Owning a home is a dream come true for everyone and one of the important steps towards achieving that dream is a home loan.
Am I eligible for home loan?
Are you an employee in a reputed firm or Government organization or professional having regular flow of income?
Have a clean financial record? And good savings habits?
Is your income sufficient enough to repay the Home loan in equated monthly installments (EMI) s?
If yes to all the three questions, getting home loan may not be a problem for you. The fact that you have chosen a reputed construction company Maram Constructions makes your task much easier.
Simple Steps Of A Home Loan
Short listing of Banks
Submission of Application
Personal Discussion with banker
Credit appraisal and loan sanction
Issuing of Offer Letter
Submission of property documents - legal verification
Signing of agreements and submitting post-dated cheques
Submission Of Application
The documents required are as follows:
Proof Of Income: This will be the primary proof. All the banks insist on last three years Income Tax Return forms- Form 16, Bank account statement for the last six months, Salary slips or certificates, age proof, address proof and identification proof.
Age And Address Proof: You need to submit any one from the list stated here. Copy of your SSC certificate/Driving license/Passport/ration card/PAN card/Electoral Identity Card, PAN Card, Electoral Identity card, Driving license card are suffice for the address proof.
Identity Proof: PAN Card, Driving License or Passport will be required as proof of identity
Employers Details: If you are not working in Government or reputed private company, you need to provide details of your employment. You need to provide brief information about the nature of your employer, business activity, financial status, turnover, profit, major customers, number of employees etc.
This process can be compared with written test. If your answer sheet that is application form is found to be satisfactory in all aspects, you may be called for oral interview in the form of personal discussion. Typically banks take anything from 10 days to 30 days to evaluate your application. The aim of the personal discussion is to gather more details about you, which may not be mentioned in the application. So you are required to keep all the relevant documents along with you, while going for personal discussion.
Banks never go blindly. The bank verifies all the information submitted by you including your residential address, place of employment, employer credentials, residential and work telephone numbers. Normally, this verification process will be outsourced to the specialized agencies.
Credit Appraisal And Loan Sanction
This stage will set for deal or no deal. If the banker is satisfied with your application and credentials, rest assured, you will be getting a home loan to buy residential property in Hyderabad. The banker then issues a Home Loan Sanction Letter. Sanction letter may either be an unconditional one, or may have certain terms and conditions, which you have to fulfill before the loan amount is disbursed.
Home Loan Offer Letter
Home Loan Sanction or Home Loan Offer Letter contains the following details. Loan amount rate of Interest, type (Whether fixed or floating), if the rate is floating then the reference rate, periodicity of the rate revising, tenure, mode of repayment etc.
If you agree with the details mentioned in the home loan offer letter, you will have to sign a duplicate letter of the same for the bank’s records. Never sign on dotted line without verifying the details like the rate of interest, loan amount on the offer letter is the same that was discussed and mutually agreed upon.
Bank checks thoroughly all the documents submitted by you. This is to validate their authenticity. Even the Agreement of Sale you will be entering into with your seller will also be scrutinized thoroughly. For this scrutiny, every bank will have a panel of legal experts. Scrutiny job will be entrusted to one of the members in the panel. Some banks may have in-house legal experts. Even if you pass the financial acid test, unless you cross this hurdle, loan may not be disbursed. If the document found is clear in all aspects, the lawyer will give a go ahead. Sometimes legal expert may call for additional documents.
Submission Of Property Documents
You are required to hand over the entire set of original documents pertaining to your property to the bank. Again, if you have chosen a reputed builders property, and the property is approved, this may not be necessary, as the banker would already be in possession of the above said documents. Otherwise, you have to submit all the original documents pertaining to the proposed property. Which normally includes documents, link documents related to the land, sanctioned plan, building plan, architect-structural designers certificate, no objection certificate from the concerned authorities etc.
Banks will send an expert to visit the premises you intend to purchase. Normally this job is done by Civil Engineer or an Architect. Some banks may send senior employees to evaluate the property. The main aim of this evaluation process is to ascertain the quality of construction. If the property is under construction, to determine the stage of construction & to verify the same as that mentioned in the payment notice issued to you by the builder. Banker also tries to confirm layout of flats and area of property is in compliance with permissions granted by the concerning local body.
Banks carry out an independent valuation to determine whether purchase is in line with the existing market price of the area where property exists. Valuation is the key yardstick in determining the loan amount that can be sanctioned by the bank. The valuation issue rarely arises when property in Hyderabad is purchased from a reputed builder and the residential apartment is a pre approved one.
Signing the home loan agreement
You are required to enter in to a tripartite agreement with the builder & banker. You also need to submit post-dated cheques for the first 36 months, if you agree for this mode of repayment. This agreement will contain a condition binding on the builder to handover the documents after the registration.
After the legal scrutiny, technical verification and evaluation, the draft documents after legal clearance from the lawyer need to be registered with the Sub Registrar. Registration fee and relevant charges are to be borne by you.
Bank typically finance up to 75-80% of the property value. That means you have to contribute at least 20-25% of the property value from your own funds. In banking parlance, it is called the Margin. Registration charges and the cost for interior decoration may be considered the part of the property value. Before commencing disbursal, you need to submit documents to prove that you have paid the margin money. Many of you may need to withdraw money from Provident fund. It may take a while to receive money from PF Authorities.
If that is the case, you need to provide sufficient evidence for the same. It is only after submitting this
proof that the bank will release part-disbursement of the loan directly to the builder. So, the cheque will be in the name of the builder.
Usually, loans are disbursed on the basis of the stage of construction of the residential apartment. In case of resale or ready to occupy properties, the disbursement is full and final.
