{"id":258,"date":"2020-06-13T11:57:24","date_gmt":"2020-06-13T11:57:24","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=258"},"modified":"2020-06-13T11:57:24","modified_gmt":"2020-06-13T11:57:24","slug":"everything-you-must-know-before-applying-for-a-housing-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/everything-you-must-know-before-applying-for-a-housing-loan\/","title":{"rendered":"Everything You Must Know Before Applying For A Housing Loan"},"content":{"rendered":"\n<ul class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><li class=\"blocks-gallery-item\"><figure><a href=\"https:\/\/www.loanfasttrack.com\/blog\/?attachment_id=259\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.loanfasttrack.com\/blog\/wp-content\/uploads\/2020\/06\/Housing-loan-services-mumbai-1024x576.jpg\" alt=\"\" data-id=\"259\" data-link=\"https:\/\/www.loanfasttrack.com\/blog\/?attachment_id=259\" class=\"wp-image-259\" srcset=\"https:\/\/www.loanfasttrack.com\/blog\/wp-content\/uploads\/2020\/06\/Housing-loan-services-mumbai-1024x576.jpg 1024w, https:\/\/www.loanfasttrack.com\/blog\/wp-content\/uploads\/2020\/06\/Housing-loan-services-mumbai-300x169.jpg 300w, https:\/\/www.loanfasttrack.com\/blog\/wp-content\/uploads\/2020\/06\/Housing-loan-services-mumbai-768x432.jpg 768w, https:\/\/www.loanfasttrack.com\/blog\/wp-content\/uploads\/2020\/06\/Housing-loan-services-mumbai-800x450.jpg 800w, https:\/\/www.loanfasttrack.com\/blog\/wp-content\/uploads\/2020\/06\/Housing-loan-services-mumbai.jpg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/li><\/ul>\n\n\n\n<p>Home\nloan is a long term financial commitment. And therefore before applying for a\nhome loan it is important that you gain the required knowledge to avoid facing\ndifficulties later and refrain taking wrong decisions. By knowledge it means\nknowing the home loan process, its time duration, list of documents required,\ncharges involved, OCR contribution, lending criteria, eligibility norms,\nunderstanding the importance for property legal and technical, etc.\nInsufficient information on this may create frustration and may hinder the\nsmooth processing for the loan causing unwanted delays in the process. Also at\ntimes missing out on disclosing important information to lenders- banks\/NBFCs\nmay also result in unwanted loan rejections. It is therefore important to be true\nto the lending institutions if you wish to have a hassle free loan processing\nof your <a href=\"https:\/\/www.loanfasttrack.com\/home-loan.html\">housing loan<\/a>.&nbsp;<\/p>\n\n\n\n<p>The\nprocess for applying a secured loan like a housing loan is a time consuming\nprocess and it takes nearly 15-20 working days for a loan to get disbursed.\nBelow mentioned are some of the vital aspects you must know before applying for\na housing loan.<\/p>\n\n\n\n<p><strong>1- Importance of Pre-Sanction Loan.<\/strong>&nbsp;<\/p>\n\n\n\n<p><strong>Do not commit mistakes <\/strong>like Mr. Roy, who booked a\nproperty valued at 1cr while his loan eligibility stood only at 60lakhs.\nFrustrated, Mr. Roy kept running to the lenders but finally faced rejections\nfrom all lenders. Unlike Mr. Roy, it is important that you know your loan\neligibility prior before finalizing the property. The most convenient way to\nknow your exact eligibility is to apply for a pre-sanction loan. A pre-sanction\nloan refers to a loan sanctioned to you only on the basis of your financial\ncredentials. It holds validity for 6 months. The lender might charge you a\nnominal fee for a pre-sanction letter. A pre-sanction reduces your chance of\nineligibility and you exactly know how much loan you can draw and which\nproperty you can afford to book.&nbsp;<\/p>\n\n\n\n<p>On\nreceiving the sanction letter the first thing you need to do is read the page\nfor any special terms &amp; conditions. These special conditions are referred\nto as PSD conditions on which the lender agrees to sanction your case. Say for\nexample: account opening, loan closure conditions, LTV percentage, repayment\nconditions or case-specific conditions such as latest salary credit, updated\nbank account statement,co-applicant addition, etc.&nbsp; which are written by\nthe credit manager. If you disagree or wish to sort any clarification on the\nmentioned terms &amp; conditions coordinate with the sales manager.&nbsp;<\/p>\n\n\n\n<p>Additional\nRead: <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/how-to-read-home-loan-sanction-letter-of-bank\/\"><strong>How To Read Home Loan\nSanction Letter Of Bank.<\/strong><\/a><\/p>\n\n\n\n<p><strong>2- Emphasize on written communications.