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.

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.

Home Loan Balance Transfer

Home Loan Balance Transfer is a product which is always in customer's court and which has the capacity to save considerable amounts in terms of Interest that is being paid on a Home Loan Account. Banks usually change the tenure when there is a change in interest rate which make the principal component in the EMI very less. If the tenure crosses 300 months then banks raise the EMI amount and it definitely benefit the customer but  increased EMI will be a additional burden in repayment.

To clear all these hassles to customer banks have designed this Home Loan Balance Transfer product which can give the flexibility of shifting your home loan account to some other bank which is giving lower interest rates and benefits. It is quite like other home loans where customer need to submit all his personal, income and property documents to the bank to which he would like to transfer his loan. The banks processes all the details and releases the outstanding loan amount along with pre closure charges if any to the previous bank directly. Banks will receive all the original documents that are mortgaged for the home loan availed directly.

Banks provide the option of availing different other products along with Balance Transfer. The additional products are Mortgage or Construction. Customer should have income eligibility and the property valuation should support to complete the Balance Transfer and the additional product amount to be disbursed. This product is available to the Resident Salaried individuals, Resident Self Employed Individuals and NRI Salaried Individuals.

Home Loans in Bangalore

Mr. Kranthi Mohan a leading bank’s customer has filed a case against his home loan funded bank about not revealing complete details of repayment structure which affected him badly in the situation where he is not able to repay the home loan EMI’s in time due to job loss. Most of the customers who apply for home loans in Bangalore are always in a hurry to close the process with the pressure of the builder for their payment schedule.

A home loan is a product which banks offer customer to purchase a property with simple and affordable EMI’s with a maximum repayment period of 20 years. Home loans in Bangalore have seen a steep raise in their business with the increase in purchases of real estate properties. But having complete knowledge is most important than completing the process in time. Lets see where all the customers do mistakes when it comes to home loan and resolve the issues for hassle free process who wish to go for a loan to own their dream house

A home loan application will have two applicants in which most of the people feel and believe that co-applicant is not liable of repayment when only applicant income is considered. A co-applicant is equally liable as applicant even his/her income is considered or not. Now lets see the cases when the interest rates are going up, in this case a customer can opt for Fixed Rate of Interest by paying switching fee from Floating to fixed which can save considerable amount to customer. Banks will increase the tenure initially when there is a change in interest rates and when the repayment period crosses 300 months then banks increase the EMI. Customers can opt for increase in EMI amount at any point during the tenure which in turn reduces the repayment period thus reducing the interest paid to bank.

All banks/financial institutions offer Home loan linked life insurance with one time premium which cover the applicant’s life again the home loan. If any risk occurs to the applicant then the complete loan will be cleared by the insurance company and the documents will be released to co-applicant. All the customers are suggested to opt for Home loan linked insurance which is a cover in difficult situations.

Banks provide customers of some facilities like switching the home loan to other bank for better interest benefits, pre closing the loan, making part payment towards the home loan account amount of which will directly deducted from principal amounts, interest rates switching, Income Tax benefits on interest paid amounts etc. A simple ground work on these things will save huge amount which a customer pay due to lack of knowledge on the products.