In case of partial disbursal, the bank does not start to deduct Equated Monthly Instalments (EMIs) immediately. Since, the EMI is calculated on the total loan amount at a particular rate of interest and for a given tenure. Banks charge simple interest on the partly disbursed loan amount. For instance, if you have a sanctioned loan of Rs 25 lakh but the property is under construction and the bank has disbursed only Rs. 10 lakh, you will be charged a simple interest only on the 10 lakh.
This continues until the final disbursement is done. The simple interest paid is called Pre-EMI interest or Pre-EMI. For Pre-EMI payments, banks may take only around six to 24 post-dated cheques.
How much loan am I eligible for?
For Income unto
What is Income?
Loan not sufficient, what to do?
Term lies in the age
Are you a Non Resident Indian (NRI)? And your dream is to purchase a flat in a beautiful residential apartment? You probably need a Home Loan. The following things should be considered before you go on searching for right home loan offer:
Who is a Non-resident Indian?
A Non Resident Indian (NRI) is an individual who is an Indian Citizen but has migrated to another country permanently or temporarily for the purpose of Employment, Education etc. Other terms, commonly used for an NRI are Overseas Indian, Expatriate or Indian Expatriate.
What can a NRI buy?
Non Resident Indians can purchase any immovable property in India except agricultural land, farm house and plantation. NRIs can also avail Home Loan to purchase property. Though it’s called NRI Home loan, it’s just like the loan offered to the resident Indian in many respects. Each bank will maintain a database of approved places.NRIs working in places which are in negative profile may not be able to get Home loans.
In order to get loan, NRI must be a graduate. Educational qualification may not be a constraint for resident Indians. Most of the Banks stipulate that the NRI should have a monthly income of $ 2,000 per month. This yardstick may vary from bank to bank.
NRIs need to submit certain additional documents like copy of the passport, a copy of the works contract. A Resident can pay through post dated cheques or through savings bank account. But NRIs should repay the loan through Non Resident External (NRE) or Non Resident Ordinary (NRO) account cheques only. Resident Indians can avail loan for tenure up to a maximum of 240 months. But, NRIs loan term is 180 months maximum. In fact some banks restrict it for 120 months only. Maximum term for NRI home loans varies from bank to bank.
NRIs not based in India and they may not be in position to sign on all papers and enter into agreements for the purchase of apartments in Hyderabad. So, they need to submit a power of attorney to get a housing loan.
Present job profile, Educational and professional qualifications, experience, probability of continued stay in abroad till the loan repayment is taken into account.
How much loan can an NRI or PIO get?
An NRI or PIO can get a Home Loan of up to 75-80% of the Total Consideration Value of the property.
What are the documents?
Visa stamped on passport
Copy of the employment contract
If the contract is in any language other than English, the same has to be translated into English and counter signed by the employer/Indian Embassy.
Latest salary slips (Certified) for the past 6 months.
Identity card issued by the present employer.
Continuous discharge certificate (if applicable)
Latest work permit.
If you are working in merchant navy, contract slip with income details.
Copy of the local income tax returns.
Non Resident External (NRE), FCNR, NRO and International account passbook sheets.
Overseas Bank account statement for the past six months.
Bio data details about educational qualifications, age, job experience and profession/business with proof.
Power of attorney in favour of local representative in India.
Property Documents required for purchase of a flat from a reputed builder in Hyderabad
Title deeds of the builder/landowner for a period of last 13 Years
If the land is developed by the builder, development agreement between the builder and land owner.
Power of Attorney executed in favour of the builder, if applicable.
An Encumbrance Certificate (EC issued by the concerned sub registrar) for the past 13 years.
Khasra Pahani (a document indicating ownership of property as entered by the revenue authorities)
A sanctioned plan.
An agreement for sale and a construction agreement with the borrower.
In case, if you are in India, the Power of Attorney can be locally notarized. Normally Wife, Husband, Father, Mother, Brother, Sister can be given the power of attorney. The power of attorney holder does not have the power of dealing with the property. He or she gets the powers that you clearly mentioned in the power of attorney.
Passport size photograph.
Copy of your passport, PAN card, Driving License, SSC – School leaving certificate, Birth Certificate, LIC Policy.
Bankers sign verification.
If you are employed – * Latest salary slip/salary certificate showing all deductions for at least the past 6 months.
Form 16 from your employer for the past 3 years.
If you have been in your present employment, Business or Profession for Less than a year, mention details of occupation for previous 5 years, giving position held, reasons for change and period of the same.
If you are self employed
Balance sheet and profit and loss account of the business/profession
Copies of individual income tax returns for the past three years as certified by a chartered accountant
A note giving information on the nature of the business or profession
Year of establishment, bankers, form of organization, details of the Clients, customers, suppliers etc
Certificate or relevant document certifying your net worth
Property Documents required for purchase of a flat from a reputed builder in warangal
Title deeds of the builder/landowner for a period of at least 13 years
Development agreement between the builder and landlord (if applicable)
General Power of Attorney (GPA) executed in favor of the builder (if applicable)
An Encumbrance Certificate (EC) for the past 13 years
Khasra Pahani Certificate which certifies the nature of the land ownership
A sanctioned plan and license
An agreement for sale and a construction agreement with the borrower
Estimates of costs from a qualified engineer
1 passport size photograph
1 copy of your passport/PAN card/Driving License/School Leaving Certificate/Birth Certificate/ LIC Policy/Bankers sign verification
1 copy of last month’s telephone bill/electricity bill/ ration card (first and last page)/Title deed of property/rental agreement /driving license