What all I need to know about home and home loan ?
- Thread starter vyral_143
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Doremon
Explorer
vyral_143 Congo bro. first of all.
having all said by others, I admit few points extracting from my loan experience.
1. check scheme statutory approval like n.a., n.o.c., fire, plan approval. The best way to cross check this by asking approved file generally reputed builder keeping ready. IMPO, this is very important for any property buyer, take reasonable time to check thoroughly. U may get it checked from local property consultant/lawyer also.
2. Builder may give you info in which banks their scheme already approved. In such case, banks has master file of those schemes and processing of loan very fast in general.
3. On above your eligibility to pay EMI, some private banks can enhance loan value by property valuation-current market rate trend- scenario basis. Second option, they allow additional construction/renovation bill for your flat to increase document value. Beware, your builder may ask some lumsum amount if he money maker mind & most of they always be!
4. If not in a hurry, take my personal word- Go for SBI. But be prepared for repeatative follow up & submissions of papers. I had two loan-SBI & ICICI and SBI stands ahead in terms of transperancy & even in ASS surprisingly. For SBI, min 1 months depends your papers & staff of branch. Banks like ICICI are fast; process in 10-15 days.
5. SBI do not charge for forclosure (complete surrender of loan) or prepayment. Total reg & processing charge slightly higher in SBI as they follow complete procedure like property inspection, bank lawyer fee, valuation charge, affidavit, morgage registeration etc but it is worth. People say SBI makes your property "white" after all such checking formalities
6. SBI approve 80 to 85% loan of total document value & yes don't forget to ask corporate discount if you are in big corporate company. I took SBI loan with 0.25% discount
on customer rate when I was with RIL. They have internal circular on such companies nomination. You may ask politely to see this.
7. Loan cheque transaction : Let your bank to hand over loan payment to your builder. Its safe for people like us
Edit:- Dont forget to insure property as well your life during loan period exclusively.
Write if any specific query in your mind. Happy Homing then!
having all said by others, I admit few points extracting from my loan experience.
1. check scheme statutory approval like n.a., n.o.c., fire, plan approval. The best way to cross check this by asking approved file generally reputed builder keeping ready. IMPO, this is very important for any property buyer, take reasonable time to check thoroughly. U may get it checked from local property consultant/lawyer also.
2. Builder may give you info in which banks their scheme already approved. In such case, banks has master file of those schemes and processing of loan very fast in general.
3. On above your eligibility to pay EMI, some private banks can enhance loan value by property valuation-current market rate trend- scenario basis. Second option, they allow additional construction/renovation bill for your flat to increase document value. Beware, your builder may ask some lumsum amount if he money maker mind & most of they always be!
4. If not in a hurry, take my personal word- Go for SBI. But be prepared for repeatative follow up & submissions of papers. I had two loan-SBI & ICICI and SBI stands ahead in terms of transperancy & even in ASS surprisingly. For SBI, min 1 months depends your papers & staff of branch. Banks like ICICI are fast; process in 10-15 days.
5. SBI do not charge for forclosure (complete surrender of loan) or prepayment. Total reg & processing charge slightly higher in SBI as they follow complete procedure like property inspection, bank lawyer fee, valuation charge, affidavit, morgage registeration etc but it is worth. People say SBI makes your property "white" after all such checking formalities
6. SBI approve 80 to 85% loan of total document value & yes don't forget to ask corporate discount if you are in big corporate company. I took SBI loan with 0.25% discount
on customer rate when I was with RIL. They have internal circular on such companies nomination. You may ask politely to see this.7. Loan cheque transaction : Let your bank to hand over loan payment to your builder. Its safe for people like us
Edit:- Dont forget to insure property as well your life during loan period exclusively.
Write if any specific query in your mind. Happy Homing then!
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4. If not in a hurry, take my personal word- Go for SBI. But be prepared for repeatative follow up & submissions of papers. I had two loan-SBI & ICICI and SBI stands ahead in terms of transperancy & even in ASS surprisingly. For SBI, min 1 months depends your papers & staff of branch. Banks like ICICI are fast; process in 10-15 days.
5. SBI do not charge for forclosure (complete surrender of loan) or prepayment. Total reg & processing charge slightly higher in SBI as they follow complete procedure like property inspection, bank lawyer fee, valuation charge, affidavit, morgage registeration etc but it is worth. People say SBI makes your property "white" after all such checking formalities
Point 4 is no true as far as Trivandrum goes. Max 2 weeks. For SBI
Point 5 good to know for sure now!!!!
vyral_143, am in a similar boat as you are in. (Post-PG, decent sal, looking to buy a 1bhk in mumbai)
I hear its better if one tries to hunt as part of a group of flat-buyers, to get a better rate from the builder.
Do PM me if you have any good leads, and i'll keep you posted as well.
It might take a month around before I start hitting field. I will surely let you know in case of updates. Also request you to provide me same too if you come across any.
