What is Home Loan process and its phases?

Summary: An Applicant approaches Bank with documents supporting their Employment, Income, Residence and Age Proofs. The Bank then conducts a scrutiny of applicant’s submitted documents. After positive verification, the applicant is issued loan sanction letter. The loan sanction letter contains Bank offer to Applicant. This is Sanction process. If, applicant agrees through a mutual acceptance letter; he is given loan amount as part of disbursement process.

Let’s Break It Down:

0). Ground Zero

Each applicant is required to find out different home loan products and then compare them. Take your time and ask around as to how to go about home loan. Home Loan is a complex bank product and it is alright to little lost, as there are many factors to consider. If you have spent months finding the best nest for you, then you should spend the same time in Home Loan.

Sticking to Home Loan process, let’s assume you have decided upon a Bank X to apply.

1). Do your Home Loan Documents

The most frustrating part of taking a home is documentation. There is nothing smart about the documentation process. Here is a list of documents to prepare. Once you have ALL the documents, before calling Bank X, You have saved almost 2 weeks. (In typical scenario, Bank Agents take 3 documents, and then call 4 days later for 3 more and 2 weeks later for 4 more documents.)

2). Home Loan Application

Bank X will provide you a form to fill and submit. While you are at the bank, show them your documents and ask for GFE(Good Faith Estimate) of your Home Loan interest and processing Fee(also for Home Loan Balance Transfer). Please take the form back home and take your time reading it. This will also give you time to compare bank X offer with Bank Y.

3). Submit Application

Fill out all details in home loan application form and take all your documents to bank X. Submit the form and documents to Bank official and take acknowledgement of all documents submitted. Ask the bank about the time they will take for Sanction process.

4). Applicant Verification (Address, Age, Income source, credit history, assets, liabilities etc )

5). Condition Sanction Letter

If the Bank finds you credit worthy, they will lend you. An offer letter is sent to you by Bank. Or they are required to tell you the rejection reason.

6). Property Documents

Let the Bank now about decision. Good time to negotiate on the offer with Bank X. If you accept, Bank X now needs all documents for legal verification of yours (to be) property.

[Source: https://loaneasy.in/home-loan-process/]

Why The NRI Home Loan is The Best Option for You?

There is no better way to keep in touch with your roots of your childhood than by purchasing a home in your home country. No matter which part of the world you are located; you can easily approach a bank or financial institute and get the dream home anywhere you want.

But before you take such a step there are certain things you will need to consider. No doubt, factors like location, property type and funding will be needed to be taken into consideration. With ample research, one can easily settle on the location and property depending on your choice. However, when it comes to funding, there are various options to consider. While you can save up your income and funds to invest in a house, you will be depriving yourself of other opportunities wherein you can invest your funds for more beneficial returns. One such option includes the NRI home loan. So why is this option a beneficial one? let us take a look at them:

Rate of Interest:

All loans are charged with a rate of interest. However, this rate of interest not only differs from institute to institute, but also to the loan type. This is no different from the NRI home loan. For the standard home loan, the rate normally ranges in between 9% to 12%. However, with the home loan for NRI's it is over 0.25 to 0.5 % more. Although it may seem a bit expensive, it actually comes with shorter repayment tenure and a higher principal amount as well as for Home Loan Balance Transfer.

Shorter Tenure:

When a home loan is provided, repayment tenure is normally calculated on the rate of interest and principal amount. This repayment tenure for a standard home loan can last anywhere between 15 to 30 years. However, for NRI home loan the repayment the tenure is between 5 to 15 years. This is because NRI's have a greater capability to repay the borrowed amount, as compared to other applicants.

Loan amount:

Normally, when you apply for a home loan, banks or financial institutes will offer a loan amount that covers a percentage of the home cost. For a standard home loan, you can get approximately 60 to 70%. With a home loan for NRI's you can get at most 90% of the whole property. However, this solely depends on the borrower's gross monthly income.

Method of repayment:

Most financial institutes and banks only accept repayment through the NRI accounts. This makes it easier for both the bank and the account holder to manage the funds. Additionally, it also makes it convenient for the account holder to access and transfer funds from the foreign currency to the local currency.

