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
Secured Credit Cards – Repair CIBIL Score
Secured Credit Card is a Blessing in Disguise. Why i said this because Life is unforgiving and so as Poor CIBIL Score / Credit Score. Once an individual is in this sad situation, it is very difficult to come out. A borrower is at the mercy of a lender for CIBIL Score. There is no place for human emotions in the mortgage industry. In many cases, i observed that there was "No" intent of a borrower to default on payment. Such a default is also known as non-willful default. The irony is that both willful and non-willful defaulters are being beaten with same the stick. In case of non-willful ... Read More
Basic Checklist for Under Construction Project
Buying a flat in Under Construction Project can be linked to the Indian psychology of buying a "NEW". Under Construction Project is a high risk investment as the legal status is yet to be established. It also co-relate to the fact why prices are low during the pre-launch offer. At this stage, nothing is in place. In fact, in many cases builders sold the flats even before he signed the joint development agreement with land owners. I highlighted pros and cons of Resale Flat and Under Construction Project in my post on Resale Flat of Under Construction Flat, Which is better?. It is imperative to ... Read More
5 Golden Rules of Home Loan EMI
Home Loan EMI is an important part of borrower's life till Home Loan is closed. Entire family think, eat, drink and sleep Home Loan EMI. I mean to say, all imp decisions of family revolve around this income "guzzler". As home loan is long term commitment therefore we come across various situations and turning points where we don't know how to handle Home Loan EMI. Any mishandling can have long term financial implications. In this post on "5 Golden Rules of Home Loan EMI", we will discuss 5 such imp rules which should be guiding light to decide. Rules for Home Loan EMI 1. Home Loan EMI as a ... Read More
How to find out Right Home Loan Amount?
What is Right Home Loan Amount?. There is no right or wrong answer to this question. Both under borrowing and over borrowing are dangerous for financial health of an individual. We cannot ignore this question because it directly impacts your interest outflow. Three important pillars of Home Loan are Monthly EMI, Home Loan Tenure and Home Loan Amount. All 3 are interlinked to each other. I have not included Interest Rate as Interest Rate is not in control of a Borrower and is fixed. EMI, Tenure and Home Loan Amount are variable and optimum mix can be calculated. To influence any of these, ... Read More
How to read CIBIL Score and Risk Index?
How to read CIBIL Score and Risk Index is one of the most common query from my readers. In layman terms CIBIL Score is nothing but risk assessment / credit worthiness of a potential borrower based on past credit history. Though CIBIL Score and Risk Index is the 1st level shortlisting criterion by the Mortgage Lender. Executives of financial institutions who have access to this data are not competent enough to explain the CIBIL Score / risk index to borrowers. It create panic situation among borrowers. Recently one of my client called me and told that his consumer loan is rejected because his ... Read More