Being.smart
Galvanizer
does SBI give home loan against mutual funds ? ?
my eyes got hooked on a 4000 sq.ft bunglow, and i don't have any cash in hands
only Fd's and MF's
my eyes got hooked on a 4000 sq.ft bunglow, and i don't have any cash in hands
only Fd's and MF's
- You should be fine if you have been working for more than 6 months at a reputed company and your company itself is stable. They usually ask for 6 months bank statement and 2~3 months salary slips. Do note that this period should be after your employment has been confirmed and you are already past any probation period.
- Loan amount sanction is calculated based on various parameters. Usually its calculated such that the monthly EMI works out to less than 50% of your monthly take home income. But marital status, your average monthly expenditure, any declarations that you make about property, insurance policies etc. also play a role.
Also note that another key factor that you should consider before hand is that the loan amount released is at max 80% of the base cost of the flat. You should have enough in your coffers to handle the rest of 20% cost, any cost for amenities and taxes, VAT, registration e.t.c.
If you get loan sanctioned, you can avail it within 6 months. After that, they may charge the processing fee again.
As for banks, I strongly suggest against going with the Nationalized banks or LIC even if their loan rates are better. The processing time is too slow and they generally treat their loan customers like sh1t. LIC took more than 2 months to approve loan for a colleague and they made him run around them several times in this period. When he later wanted to pre-pay and close the loan after an year, they asked for a bribe. I have also heard from another guy that a friend of his was asked a bribe by SBI to approve loan. Of course, not everyone may experience this, but its still worth staying away form them.
My home loan is from HDFC and I got the sanction letter 4 days after applying.
- Loan amount sanction is calculated based on various parameters. Usually its calculated such that the monthly EMI works out to less than 50% of your monthly take home income. But marital status, your average monthly expenditure, any declarations that you make about property, insurance policies etc. also play a role.
Also note that another key factor that you should consider before hand is that the loan amount released is at max 80% of the base cost of the flat. You should have enough in your coffers to handle the rest of 20% cost, any cost for amenities and taxes, VAT, registration e.t.c.
If you get loan sanctioned, you can avail it within 6 months. After that, they may charge the processing fee again.
As for banks, I strongly suggest against going with the Nationalized banks or LIC even if their loan rates are better. The processing time is too slow and they generally treat their loan customers like sh1t. LIC took more than 2 months to approve loan for a colleague and they made him run around them several times in this period. When he later wanted to pre-pay and close the loan after an year, they asked for a bribe. I have also heard from another guy that a friend of his was asked a bribe by SBI to approve loan. Of course, not everyone may experience this, but its still worth staying away form them.
My home loan is from HDFC and I got the sanction letter 4 days after applying.
How is your experience so far such as transparency in charges, penalties on partial pre-payment if any ?
Also it might be possible that I will have some extra money with me which I can repay to them but its not factored in my EMI due to 50% in-hand salary rule. Is it possible that I can request for more amount or it will be better to pay that excess as partial pre-payment.
Example: My EMI is 15k but I can actually pay 2k more easily. Based on my EMI I can have loan of 15L but 'actually' I m good till 17L. So will bank provide 17L ? If not, is it good idea to make pre-payment of 2k every month with EMI ?
eternoMind
Herald
I've seen/heard some NBFCs (Indiabulls, Tata Capital and the likes) hike the 50% limit to around 60% of net monthly salary of a loan applier. Under what conditions they do this is not completely vague but then again, they are NBFCs (even if reputed like IB and Tata)!
Pre-payment charges/penalties in whatever mode have been made nil by the government. As for the extra 2K example, if the said bank doesn't give you the additional loan and instead sticks to the 50% criteria, you can pay the extra amount over and above your normal EMI. Doing so, you would be reducing the loan principal by 2K with every payment.[DOUBLEPOST=1413964031][/DOUBLEPOST]@Vince where you planning to buy?
Market is down in most areas so not a bad time per se.
Pre-payment charges/penalties in whatever mode have been made nil by the government. As for the extra 2K example, if the said bank doesn't give you the additional loan and instead sticks to the 50% criteria, you can pay the extra amount over and above your normal EMI. Doing so, you would be reducing the loan principal by 2K with every payment.[DOUBLEPOST=1413964031][/DOUBLEPOST]@Vince where you planning to buy?
Market is down in most areas so not a bad time per se.
^^ I have not made any pre-payments yet. In fact its not even fully disbursed yet. But my general experience with HDFC with regards to approval time, disbursement times and transparency towards information has been good.
If you have extra cash, keep it in bank (earn interest) and plan for using it to directly pay for the flat instead and reduce your amount that you take on the loan. If you are already done with the payments for flat, then you can plan to use to pre-pay the loan and reduced your monthly EMI.
Also you can have a loan sanctioned for 15 lac and take only 10 lac as per your need. If your loan is sanctioned for 15 and later you think you need 20, you would have to go through the approval process for the extra amount.
