Due to the increase in the real estate prices people are in the situation of buying a home from a reputed builders or build their own homes. But unfortunately all of them don’t have enough funds to move next step. In that case, the first option for them will be getting a home loan. Not everyone will be successful in it; there might be a few cases where these loan can be rejected. So today we thought of discussing about an important issue “Rejection of home loan and how to overcome from it”.
Reasons behind home loan rejection & how to overcome from it
Applicant residential address on the defaulter list:
There are chances that home loan can be rejected if the applicant address is been listed in the defaulter list either for loan repayment or credit card dues and that has been reported to CIBIL.
This problem arises not because of the applicant, maybe because of the person who lives in the same address before him/her. So in that case discuss the issue with the relationship manager and try to bring the attention that the applicant is not related to the applicant no more. In case the defaulter happens to be a family member, then the applicant has to stress that the defaulter is not dependent of the applicant.
Applicant profile doesn’t fit into the banks policy:
Every bank has its own internal policies. Suppose say some geographic locations & credit profile is listed in bank’s policy guidelines on negative lending. In that case there are high possibility of your loan is getting rejected.
Discuss with the bank officials and provide security is any other forms like Fixed Deposits, collateral securities etc. Also assure the bank about the repayment ability.
If the applicant loan has been rejected before:
If the applicants loans has been in rejected list with the bank, then there are chances that they may blindly reject loan to you the second time. Take out the loan proposal and review it and the bank might have told you the reason. try to fulfill any irregularities and short coming in the load proposal. Discuss with your well wisher, ask advice and opinion. You can also take tips and suggestion from experts in that field
We are looking into the current scenario on housing which has been affected in 2011 by the marginal increase in housing loan rates. Having enjoyed the boom time and teaser loans for nearly a couple of years, the home loan customer is now confronted with decreased loan components and increased home loan rates, however small the increase may be.
Interest Rates in the loans for a home depends on the quantum of loan one would want to take. The tenure ,buying a new home or purchasing a plot and constructing ,the profile of the individual and his credit history are the major determinants in the quantum of home loan.
Different lenders follow different methodologies.
A) FIXED HOME LOANS WITH A RESET CLAUSE :
Here rates are fixed for an agreed period and revised thereafter. These have small 2-5 years as a fixed component and are more reasonable to the borrower.
B) FIXED HOME LOANS WITHOUT A RESET CLAUSE :
The interest component does not change for the entire tenure of loan. They are the most expensive kind.
C) FLOATING RATE HOME LOAN:
These rates may change at any point of time with the borrower’s EMI changing as also his privilege to change the quantum of loan. They are linked to the Bank’s Base Rate and change over periods of time due to a variety of factors.
Not to worry, because the average middle class Indian is always in a need to add a home to his asset base and this could be the best time to do so for a variety of reasons.
While Europe’s Banks are in a lending squeeze and American housing has been witnessing a down trend for the last several years, the Indian situation is vastly different and healthy because the substantial borrower’s contribution has been a significant hedge in any home loan transaction in stark contrast to low borrower’s contribution component in the USA.
Besides the removal of the foreclosure penal provision that the RBI has sent in its latest circular to Banks is a boon to many existing borrowers and an assurance to the current borrower that he will not unnecessarily lose his money should he chose to repay earlier than scheduled .
Strengthening the position of Bank lending out of concern following excess flow of banking funds the RBI restricted the Home Loan to 80% of the cost of property. But otherwise, the Government has taken supportive view on home loans in tandem to its commitment and has continued the teaser loans till March 2011. SBI ended its teaser rates from April 30, 2011 and other lenders followed suit. Coinciding with a hike in the BBR in May 2011 , SBI dropped the prepayment charges on home loan schemes- a small savings for the buyer. Currently, the interest rates have stabilized at 10.5%. With inflation under 9% and low economic growth rate, no more hikes are expected for the next quarter. Many banks have come with renewed attractive fixed schemes for 1-5 year periods.Conversions have been made relatively hassle free.
The SBI Home Loans have a major advantage in that they use the daily reducing balance method, have very low processing charges, have no hidden costs,minimal or negligible administrative charges,no prepayment penalties and a wide net work of branches to chose from.
Over all, the scenario promises to stabilize itself in the foreseeable future and the best time to buy your home could be now.
In the booming Indian economic landscape, everyone is a real estate player. But we know that though flooded with choices, discerning buyers will soon sift the men from the boys, the wannabes from the true blues. And it is with this in mind that MARG ProperTies has groomed itself into a sharp and future sensitive corporation that offers a whole new perspective on real estate.
This is a first of its kind initiative by MARG ProperTies where home seekers can join in and pray together to be blessed with their dream home. There will be nine 30 to 40 minute sessions between 7 a.m. and 3 p.m.
There will be various poojas such as Ganapathy, Vaastu, Navagraha, Sudarshana conducted at the venue. Well-known poojaris from Chennai will be performing this pooja. Prasadam and refreshments will be served to all the guests. All are welcome! If you have family or friends who are looking to buy a home then you can bring them along so that they benefit from the poojas.
This is an absolutely free and open pooja where one and all are invited to participate. MARG ProperTies has taken many initiatives to stay connected with people and GRIHA PRARTHNA is one such effort.
To avoid rush, kindly register for the event. Call MARG ProperTies at 044 – 42525252 or simply visit www.margproperties.com. There will be spot registrations too, however prior registration is recommended to avoid rush.
Are you in the process of buying a property in Chennai? If yes, then you might want to know how to register a property in Chennai.
Once you have shortlisted the hot property that you want to own, then the next logical step is to enter into an agreement for sale with the seller/residential builder. The agreement for sale is between the seller and purchaser. The deed must mention:
·Father’s name: example, Mr Praba, son of Mr Shanmugam Illangovan
·Advance amount paid with details of cheque number/demand draft number/cash paid
·Balance amount to be paid and various other details
Please bear in mind that the final sale deed completes the sale transaction. Who can draft the deed? An advocate, licensed document writer, or a chartered accountant who has a document-writing license can draft the sale agreement.
Only licensed copywriters or licensed typewriting copywriters must prepare the document copy, also the copy sheets sold by the registration department must be used. Cost of each copy sheet is 1 Indian rupee. There is a fee that you will have to pay for document writing and the fee is prescribed by the government.
When can you register? The registration must be completed within four months of the execution date. This timeframe is not applicable to wills. If you are unable to register within the prescribed timeframe then you can pay a fine and complete registration at a later date. The percentage of fine varies depending on the time delay.
Where can I register the property? Registration with the relevant district or sub registrar’s office is mandatory. Documents needed for registration are: Stamped, signed and executed deed; required registration fees, duplicate registration fees, sub division fees, etc. It takes about 3 days for the documents to be returned.
Please note a list of stamp vendors is available with the registration department of Tamilnadu. These vendors a re licensed to sell stamp paper at face value and commission to the vendors is borne by the government. Stamp paper is also available at the Sub Registrars’, Treasuries, and Assistant Superintendent of Stamps, Chennai. Stamp duty can be paid as cash or demand draft.
The overview of property registration in Chennai will give you a better understanding of the process!