schemes and types of loan are available in Indian finance market. Go for helpful guides on the scheme, complete with information on interest rates, loan durations, and company offerings in India.
India Home Loan Process:
Selecting House Type: The applicants have to show the offer letter from the seller as a preliminary idea on the house type to the financer. The house may be a new one, where the builder has to offer a letter mentioning with the size, area, model, and cost of the house. The date of construction, material used, construction quality etc are to be mentioned in the document. Some builders hand over the semi constructed house with foundation, wall, floor and roof only. The rest parts are to be done by the house owner. These documentary proofs help the buyer for getting a loan and that helps in future problems.
If you go for a second house or reselling by the recent buyer, you need to check the documents as a new house. The selling history of the house and the construction date should be investigated and the documents to be submitted for the processing.
Seller’s Details: The Indian financers have a record of local sellers. They can check with the database of the type of houses they build, cost and different models etc. The offer letter showed to the banker confirms the genuine approaches from the sellers.
Technically Perfection in the House: The financers have an investigation team to verify the physical existence of the house. The squad verifies the technical aspects like planned house, construction quality and the location mentioned on the documents. This should be a proper approach from the buyer for more accuracy of the house and a fast processing of the loan amount.
Legal Appraisals: If the house (new and old) is free from legal hassles it would be good
for earliest sanction of loan. The investigation squad also verifies whether any legal disputes lying behind the house. The verification also covers the selling and buying history of the house from the day of construction or buying of the plot.
Repayment EMI (Equated Monthly Installments):
The EMI is a fixed amount calculated on the capital and interest is called flat payment also. You can fix your EMI less by the time of signing the agreement. This fixed amount you have to pay every month on basis of your loan liability. This amount helps you for your annual income tax benefits.
Tips to a home loan
Balance Transfer: Balance transfer is a new face of home loans. Indian consumers are very sensitive about a loan, especially long term debt. The last couple of years tax advantages associated with housing loan have increased and many borrowers rush in to pay up their loan amounts before maturity and write off debts. But the fact is that the housing loans are typically long term in nature and gives the benefit to house buyer. Do not rush in to pay off your long term housing loan and when you decide to pre pay time it carefully.
Home loans for contract employees: There is such types of loans are available from bankers for individuals who are employed on contract basis.
Top-up loans: This is an opportunity. There are so many advantages of buying a house by taking a home loan from a housing finance company. Availing a top-up loan is one such benefit. Existing borrowers can opt for a top-up loan by virtue of the existing home loan to finance their various requirements.
Bridge loan: All most all financers are giving bridge loan when you purchasing a house against selling your old house. The same financer will pay the rest amount of the new cost of the house.
Renovation loans: The term is different but the offering is in addition to the basic home loan for the purpose of buying a house. This type of loan is a renovation loan.
Step-up loan: This is an idea worth considering the home loan industry has never looked healthier. HFCs are falling head over heels to woo the borrower with value added services and flexible products. This loan is one such product, which offers the much needed flexibility to the borrower.
Processing fees: A processing fee is charged to the housing finance company (HFC) for the home loan. Home loans are no different from other types of loans. This is a better deal on different charges individuals have to pay to avail of better service.
Verify the rate of interest in Indian market. The Indian housing finance market reveals that the lending rates are in the range of 11.5% to 15%. This makes ideal for the middle class salaried income group. Gone are those days when huge EMIs were the deterrent factor in the quest for owning a house. The government has taken initiative of making housing affordable by providing huge tax benefit and signaling out low-interest rate regime in India. Most of the housing finance companies in India have responded positively to government initiative and lowered their lending rates. The housing loan today is cheaper than ever before in India.
Loan against mortgage: Bankers and financers do not prefer any convincement rather valid documents of income source and property valuation during the processing. They want to keep a security of mortgage to cover the value against the loan amount. And house is the perfect mortgage for them to provide an easy home loan. The real documents of the house are kept by the banker till the term is over.
Fixed rates loans: The housing financers offer a fixed-rate-loan for customer who wants to continue with the present interest rate till end of the term. The present scenario decides the entire term of the loan on interest. If the comparative rate of interest is low then it is a good chance for the customer.
Floating rates loans: The housing financers offer a floating-rate-loan for customer who wants to change the present interest rate in future. The present rate of interest will not be applied in future. The competitive rate of interest will help you with low interest.
The house inspection: Before possess the house there should be a perfect investigation by self and family members also with an expert who can verify the things such as Cracks on walls, leaking roofs, bad wiring etc. on buying a house. House loan companies offer home improvement loans to finance the cost of tiling, plumbing, electrical work, grills, woodwork, painting, compound walls and almost all improvements.
• Home ready checklist: Take a serious investigation for legal and physical aspects.
The authority approval details of the building plans and the progress of the work.
• Correct title deed of the land where the building is to be constructed or constructed.
Past track record of the builder in delivering on time when you are purchasing.
• The quality of construction material used by the builders for construction and its proportion.
• Stamp duty and registration charges applied as per Indian Government.
Check the future maintenance and remodeling option by the builder.
The modern era has changed a lot in financing, especially home loan in India. The globalization has brought the better search for house, loan, financers etc. Internet is such a supporting medium the things can be possible from any thing and any point of time. Example, you can find a house, a financer, a buyer and a seller with minutes after your decision. The wide availability of data information is fit to your budget, choice. Internet gets you legal advice, arranging finance for the property etc. also. A few clicking on the internet you home is decided.