<\/strong><\/p>\n\n\n\n<p>Do\nnot trust the verbal promises made by the sales team. At times it may be a\ngimmick to increase their sales number. It is therefore important that you\ninsist on having written communications especially via electronic mails over\nverbal conversation regarding the loan processing, documentation required,\ntotal loan processing charges, etc. along with any waiver promised on fees or\ndocumentation.<\/p>\n\n\n\n<p><strong>3- Maintaining transparency.<\/strong><\/p>\n\n\n\n<p>Maintaining\nutmost transparency with the bankers will result in quick and smooth processing\nfor your loan application. It is expected you disclose all the relevant and\nimportant information to the bankers which is crucial for the loan application\nsuch as your job credentials-profile\/job change\/job loss\/demotion\/promotion,\nincome credentials-increment\/bonus\/perks\/salary cut, CIBIL score,\nco-application information, credit card overdue, loan default, delayed\npayments, EMI bounces, property related issues-title issues\/transfer\nissues\/unavailability of property papers, etc.&nbsp; Miscommunications,\nmisleading information or missing out the vital information may cause unwanted\ndelays in processing and increases the chances of loan rejections. The most\ncommon thing observed is not talking about your CIBIL score. By hiding your low\nCIBIL score does not mean your lender will not come to know. The lender only\nafter scrutinizing your CIBIL and past repayment track records approves your\nhousing loan. (Read more on <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/cibil-and-its-significance-in-home-loan\/\"><strong>CIBIL And Its\nSignificance In Home Loan<\/strong><\/a>).Any lame excuses for the\nlow scores are not justifiable and therefore it is important you give accurate\ninformation to your bankers which will save precious time for both.&nbsp;<\/p>\n\n\n\n<p>Also\ngive clarity to the lender of your intentions (if any) to apply with multiple\nbanks to secure low interest rate housing loan. This creates an opportunity to\nbang a home loan with low rates.&nbsp;<\/p>\n\n\n\n<p>Additional\nRead: <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/know-how-your-home-loan-inquiry-impacts-your-cibil-scores\/\"><strong>Know How Your Home Loan\nInquiry Impacts Your CIBIL Scores<\/strong><\/a><\/p>\n\n\n\n<p><strong>4- Loan processing charges.&nbsp;<\/strong><\/p>\n\n\n\n<p>Know\nall your loan processing charges till disbursement well in advance. Take a\nwritten confirmation from the banker through email on the various charges for\nyour loan processing. Most of the heating arguments with the bankers occur only\ndue to the non-clarification on the fees charged. It is therefore important\nthat you remain updated with all such charges involved till disbursement which\nare processing fees + applicable GST, administration cost, legal and technical\ncost, stamp duty, franking, resale affidavit, MOD charge, etc. (read to get\ndetailed information on costs involved on- <a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/must-know-all-costs-in-home-loan\/\"><strong>DON\u2019T GET FOOLED !! MUST\nKNOW ALL COSTS IN HOME LOAN)<\/strong><\/a>. Keep an official record\nof the various cash back and fees waiver offers from the lender (if any). This\nwill ensure the lender values his promised offers.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>5- Property Documentation<\/strong><\/p>\n\n\n\n<p>It is\nunusual that you have an in-depth knowledge on all property papers unless you\nare a person of the same field. This many times is a cause of the problem\nespecially in the case of resale property purchase. The builder properties on\nthe other hand have simple documentation &#8211; agreement copy, OC and CC + approved\nplans &amp; builder NOC which are the only documentation required to disburse a\nbuilder case home loan. The resale transaction however involves an additional\nset of documents apart from the agreement, OC\/CC and the plan copy, the list of\nwhich is mentioned below.&nbsp;<\/p>\n\n\n\n<p>i)\nSet of prior chain of agreements<\/p>\n\n\n\n<p>ii)\nOC copy<\/p>\n\n\n\n<p>iii)\nCC + Plan Copy<\/p>\n\n\n\n<p>iv) Society\nRegistration Copy<\/p>\n\n\n\n<p>v)\nShare Certificate<\/p>\n\n\n\n<p>vi)\nTitle Search report (to be done before purchasing a property)<\/p>\n\n\n\n<p>vii)\n7\/12 of the property<\/p>\n\n\n\n<p>viii)\nEncumbrance Certificate<\/p>\n\n\n\n<p>ix)\nFor CIDCO\/MHADA property<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Copy\nof conveyance deed, original NOC &amp; transfer letter from CIDCO\/ MHADA &#8211; If\nconveyance deed is executed.