Home Loan mistakes may cost very heavily on your pocket. I call common mistakes during Home Loan process as a Home Loan mistakes. Home Loan is a long term commitment and many borrowers take it casually. I personally feel that whatever impacts you financially should be taken seriously. In past, i have written similar posts like 8 Ques You Should Ask Home Loan Provider. This post is different and related to the behavioral aspect of a Borrower which is equally important. Unfortunately, Home Loan mistakes cannot be corrected in most of the cases. The reason being, there is a time pressure on a ... Read More
Is Your Home a Collateral for Other Loans?
Collateral means to pledge an asset as a security against repayment of a loan. A collateral can be forfeited if there is a default on the loan. When you take Home Loan, you pledge your Home as a collateral for repayment of a Home Loan. But what if bank say that besides Home Loan, you have to give your Home as a collateral for any other loan or borrowing from the bank. On top of it, you also provide the commitment that this clause will cover all the past, present or any future borrowings from the Bank. Sounds Scary !!! But it is TRUE. Knowingly or Unknowingly, whenever you avail Home Loan, ... Read More
Property Title Search – Who is Responsible?
Bank has done Property Title Search, Why should i waste my money on same?. This was a reply from one of my clients when i suggested him independent due diligence i.e. property title search. Fair enough but can you rely on Bank's Property Title Search?. The answer is Definitely NO. This was proved beyond doubt when today one of my client along with other buyers lost long-fought court case in High Court against one of the leading banks. It is very sad for me as my client is on the verge of losing her lifetime savings and suffered a major financial setback. The case was fought between 3B's i.e. ... Read More
8 Ques You Should Ask Home Loan Provider
Home Loan Provider in India is normally finalized based on the reference or word of mouth. There is no harm in taking references or feedback from friends and family members. It helps in better decision-making. In most of the cases, it is the builder who decides Home Loan Provider of a buyer. He has vested interest in this entire process as builder receive cut or commission to promote particular Home Loan Provider. Secondly, he doesn't want you to initiate Title Search or Legal Check Process again. Some of the common tactics of the builder to pressurize buyer are Documentation, Payment ... Read More
Truly Fixed Interest Rate Home Loans
There are 2 kind of people i.e. Risk Taking and Risk Averse. Risk Taking people invest in Equity, Mutual Fund etc whereas Risk Averse people invest in FD's, NSC, Debt Instruments etc. Majority of Indians are Risk Averse as they would not like to part away with their hard earned money due to volatility. They prefer low return but risk free debt investment tools. In short, Risk Averse people don't like uncertainty and prefer assured, stable & predictive path. This is the reason, why debt instruments are more popular compared to equity. While availing Home Loan this majority class of Risk ... Read More
How to Buy House with Home Loan
To Buy House with Home Loan is quite tedious & exhaustive process. Buying a house itself is a major financial decision. Some people delay this decision as they would like to buy their first property from own funding. Best bet is to buy house with home loan. Reason being property prices keep increasing and secondly, during the later part of life financial commitments will increase. When i bought a house, i struggled to understand steps to buy house with home loan. After going through this cycle, now i am in a position to explain step by step process how to buy house with home loan. Step 1: ... Read More