Your loan eligibility is decided as per the lenders analysis. But its often possible to negotiate for a bit more if required even if you have nothing to show for it. For instance my cousin (sister) applied for 15 Lac loan and got approved for only 13 Lac. She negotiated with them (told them that another lender is willing to offer 15 Lac) and she got approved for 15 Lac. This is purely up to the lender. She would not have got it had it been for 17 Lac.
Also lenders like HDFC offer Tranche EMI as well. Usually, for under-construction flats, you have to pay pre-emi which just interest on the money lent so far without any principal payment. This continues till the construction is completed and then actual EMI starts. So any money that you have paid till that time can be seen as extra payment on top of your regular interest repayment. With tranche facility, you will be able to pay it like regular EMI for the amount lent so far from the start. So you are repaying principal as well and reducing your loan every month.
You also have the ability to increase your EMI and payout your loan quicker if you think you can manage it.
Lastly, you also need be clear about tax considerations. You may have heard that you can claim exemption for 1.5 lac of interest payment and also take exemption for principal payment under 80C. This is not available when your flat is under construction. After your flat is constructed, you can however claim 20% of the total interest amount paid during the construction period towards tax exemption subject to the 1.5 limit each year for next 5 years.
If you have extra cash, keep it in bank (earn interest) and plan for using it to directly pay for the flat instead and reduce your amount that you take on the loan. If you are already done with the payments for flat, then you can plan to use to pre-pay the loan and reduced your monthly EMI.
Also you can have a loan sanctioned for 15 lac and take only 10 lac as per your need. If your loan is sanctioned for 15 and later you think you need 20, you would have to go through the approval process for the extra amount.
Your loan eligibility is decided as per the lenders analysis. But its often possible to negotiate for a bit more if required even if you have nothing to show for it. For instance my cousin (sister) applied for 15 Lac loan and got approved for only 13 Lac. She negotiated with them (told them that another lender is willing to offer 15 Lac) and she got approved for 15 Lac. This is purely up to the lender. She would not have got it had it been for 17 Lac.
Also lenders like HDFC offer Tranche EMI as well. Usually, for under-construction flats, you have to pay pre-emi which just interest on the money lent so far without any principal payment. This continues till the construction is completed and then actual EMI starts. So any money that you have paid till that time can be seen as extra payment on top of your regular interest repayment. With tranche facility, you will be able to pay it like regular EMI for the amount lent so far from the start. So you are repaying principal as well and reducing your loan every month.
You also have the ability to increase your EMI and payout your loan quicker if you think you can manage it.
Lastly, you also need be clear about tax considerations. You may have heard that you can claim exemption for 1.5 lac of interest payment and also take exemption for principal payment under 80C. This is not available when your flat is under construction. After your flat is constructed, you can however claim 20% of the total interest amount paid during the construction period towards tax exemption subject to the 1.5 limit each year for next 5 years.
eternoMind
Herald
haris5sani
Galvanizer
What if property bought is in different state and loan-providing bank n branch is in different state ?
Will they agree or providing loan ?
Also we end up paying 75% extra as interest on home loans, is that true?
Like Take 20 lakh loan and pay 35 lakh to bank for 20 years.
Will they agree or providing loan ?
Also we end up paying 75% extra as interest on home loans, is that true?
Like Take 20 lakh loan and pay 35 lakh to bank for 20 years.
It would be considerably more than 75%. You can use a loan calculator to see the details
http://emicalculator.net/
On a loan of 20 Lac @ 10.25% for 20 years, the interest will work out to an extra 27,11,888 and the total works out to 47,11,888.
So on the principal, you will be paying an extra 135.6% amount as interest.
But then, when you put 20 Lac as deposit in a bank for 20 years, you would not like to see it stay the same, would you?
Final, may be, update to my old thread:
Agreement to purchase flat happened in last week of December. There were many stages during this purchase and my budget have been fluctuated a lot. We had look on almost 60 flats and shortlisted 3. Finally ended up buying one in 18 years old building in one of prime area of my suburb. Almost everything like railway station, family doctor, temples, market, etc is at distance of less than 5 minutes.
Overall process of document work was ultra smooth, thanks to seller. I have got my load approved from Central Bank of India and they have provided exact 80% of property value. Loan process lasted almost for 20 days since documents from seller side were already with bank and only our documents were needed to be processed. Now will move there in about a month on muhurt of Akshay-Trutiya.
I would thank everyone out here who chipped in
Agreement to purchase flat happened in last week of December. There were many stages during this purchase and my budget have been fluctuated a lot. We had look on almost 60 flats and shortlisted 3. Finally ended up buying one in 18 years old building in one of prime area of my suburb. Almost everything like railway station, family doctor, temples, market, etc is at distance of less than 5 minutes.
Overall process of document work was ultra smooth, thanks to seller. I have got my load approved from Central Bank of India and they have provided exact 80% of property value. Loan process lasted almost for 20 days since documents from seller side were already with bank and only our documents were needed to be processed. Now will move there in about a month on muhurt of Akshay-Trutiya.
I would thank everyone out here who chipped in
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