<\/li><li>Copy of\ntri-party agreement &amp; lease agreement &#8211; If conveyance deed is not executed.<\/li><\/ul>\n\n\n\n<p>Unknown\nto the documentation, sometimes you proceed for registration without actually\nknowing the property\u2019s track record and the ownership titles. Any discrepancy\nin the property papers will reject your home loan application on legal grounds.\nIt is therefore suggested to get the legal and technical done for the property\nbefore finalizing the same. Only after legal and technical clearance of the\nproperty it will be safe for you to invest your lifetime earnings.<\/p>\n\n\n\n<p><strong>6- Importance of RERA and APF in builder property.<\/strong><\/p>\n\n\n\n<p>RERA\nstands for Real Estate (Regulation And Development) Act. It was introduced to\nsafeguard the interest of the home buyers. The RERA registration is mandatory\nfor all builders. Therefore look only for the RERA registered projects and\nbuilders, this will safeguard you against the malpractices of price\nexploitations and delayed possessions.&nbsp;<\/p>\n\n\n\n<p>APF\nstands for Approved Project Financials. The lender banks\/NBFCs provide APF to\nthe developer\/project owner\/builder who has all the necessary approvals for\ntheir project. The APF approval is provided after the clearance of the\nmentioned&nbsp;documents from the builders which are legal papers, government\nclearance, title deeds, approved plans, sale deeds, land approvals from the\nconcerned authorities, clearance from forest\/pollution\/electricity and fire,\netc. The lender then issues a APF number to the developer\/builder. The APF\nensures the credibility of the builder and provides surety that your investment\nis safe and guarantees the timely possession of the project.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>7- Payment towards property TDS&nbsp;<\/strong><\/p>\n\n\n\n<p>In\nresale property purchase, you (the buyer) are liable to pay 1% TDS on the total\nsale considerations above the value of Rs.50lakhs (TDS is not applicable for\nsales considerations below Rs.50lakhs). The TDS amount is to be deducted from\nthe sale consideration payable to the seller of the property and is deposited\nin the government\u2019s account as per the income tax act by filling form 26QB for online\npayment of tax on the e-tax payment portal of the government. A downloaded copy\nof the submitted form 26QB is mandatory to disburse your loan, which needs to\nbe submitted to your lender.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Since\nthe TDS amount is deducted from the sale considerations payable to the seller,\nthe said amount can be clubbed to your OCR- i.e. own contribution amount.&nbsp;<\/p>\n\n\n\n<p>If\nyour seller is an NRI, you have to deduct a TDS of 20%-30% on the total sale\nconsideration from the amount payable to the seller. (for more information on\nNRI home loans read \u201c<a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/everything-you-must-about-nri-home-loans\/\"><strong>Everything You Must Know\nAbout NRI Home Loans<\/strong><\/a>\u201d)<\/p>\n\n\n\n<p><strong>8- Understanding Pre- EMI&nbsp;<\/strong><\/p>\n\n\n\n<p>You\nneed to repay your housing loan through equated monthly instalments auto\ndebited from your bank accounts. The lender offers you a choice to select the <a href=\"https:\/\/www.loanfasttrack.com\/emi-calculator.html\">EMI<\/a>\ndates either 1st, 5th or10th of every month. If your housing loan is disbursed\non any other dates other than the dates of EMI cycle, the lender will charge\nyou per day interest on the loan amount till your EMI date. Say for example, if\nyour loan is disbursed on 25th June and your EMI date is 5th, then you will\nhave to pay interest to the lender from 25th June to 5th July on the total loan\ndisbursement. This interest charge is termed as Pre-EMI.<\/p>\n\n\n\n<p>Additional\nRead: <a href=\"https:\/\/www.loanfasttrack.com\/blog\/is-pre-emi-better-than-full-emi-find-out-yourself\/\"><strong>IS PRE \u2013 EMI BETTER THAN\nFULL EMI. FIND OUT YOURSELF.