Want Your Own Home? Have A Loan?
Self owned home is something which everyone's wishes. There are some who can afford to buy house on their own but everybody cannot afford to buy house on their own. For those who cannot afford there are several banks and financial institutions who lend easy finance. The person who wishes to buy a house can either get loan from a bank or after inquiring about the rate of interest being charged by them. Certain rules and regulations are needed to be followed before which the bank or financial institution assigns loans. Submissions of important documents are asked by the bank officials which are to be submitted before acquiring loan. Banks ask for these documents in order to check the validity of the person.
Different tenures are available for the borrower to opt like three years, five years, ten years or even fifteen years. These tenures vary in different banks and institutions. The person seeking loan may choose any tenure which depends on the repaying capacity of that particular person.
EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.
It is very necessary to first calculate the price of the property which one wants to buy. Next important thing is to check that the property which one is willing to buy does not have any other legal obligations which are to be satisfied. Best thing is to get a No objection Certificate which explains that the particular property does not have any other liabilities to be paid. One is asked to submit relevant documents as required by the bank or financial institution along with application form before granting of housing loan. Residential address proof and Income proof are among the relevant documents asked by the bank officials. Banks also confirm the organization or the company where the person asking for loan is employed. These banks also confirm the residential address of the person.
Once all the terms and conditions of the bank and financial institution are fulfilled, bank issues a sanction letter. This sanction letter has all the necessary details like the amount of the loan sanctioned, the interest charged on loan amount, tenure of the loan and the mode of payment. Bank or financial institution also requires that all the relevant original documents regarding the property which is to be purchased should be handed over to the bank. Bank or financial institutions keep these relevant documents as a part of security. One should not worry about these documents as documents are in the safe custody of the bank and are only returned to the person when the whole loan amount is repaid. These documents are scrutinized and after visiting the property and ensuring each and every thing the loan is disbursed.
The housing loans is a blessing for those who are in need of house and cannot afford to buy on own. - 23305
Different tenures are available for the borrower to opt like three years, five years, ten years or even fifteen years. These tenures vary in different banks and institutions. The person seeking loan may choose any tenure which depends on the repaying capacity of that particular person.
EMI's which stands for Equated Monthly Installment varies depending upon the tenure one chooses. The more the number of years, the EMI will decrease. It means that the monthly payment of installments decreases as the number of years increase. If the number of years is less, the EMI will definitely increase. The main purpose of the bank is to get back the loan amount along with the interest.
It is very necessary to first calculate the price of the property which one wants to buy. Next important thing is to check that the property which one is willing to buy does not have any other legal obligations which are to be satisfied. Best thing is to get a No objection Certificate which explains that the particular property does not have any other liabilities to be paid. One is asked to submit relevant documents as required by the bank or financial institution along with application form before granting of housing loan. Residential address proof and Income proof are among the relevant documents asked by the bank officials. Banks also confirm the organization or the company where the person asking for loan is employed. These banks also confirm the residential address of the person.
Once all the terms and conditions of the bank and financial institution are fulfilled, bank issues a sanction letter. This sanction letter has all the necessary details like the amount of the loan sanctioned, the interest charged on loan amount, tenure of the loan and the mode of payment. Bank or financial institution also requires that all the relevant original documents regarding the property which is to be purchased should be handed over to the bank. Bank or financial institutions keep these relevant documents as a part of security. One should not worry about these documents as documents are in the safe custody of the bank and are only returned to the person when the whole loan amount is repaid. These documents are scrutinized and after visiting the property and ensuring each and every thing the loan is disbursed.
The housing loans is a blessing for those who are in need of house and cannot afford to buy on own. - 23305
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posted by Mr. Forex at
2:08 AM
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