Home Loans –possible Hurdles and Solutions
March 6, 2010
A Home Loan is a long-term legal contract between a customer (home loan seeker) and the bank. Hence it is very important for a home loan seeker to be fully aware of all the legal terms and conditions that involve in the processing of a home loan.
A home-loan seeker may face several difficulties including certain legal issues in the processing of a home loan. He/she has to be very careful and must have a good knowledge of all the legal aspects pertaining to home loan processing. The following tips will greatly help you to educate yourselves in this regard and obtain a hassle-free home loan.
1. Home loans process starts with documentation. Documents pertaining to a property are of great value and play a key role in completing the process. So, a home loan seeker must be very careful when submitting the documents to the bank. Never submit any fake or unclear documents that may create confusion or misguide the banks; banks have every right to take legal action against those who misguide them.
2. The details that you furnish in the application form should not include any discrepancy. Banks make a careful study into these details, and if they find discrepancy, your application is certain to be rejected without any prior notice.
3. Retain all your receipts of the amount paid towards the credit card bills as banks may ask for the receipts of the payments once the details are found in CIBIL.
4. A panel of advocates will scrutinise the documents submitted by the home loan seeker. They will obtain the search reports from the concerned sub-registrar office to find out the details of deeds and the vendors pertaining to that specific property. If they find any discrepancy in the documents, banks will ask the customer or vendor for clarification or for other supporting documents.
5. Property that the home loan seeker intends to acquire will be evaluated by technical valuers, and if any find any deviations in the property, customer has to submit additional documents to support the deviations.
6. Upon completion of the entire process, vendor has to verify all his original documents with the bank official before disbursement of the loan, and the customer has to submit latest Encumbrance Certificate (EC) recording all transactions of the property in original.
7. Customer (home loan seeker) has to sign all the legal documents and the Home Loan Agreements in regard to the disbursement of the loan, and the property will be hypothecated to the bank till he/she repays the entire loan amount subsequent to the registration of the property. Customers are advised to carefully read the agreement copy before signing it.
8. If the customer fails to repay the loan, banks may appoint agents to collect the easy monthly instalments (EMIs) from the customer, and he/she has to co-operate with them.
9. If the customer gets defaulted, bank can seize the property to recover the loan amount; and once this happens he/she will be added into the defaulters list of the CIBIL (Credit Information Bureau of India Ltd).
Finally, it is advisable to take as less loan amount as possible so as to save the interest paid on the loan. Also, be punctual in repaying the loans to maintain a good credit history.
Home Equity Loans: Finance Through Your Home
February 16, 2010
There are many ways of getting loans. Some require you to pledge a valuable asset as collateral. This type of loans will not only grant you a large amount of money, but also charge comparatively low rate of interest. Your home equity is one of the assets that can be put up against these loans.
The equity of your home is its monetary value remaining after deducting any mortgage or claim upon it. For instance, if the real value of your home is £130000 and there is a mortgage of £75000 upon it, then your home equity is £55000. Loans which are secured against this market value are known as home equity loans. You can use for home improvement, auto financing, education or medical bills or a holiday. The choice is up to you.
Home equity loans are available under two schemes:
* Closed home equity loan- where the loan amount can be obtained as a lump sum and interest rate calculated according to this amount
* Home equity line of credit (HELOC) – where you can withdraw amounts as you need from an agreed sum of money. Rate of interest is calculated according to the withdrawn amount
Home equity loans come with their added benefits. You can take a loan amount up to 100% of the equity. The average range falls between £3000 and £100000. The repayment period can be extended up to 25 years. The interest rate is also low and tax deductible. You have thus an easy repayment arrangement that can be carried out in easy monthly installments.
Home equity loans are offered by various financing companies. Online mode will help you find the more profitable deals in a matter of minutes. Moreover, you can interact with your lenders from home with the processing free of cost and with less hassle.
The equity of your home can act as a savior when there is financial shortfall in your life. But do remember you are putting it at a risk. Therefore, exercise wisdom and prudence while choosing the loan amount.
Loan Against Jewellery
November 25, 2009
Secured Loans generally come from 3 places - You either get the loan from a traditional lender, like a bank, a nontraditional lender, like an organization dealing specifically in secured loans, or a small, local business, like a pawn shop. Each of these lenders has pros and cons, and each should be thoroughly researched (as with anything else relating to your finances) before you come to a decision about how to take out a secured loan.
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