How to avail easy finance for your new dream house

Posted by Shreekant Rao on November 23rd, 2016

Buying an own house is one of the happiest moments of individual's life but it could turn into a nightmare if one doesn’t do a thorough research on the type of financing they wish to choose, interest rates, processing fee charged, etc. Project delays or partial loan sanctioned are amongst the most common problems buyers face these days. So, it’s better to do proper research beforehand on the best housing finance companies, their loan structure, interest rates applicable, other charges like processing fee, stamp duty being incurred on your home loan.

It is mandatory that builders need to have project approval before selling the properties. When planning to buy, ask for a copy of land use certificate, which shows whether the land can be used for residential purposes. If the construction of the property is complete, look for completion and occupancy certificates. Take an advice of the lawyer to vet these documents.

Try to get housing finance companies track records on financing the projects. Check how many projects have been delivered so far, how many have been delayed and the reason for the delays. If possible, visit the completed projects of the builder to check the construction quality as well.

Before the start of any new projects, builders approach housing finance companies & banks for initial capital. Before agreeing to fund the projects, banks or finance companies evaluate the viability of the project. If you see trusted banks or finance companies financing a particular project you can approach them.

Before applying for home loan, at any of the leading housing finance companies or banks, calculate the amount you’re eligible for. In fact, you can do this even before you start house-hunting so that you know your house budget. Take the help of online EMI calculators to see how much money will be sanctioned to you based on your income sources, credit score & risk appetite. If you feel the amount is not enough, explore the option of a joint loan with parents or spouse.

Keep in mind, housing finance companies offer only 80% of the property costs. So, you would have to arrange for the remaining amount, along with the registration & processing fees and other expenses.

Housing loans are available for the tenure of up to 30 years. Online housing loan calculators will help you compute monthly installment to find out which loan amount and duration is feasible for you.

Currently, some leading housing finance companies are passing on the benefits of rate cuts to the consumer. At present, you can avail home loans at an interest rate as low as 9 to 10 %. There are special discounts given to women applicants as well.

Home loan interest rates are one of the primary concerns for taking a loan. It helps a lender to select an appropriate home loan to a great extent. Interest rates depend on various factors like availability of money in the market (liquidity), inflation and monetary policies. They are categorized in two ways fixed rate or a floating rate. Under fixed rate loan the ROI remains constant throughout the loan period, while in floating rate loans the ROI is linked to market conditions and may change periodically. They could be linked to the base rate, inflation, or other parameters, each bank selects its own methodology to fix this

Before signing the sales, read every point carefully. Check whether all that was promised is incorporated in the agreement. Keep a note of the date of possession, penalties on a delay of monthly installment, mode of payment, payment tenure, etc.

Online services have really made the loan application process go smooth and quick, you can check the loan eligibility, interest rates applicable, EMI set and other criteria related to documents, etc. anytime instantly while on the go. You don’t even need to have a desktop or sit at your offices or cyber cafes for loan inquiries. In fact, some leading housing finance companies have come up with a mobile app to manage your day-to-day housing finance operations, making it easy and convenient for you. You can access it by simply logging into an online account at housing finance company app. Besides, it offers additional advantage like downloading income tax certificates at a click of a button and view all the important information related to your home loan.