Buyers Guide

BUYERS GUIDE

Ready to buy a home or a plot.? then read the guidelines below

Who can invest in property in India?

To invest in an immovable property in India, following criteria of people are applicable.
– Indian citizens
– Is not a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan
– A Person of Indian origin (PIO), who is an individual.

Who:
– At any time held Indian passport; or
– was himself/ herself been a citizen of India or
– Whose father or grandfather was a citizen of India

Who can apply for a home loan?

Any India Resident, Non-resident Indian or Person of Indian Origin can apply for a home loan if they are 21 years of age at the origin of the loan and 65 years or below at loan maturity. Housing Finance Companies (HFCs) usually give home loans for properties located in India to people who are employed or self-employed, with a regular source of income.

What is the Pre-EMI interest?

Before final disbursement, you may have to pay interest on the portion of the loan disbursed. This is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of EMI commencement.

Is there a fixed interest rate for the duration of the loan?

A rate of interest that is constant throughout the duration of the loan is known as a fixed rate loan.

Is there a difference between monthly rest & annual rest?

If interest rates are falling, a floating rate loan is a better option. But when interest rates are rising, opt for a fixed rate loan, because you will then know in advance what your EMIs will be.

How do I select my HFC?

Various considerations would help you zero down on the HFC most suitable for your loan requirements. Analyze the following points before taking your decision.

Loan amount: The minimum and maximum loan amounts vary between HFCs. Find out if the amount you require falls within this limit.

Duration: There is no lower and upper limit to the tenure of the loan. Find out if the time limit you want it for can be accommodated. This varies between HFCs. Normally HFCs offer loans ranging from 5-20 years, with some going up to 30 years. For NRIs the maximum tenure could be 10 years in some cases. Depending on your requirements, this would have a bearing on the loan you opt for.

Interest rate: This varies between HFCs. Fix a duration that you want the loan for and find out the EMI from them. Compare and identify the lowest EMI.

Pre-payment: Check if the HFC charges for repaying the loan before its due date.

Flexibility: Find out whether you can change your interest scheme from fixed to variable if so desired or if there are restrictions.

Guarantor: Some HFCs require this, while others don’t.

Documents required: These may vary between HFCs although there are a few standard documents like proof of income, proof of age and residence and a salary slip.

Co-owner: If there is to be a co-owner or co-applicant for the loan, the HFC has to accept the relationship between the two.

Other fees: Each HFC has different fees for administration and processing among others

Who will maintain the property?

The premises will be maintained by us at a very nominal charge up to two years or till the society is formed whichever is earlier. We are also in tie up with some property management services for your assistance.

Who is the appropriate authority of sanction?

This is a decentralized activity – the various panchayat union and municipal unions can accord sanction on behalf of the CMDA in respect of property located within their jurisdiction.

From where we can get information regarding the guide line value?

The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the guideline value of the property. This is also available on the internet.

How much loan can be obtained?

Up to 80% of the total amount is approved for loans at the sole discretion of the financial institutions.

When can a home loan be applied for?

An individual can apply for a home loan even before the property has been selected. The loan amount is sanctioned based on the ability to repay. This helps in planning a budget while purchasing the house.

What is a fixed rate loan?

A rate of interest that is constant throughout the duration of the loan is known as a fixed rate loan.

What are the other areas of expenditure before I get a home loan?

Processing and administrative fees, pre-payment charges and delayed payment charges, legal fees, technical fees, stamp duty and registration of mortgage deed are all likely areas of expenditure.

Can a loan be switched over if I have obtained it at a high rate of interest ,but another HFC is offering a better interest rate?

You could do this. After discussing the reasons with the current HFC, they may even reconsider the interest rate.

What does private terrace in a house mean?

Houses would be provided with open to sky area with access from within the House. This is called private terrace and can be used only by the occupants of that particular House.

In a sale of property, who has to bear the expenses of registration and stamps?

The universal rule is that the purchaser has to bear all expenses regarding registration.

How do we verify the genuinety of documents of the seller?

Regarding authenticity of documents, again, you have to take the help of an advocate to verify.

How does the lender calculate eligibility?

Loan eligibility is calculated based on the ability to repay. Factors such as income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration.

How do I repay the loan?

You can repay the loan in Equated Monthly Instalments (EMIs) comprising principal and interest. Repayment by EMIs commences from the month following the month in which you take full disbursement. Till then, you only need to pay the interest on the amount disbursed.

What is the floating rate loan?

A floating rate is when the interest rate on the loan changes according to the rates in the market during the period of the loan.

When can a home loan be applied for?

An individual can apply for a home loan even before the property has been selected. The loan amount is sanctioned based on the ability to repay. This helps in planning a budget while purchasing the house.

Is it better to option for a fixed or a floating interest?

If interest rates are falling, a floating rate loan is a better option. But when interest rates are rising, opt for a fixed rate loan, because you will then know in advance what your EMIs will be.

Is a guarantor required?

A guarantor is insisted on by the HFC so as to ensure that the loan is paid back in full and in time. The guarantor is responsible for the repayment of the loan if the borrower is unable to do so.

What is the maximum amount of housing loan available?

The maximum amount is 80% of the cost of the property, including the cost of land, subject to a maximum amount of Rs 1 crore

What is meant by approved plan?

The proposed building set in the form of a drawing has to be submitted for sanction by the appropriate authorities. Once the sanction is obtained, it is called the approved building plan.

In whose name of stamp/non–judicial stamp papers to be required to be purchased?

The non-judicial stamp papers are required to be purchased in the name of either the purchaser or seller. Generally it is bought in the name of the purchaser since he bears the expenses of registration.

What are the checks that has to be done while finalizing the house in the terms of building?

– Photo ID proof
– Address proof (Identity card, Passport, Voter ID, Driving License, Ration card – any one)
– Approved plan of the building along with the number of floors.
– Ensure that the floor that you are buying is approved.
– Check if the builder has the right to put up structure over the land-Either as owner or as a contractor.
– If so, check the title of the land ownership with the help of an advocate.
– Check that the builder is building without any violation of front setback, side setbacks, height, etc.
– Check specifications given in the agreement to sell.
– Check the reputation of the builder.
– Ensure that urban land ceiling NOC (if applicable) has been obtained or not.

Salaried Checklist

– Age, ID Signature proof of both applicant and Co-applicant (copy of Passport& Pan Card) Address Proof (Telephone Bill or Rental agreement).
– 3 Months latest pay slips with latest CTC.
– 6 Months Bank statements with 6 salary credits.
– 3 years Continuity Proof.
– Qualification Proof.
– Colour Photos with self attestation of both App & Co.App.
– Processing Fee Cheque initially in favor of “AXIS BANK LTD RAC PF A/C” – Non-Refundable. (0.50% + 10.30% S.T ).
– Age, ID, and Sign proof required for Co.App also.
– all documents should be self attested.
– No Fore-Closure charges.
– No Prepayment Charges.
– No Takeover Charges.
– Rate of Interest : up to 30 Lakhs 8.75% and above 30 Lakhs 9.25%.
– Property should be insured for SBA value for fire and earth quake or natural calamities.
– 85% funding of the property and Bank Valuation which ever lesser.