Choosing
home loan lender is a difficult task.In this competitive and aggressive home
loan market, companies are all set to give you a rosy picture.Let’s see the
parameters which influences in deciding your home loan lender.
Personal Relations
It
is not personalised services but personal relations you have with your
lender.After all,in long period of
loan repayment say 15 years, you may default any EMI due to illness or social commitment or job shifting.Your financer just waiting for a chance to slap
fines, interest, legal notice charges,late payment charges, and compound
interest on defaulting period besides harassing with its recovering agents.
Thus
giving you mental agony and force you to take extreme steps to repay it at
once.Normally, it is advisable to take loan from your banker who knows you for
years and some times co-operate while giving you extra time, with any
obligation, to pay due EMI.Yours bankers, specially with conservative approach
will give you best figure which you can repay easily.Aggressive banks will
tempt you to take big loan which are not within your reach to repay in future.
Interest Rates
Often
floating rates and fixed rates are taken into account while taking home
loans.To take maximum advantage, you
take floating rates, expecting to go further down. Which bank announce and notified that you
have been charged less from this month onwards and now your new EMI is less
because of floating rates have decreased?The probability of interest rates may
go up since RBI and finance ministry have cautioned banks for increasing NPA,
hence banks have increased their basis points on all interest schemes.
Now
even fixed rates have increased because of the notification besides floating
rates.Fixed rates are easy to calculate the EMI for entire period of loan.When
the rates are falling it is advisable to go for floating interest rate but fixed rates are always
better to make a commitment from your lender for entire loan period.
If you are in negative
list
Some
of the home loan financers have undeclared rule for disbursement.They do not finance film artist,TV artist,
police, journalist, politician their own
employees, self employed who do not have bank statements or any person which
they feel that he can influence his position to not to repay the loan.They will
entertain you and take all the papers and administrative fees and will give a
stupid reason for regret.So it is
better you approach banks who have no income proof scheme or no guarantor
scheme.
Elephant tusk
Many home loan financers will advertise for less interest rates, but when you
approach them they will ask for more interest rates giving reason that you have
weak income generation plan.And there
is high level risk if they finance you.
Documentation
Some
of the financers have their own model set of documents which they want you to
fulfill.For example,NOC from society.Often society refuses to give one sided
NOCs drafted by so called learned advocates, who wants nothing but everything standing
on the society’s land.Leave the financer immediately because it will never
finance you without the papers.Check their list of documentation before you pay the processing fee or administration fees.
How far DSAs are
responsible
DSAs
are responsible till they give you cheque from their principles.After that they simply forget you since their
role is over after handling you over the loan amount.They are just agents who
want to solicit business and make every attempt to satisfy their principle
company.After sales service cannot be
expected from DSAs.It is just you and
your financer, then.
Specific requirements
If you want to purchase property from your relatives or purchase rights of your
co-successor then it is very difficult to make financer understand the need.Often,
businessmen mortgage the property and take business loans to pay their
commitments. Home extension and
improvement loans also require same type of documentation with higher interest
rates.
Past record of the
financers
You
must have read about the re-possession of vehicles or credit card recovery by
some of the banks employing notorious elements for the purposes.The management
is the same for all types of loans.The policy of the financers and
goodwill among the borrowers must be rated before you shake hands for a long
period of loan.
Early repayment
If
you are paying early or shifting to another structure of low interest rates or
just shifting your loan borrower itself then there are charges levied by the
lenders.It goes up to 5% of the loan amount.Shifting of loans from one lender
to another also is very cumbersome process.Your old lender will never want you
to leave hence delay tactic will be applied to give back your documents or
missing important documents from the file.
Make
sure to take acknowledgement of all the original documents you hand over to the
lender.
For more details,
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