In the end, you can see there is considerable difference between the standard home loan and the NRI home loan. All you need is the proper planning strategy and repayment funds to ensure that you can get your dream home easily today.

[Source: http://www.sooperarticles.com/finance-articles/why-nri-home-loan-best-option-you-1467638.html?]

Taking Out a Property Loan

Most of us just do not have the money that is needed to outright buy a piece of property. Properties can be downright expensive, especially if you're then looking to build a home or building on top of the property that has been purchased. This is why it is essential that you look for good property loans in Texas that you can use to help pay for this type of investment. The right type of loan is going to make it easier for you to afford the land that you're looking to buy for future plans.

The best thing about taking out property loans in Texas is that you get to choose how much you want or need for the loan itself. You might only need a few thousand dollars to get yourself started, or you might choose to take out a loan that pays for just about everything you're looking to do in the near future. No matter what your plans, you can find the ideal property loan to make your dreams a true reality for you or your business.

You should also consider the fact that credit scores are considered when looking at property loans in Texas. If you have a bad credit score, you may have higher interest rates than if you had an excellent score and sound financial background. You definitely want to remember this when trying to take out a new loan, as well as for Home Loan Balance Transfer simply because this will affect the amount that you pay back in the long run. You don't want to get stuck in a loan that is just too pricey to pay back and then you do not know what to do.

Taking out a good loan is the first step to ensuring that you're doing something smart for your future. You might want a property that already has a home on it, or you might want a property that you can then build on. You get to choose which type of land you'd like to buy, and then it is up to you to find a loan that fits your own needs. You will find that there are many different loans out there for you, making it easy to get the money you want without having to spend a fortune on your own just trying to afford all of these things that you are looking to do.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/taking-out-property-loan-1383163.html?]

Home Loan balance transfer and its key factor

Home Loan Balance Transfer

Important factors to know while availing home loan

Home Loan balance transfer availed from another Bank / Financial Institution to HDFC and get an additional Top Up Loan of up to Rs.35 lacs. Attractive interest rates that make your Home Loan affordable and easier on your pocket. Customised repayment options to suit your needs. No hidden charges.

Important Points While Transferring Your Home Loan

A home is one of the biggest assets but home loan is considered as one of the biggest liabilities. Taking a home loan is a wise financial decision but transferring it at lower interest rate is another wiser move if taken in time. To catch the attention of the borrowers and make great businesses, banks and lending institutes try to blindfold the customers by releasing lucrative advertisements. So, here are some tips that you should consider while transferring the home loan.

Total Outflow                                                                                                 

Generally banks brag about the lower EMIs and longer tenure. In this case you should calculate the total outflow and do apple to apple comparison to check all the payment layoffs. In longer tenure the borrower usually end up by paying the higher loan amount in terms of paying interest rate for long run. If your budget is not bootstrapped then it is recommendable to stay up with the existing lender and pay off the loan amount as soon as possible.

Processing Fees and Allied Charges

In case of Home Loan Balance Transfer Consider the processing fees, stamp duty, valuation fees, technical and legal charges and other administrative charges that new bank will be levying on you. Compare it with the reduced interest rate and calculate the net profit or net loss. If it seems profitable then you can go ahead with the home loan balance transfer.

Collateral and Outstanding

In case you have paid a larger amount of the collateral then do not show the entire collateral to the new lender. Offer your bank a lesser amount of collateral. In fact use it for taking another loan whenever need arises. Negotiation is the best trick to get the best deal. Compare the offers from different banks and then close the deal.

Allied Account Requirements

Whenever you avail a loan, banks commonly ask you to open an account through which all the repayment will be enrooted. If the case is so then get all the details, applicable charges and the facilities provided. If your current account through which you perform all the banking is with the existing lender for many years then you are a premium customer for them. You are very well versed with their banking norms, you know their staff and you are getting the faster services. These quality services, ease of use and comfort banking will go a long way. Consider these sweeter aspects of the existing lender and do not get fascinated with the lower rate of interest.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/important-points-while-transferring-your-home-loan-1415599.html?]