Before you step into the core loan integrities, pre-approval of home loan will weigh up your home loan eligibility. However, it will not involve the legitimacy of the property you would like to buy. But, for availing the loan, you will again have to make an application for the same and once the concerned bank is done with cross checking the necessary medians like your age, credit history, the income etc, you will be allowed to dig up the benefits under certain terms and conditions.
After the property is evaluated and its current market price is determined, the financial expert will go through all the required documents to process your home loan.
A formal approval of the loan is also required and in order to do so, the credit department of the bank checks your eligibility as well as your credit history which is your previous liability to any existing loan. Then, according to your credentials, the amount of loan is approved and sanctioned.
All the floors, blocks and towers of your project may not be approved by the banks. Thus, it makes immense sense to check the status of the flat/apartment before you invest in the same. There are a number of payment plan schemes and based on them, the banks sponsor projects. While few banks happen to prefer a particular scheme, the other ones might favour to fund projects under some different plan.
No matter which bank you choose as your home loan cohort, it will always fund up to 75-80% of the total cost. A range of heads including parking, electric charges, security deposit, maintenance outlay, service tax, stamp duty, registration fee etc. that come under the total eligible cost of the flat may not be covered by the bank. There are also a number of cases where the developer is seen to offer possession; but despite a gap of more or less a year between custody and transference of the deed, some banks have not agreed to sponsor the project during this period. Nevertheless, you should always ensure that the all the payments to the developer are made from your personal account only.
In such case, the property should always be indexed in the name of the vendor and the records from its first delivery to the last sale are supposed to be there for security checks. Standard map plan should also be on board for the self constructed properties and in case, the projects are located in areas under gram panchayat or constructed without agreed building plan, banks will not offer financial support for them.
This is perhaps the most crucial thing whenever it comes to availing the best home loan service. So, before you trust any financial institution blindly, never forget to get through the customer ratings and reviews by the patrons who have opted for home loans in the near past. This will lead you towards genuine feedback and help you with a better choice. Also, there are many banks that provide door-to-door services and if you are a busy professional hardly having any time to visit the branch every now and then, such banks can actually come to your great aid.