Home is the biggest asset and home loan is a biggest liability. According to the research, Home loan closure is consider to be the thirst happiness of human’s life. 1st is Job, 2nd is love and 3rd is home loan closure but if you don’t follow and accept given by the banks or companies, then your happiness may turn into sadness. Here you will get the home loan details terms which you must be familiar with.
Terms you must be Familiar with:
1. Downpayment: When you take a loan, the home loan company will not put up the entire amount. But it will only put up around 80-90% of the cost of your home. You must keep 10-20% of the house amount in balance. Even if the bank goes upto 96%, you will still have to pay the rest 4%. So this amount will be called as downpayment or margin.
2. Resale: This is a term of home, when you are buying a home which is already build and who already owns it and selling it now. So, now he is known as the resale person. It completely indicates that you are not buying a fresh new brand home straight from the builder or the building which is under construction.
3. Credit appraisal: When the home loan company will have a look at the number of the parameters before the loan is sanctioned. All your savings, income, age proof, nature of work, qualifications, and work experiences will be checked by the companies. By taking all these issues into account, they will determine whether you are eligible or not for the loan and they will also look into how many loans you are having currently. After checking all the information they will sanction your loan live.
4. Full Disbursement: It is when the entire cost is paid at once, and the home loan company hands over the entire money to the seller directly. Cheque is disbursed only when you submit your every documents and after paying the downpayment and if this is resale then the cheque is made with the name of the seller. Suppose, if you are purchasing your home from the builder, then it will be in the builders name.
5. Pre–EMI: When you tries to buy a home which is under construction, then the company will not pay the amount to the builder and payment will be made in stages, As the construction completed, then payment will be released. You will have to start paying the EMI after the final disbursement and till then you can pay the home loan to the company at a rate of interest on the total amount. If the home loan you are taking cost 5% as an interest then you will charge only 5% as simple interest on the total payments upto the date. This will continue till the final payment you pay. So the more it takes long time, the more you will have to continue giving the interest.
So, before buying or taking the home loan you must be familiar with each and every terms of the bank offers. Make your life set by building your dream house and stay happy, with your family building your own beautiful house.