<\/strong><\/a><\/p>\n\n\n\n<p><strong>Related Blogs:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/mportant-loan-facts\/\"><strong>Purchasing An Under-Construction Property? Here Are The Important Loan Facts You Must Know Before Making A Purchase<\/strong><\/a><\/li><li><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/housing-loan-benefits-for-women-borrower-in-india\/\"><strong>Housing Loan Benefits For Women Borrower In India<\/strong><\/a><\/li><li><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/what-loans-can-i-get-on-my-property\/\"><strong>What Loans Can I Get On My Property<\/strong><\/a><\/li><li><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/home-loan-builder-case-resale-case\/\"><strong>Quick Guide To Difference Between Home Loan Builder Case &amp; Resale Case<\/strong><\/a><\/li><li><a href=\"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/why-is-it-difficult-to-get-a-loan-on-grampanchayat-property\/\"><strong>Why Is It Difficult To Get A Loan On Grampanchayat Property?<\/strong><\/a><\/li><\/ul>\n\n\n\n<p><strong>If you are looking for housing loan guidance for your property\npurchase in Mumbai, visit Loanfasttrack on <\/strong><a href=\"https:\/\/www.loanfasttrack.com\/\"><strong>https:\/\/www.loanfasttrack.com\/<\/strong><\/a><strong>.\nLoanfasttrack provides you hassle free services at your doorsteps with\ncomparative evaluations of more than 13+ top banks, with no additional cost.\nYou can also contact us on 9321020476 or\nemail on <\/strong><a href=\"mailto:info@loanfasttrack.com\"><strong>info@loanfasttrack.com<\/strong><\/a><strong>.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"has-background has-very-light-gray-background-color\">About<a href=\"https:\/\/www.loanfasttrack.com\/index.html\"> Loanfasttrack<\/a>&#8211;\nLoanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on&#8211; housing loan in Mumbai, mortgage loan in Mumbai,<a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\"> personal loan in Mumbai<\/a>, <a href=\"https:\/\/www.loanfasttrack.com\/business-loan.html\">business Loan<\/a>, <a href=\"https:\/\/www.loanfasttrack.com\/business-loan\/apply-online-now.html\">unsecured business loans<\/a>, <a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\">home loan transfer<\/a>,\ntop-up loans, <a href=\"https:\/\/www.loanfasttrack.com\/car-loan.html\">car loans<\/a>,\neducational loans and loan transfers.<\/p>\n\n\n\n<p>It also helps you:<\/p>\n\n\n\n<p><strong>\u221a <\/strong>To\nfind the <a href=\"https:\/\/www.loanfasttrack.com\/home-loan.html\">best bank for home loan<\/a><\/p>\n\n\n\n<p><strong>\u221a <\/strong>To\nget lowest <a href=\"https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html\">home loan rates in\nMumbai<\/a><\/p>\n\n\n\n<p><strong>\u221a <\/strong>To\nget an <a href=\"https:\/\/www.loanfasttrack.com\/personal-loan\/apply-online-now.html\">instant loan in Mumbai<\/a><\/p>\n\n\n\n<p><strong>\u221a <\/strong>To\nget instant personal loan in Mumbai\n&amp; <a href=\"https:\/\/www.loanfasttrack.com\/business-loan\/apply-online-now.html\">business loan in Mumbai<\/a><\/p>\n\n\n\n<p><strong>\u221a<\/strong> To\nmake you qualify for the maximum <a href=\"https:\/\/www.loanfasttrack.com\/loan-against-property.html\">loan against property\neligibility<\/a><\/p>\n\n\n\n<p><strong>\u221a <\/strong>To\nget a low cost <a href=\"https:\/\/www.loanfasttrack.com\/balance-transfers.html\">home loan balance\ntransfer<\/a><\/p>\n\n\n\n<p><strong>\u221a<\/strong> To\nget assured low interest rates for <a href=\"https:\/\/www.loanfasttrack.com\/mortgage-loan\/apply-online-now.html\">loan against property in\nMumbai<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Home loan is a long term financial commitment. And therefore before applying for a home loan it is important that you gain the required knowledge to avoid facing difficulties later and refrain taking wrong decisions. By knowledge it means knowing the home loan process, its time duration, list of documents required, charges involved, OCR contribution, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[5,25,15,11,13,9,12],"class_list":["post-258","post","type-post","status-publish","format-standard","hentry","category-finance","tag-home-loan","tag-home-loan-balance-transfer","tag-home-loan-costs","tag-home-loan-in-mumbai","tag-home-loan-rates-in-mumbai","tag-home-loan-transfer","tag-housing-loan-in-mumbai"],"_links":{"self":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/comments?post=258"}],"version-history":[{"count":1,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/258\/revisions"}],"predecessor-version":[{"id":260,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/posts\/258\/revisions\/260"}],"wp:attachment":[{"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/media?parent=258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/categories?post=258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.loanfasttrack.com\/blog\/wp-json\/wp\/v2\/tags?post=258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}