Following are the common areas of
error that you are likely to make when applying for a home loan – and how to
avoid them.
As if
buying a house in an escalating property market wasn’t difficult enough, you
also need to navigate the home loan process carefully. Though home loans
have been suitably simplified by leading housing finance companies, some parts
of the process can prove to be veritable landmines. These errors can prove
costly in the long run, and even result in the loan application being rejected. We list
these areas of potential trouble and enumerate how you can avoid them:
1. Not having enough money at your disposal for
a range of payments.
Most first-time
home buyers are aware that they require some amount of money to make a down
payment on the house. The down payment is normally split into two components:
The token or booking amount, and the first installment on the house. But you
also need to have sufficient money at your disposal to pay the following costs,
which will not be paid from your home loan:
- Stamp duty costs
- Registration fees
- Lawyers’ and broker fees
- Money to pay towards placing an advertisement in the paper asking for claimants to the property to come forward (this cost is split between the seller and buyer)
- Home loan application fees
- Lender’s evaluation and processing fees
- Stamp duty on the loan agreement
- Pre-EMI money (before the first EMI is deducted)
- Society/developer transfer fees
- Society membership fees
