Wednesday, September 10, 2014

What is Seller Home Loan Balance Transfer, how to do it?

Mr. Naveen has stuck with his home loan process when he came to know that the seller is having a home loan on the property and he is not having the funds to pre close it. As Mr. Naveen many customers don’t know how to resolve this situation and find themselves in a dead end, but banks do have a product for those who buy properties from owners with home loan already on the property and the product is termed as “vendor liability” or “seller home loan balance transfer

The process is same as like a normal home loan where the applicants submits the personal, income and property documents along with additional documents like vendor loan account statement, outstanding letter and List of documents deposited in the bank. The process will be done by verifying the personal and income details of the applicants. The panel advocates verify the legality of the property by scrutinizing the documents and by verifying the details in sub registrar offices.

Once all the verifications are positive banks start the process of disbursing the loan by collecting checks and signatures on home loan agreement. Banks first disburse the outstanding loan amount of the previous bank in which the seller is having a home loan. Banks gives the owner the complete responsibility to bring the original documents back and register the property to the purchaser. Once the property is registered in the name of the purchaser the remaining loan amount will be disbursed to the seller.

The process of Seller home loan balance transfer is same as like a normal home loan balance transfer with one small difference i.e the process gets completed in 15 days where in normal home loan BT gets completed in week days of time. Banks offer same home loan interest rates for seller balance transfer cases as of a normal home loan and these home loans are also covered for Income Tax benefit Under Section 80(c) of Income Tax Act.

Saturday, February 22, 2014

Why calculation of home loan eligibility prior to applying is important?

Home loan a product which banks provide to the customers to buy a home by repaying the loan amount availed in Equated Monthly Installments (EMI’s) to the bank. All the customers are provided this product who likes to go for a property purchase depending on their repaying capacity and Banks calculate customer’s eligibility to pay before sanctioning any loan on the basis of his/her monthly income. But we have seen more customers who suffered by the false promises of executives who promised to give more loan amount above the customer eligibility.

Calculation home loan eligibility with the help of home loan eligibility calculator always makes it easy to the customers to process their home loan application with the bank without any issues. These calculators calculate and provide approximate amount of your home loan eligibility by consider your monthly earnings, liabilities and annual variable components.

All the customers need to have a check about their eligibility as it is the factor which decides how much EMI that you will pay on monthly basis towards bank for the repayment period selected. Looking at different options available in terms of repayment is always suggested and one need to follow the below points stated to make sure they get the loan without any hassles.

  •          Calculate home loan eligibility prior to applying with any bank
  •          Know your product and its terms and conditions
  •          Decide on how much loan amount you want to avail
  •          Never go for maximum loan eligibility
  •          Maker higher self-contribution towards the property purchase
  •          Keep an eye on fluctuating home loan interest rates
  •          Never take the executive words as final
All the customers are advised to look at different options of home loan as the market was poured with full of options and cross check the product with other banks. Banks reserves the right to ask for additional documents and clarifications if needed in regard of your home loan application and never try to misguide the bank with false information. Always have a set of photocopies of documents submitted to the bank for future reference purposes.