Hello,
Finally after completing my post-grad and joining IT firm again with decent salary, I m now looking for getting a 1BHK(approx 470-500 Sq.Ft.) in a Mumbai suburb where rates are around 35-40L for a 1BHK flat.
First of all Congrats
I want to know few things/experiences/suggestions about home loan.
Eligibility - Since how many months I should be working/receiving my salary slips ?
Loan Amount - How much would be maximum loan amount which I can get ?
Hidden or Other charges - What all possible charges and and approx how much they would be ?
Though I didn't took any Home Loan, but was thinking of same. That time I took suggestions from my colleagues who took Home Loan to get a Flat.
So I'd try to jot down the things I came to know.
Eligibility : Differs from Bank to Bank. In general banks asks for 3Years IT Return / Form 16 & 6 Months Salary slips as already suggested above.
Loan Amount : Gross Salary (salary in hand per month) x 50% = Amount (In Lakhs). This is a rough estimate. Say your in hand sal is 40k, so the amount will be 40k x 50% = 20k (In Lakhs) = 20 Lakh. Again this is just a rough estimate. Better use online loan eligibility calculators of banks to get the actual amount. This excludes registration charges and all. Only the amount you need to pay the builder for flat.
Hidden / Other Charges : Generally a small amount is charged to process the loan. (Generally 2k - 5k)
Apart from these generic queries I also have a doubt that can I get loan sanctioned now and buy home after say 3-4 months ? This might be a very noob query but I want to make sure that when I m buying home, I am not having loan stuck in some stage due to any reason.
Absolutely no. Because Bank will not give you any money. They will hand over the money to the Builder in presence of you and builder.
The procedure of home loan is somewhat like this.
1. Contact with different banks (including LIC) and check your loan eligibility. (Banks will give upto 85%, remaining you need to arrange excluding the registration fees, service charge and other loan charges)
2. You choose a flat. (Ofcourse the building should be loan eligible. Else you can't get loan like for e.g. you can get loan on colony flat)
3. You book the flat with token money (around 10k - 20k in KOL, though it depends on the flat / building)
4. You go to bank and submit all the documents. (As already said above, banks generally asks for last 3 years IT Return / Form 16 along with 6 months pay slip)
5. Bank will do the processing (On this stage, they will verify everything, like your lifestyle, how much money you spend every month and all, regarding the building if it's not pre-approved etc.)
6. Generally the EMI will be half of your salary. Bank won't give you any amount of loan of which the EMI can be greater than half of your salary. Because bank also knows, else you won't be able to pay
7. If you loan is approved then good. Else you have to run behind the builder to get your token money back
8. Anyway, now you need to pay the 15% money to the builder in this stage and bank will pay the remaining to the builder in front of you.
9. Now you get ready to pay the EMI
10. Go to onsite and when you are back, return a huge amount of money
Apart from loan thing, regarding home, basic question is what all I need to check if I m going for a flar in new construction building with possession in less than 6-8 months. Also how area is calculated in new flats like carpet, built up, etc.
You guys can also pour in your experiences while buying new flat/getting loan which might give me a lesson or two.
Thanking you all in advance.
Well, this is a very big question and there are many things which differ from area to area.
In max cases, in Kol, the calculation of building (i.e. the sqft) they will show you and what you'll get have huge difference. This is because of they will calculate the stair case and all etc. The plan (approved by Municipal Corporation) and what the actual building is can be hugely different. (Don't try to mess with the Builder unless you have good background
)
Other than these type of queries, you can negotiate, and ask all your queries to the builder frankly. Generally builder will not meet up with you in case of big projects. They hire marketing companies to do this. Unless you have some real queries you won't be able to see the builder. But my humble suggestion is try to get into a meeting with actual builder in these type of cases, just to see the person once, whom you'll be giving that amount of money
Also, try to check if the building is loan approved by SBI, in that case it's best. Always try to go for SBI. SBI Loan is hard to crack but best and transparent. If some building is SBI approved, be sure that no other bank / LIC not going to deny it.
Also I'd like to let you know that, consider LIC too, as they have lower interest rates than most of the banks (HDFC, ICICI, Axis etc.) The eligibility depends on the policies maturity amount (NOTE : Not the premium amount, maturity amount of the policies you have in case of multiple policies).
My experience and all the suggestions above are for Kolkata, for Mumbai it may be little bit different.
