Showing posts with label housing loan bt. Show all posts
Showing posts with label housing loan bt. Show all posts

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.

Sunday, August 25, 2013

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.