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09 January 2011

The Many Illegal Constructions and Home Loans

Home loans are easily available from many financial loan lending institutions. There are offers and discounts and very special best deals for home loans. Hence the borrower now has many options and is faced with lots of choice for selecting the best home loans offered by the lending institutions at best interest rates. Now if the construction is not legal and does not have all the required permisssion documents for construction than it becomes difficult to avail a home loan. Builders have become very alert and they only offer loans on reputed builders and those constructions that have all the legal procedures and government critera fulfilled. If the construction or the site is debatable and the legality is under question there may come a stay order from the government and the project may get delayed or even completely stalled. Hence the loan lender loses on precious finance and also time. Many financial loan lending institutions have certain rules for offering loans. They only offer loans on houses from reputed builders. They also consider the previous history of the projects completed by the builders. The area in which the house to be purchased is also important. Some negative areas are not offered loans by certain loan lending institutions due to bad image of repayment of the loan amounts. Some institutions also offer loans for houses only in their respectable areas and avoid offering loans for unknown builders.
They have procedures for scrutiny for under construction sites as well as completed projects on housing. Only certain projects that have chances of completeion on time and from reputed builders are offered loans easily. Hence the indivduals repayment capacity is also one criteria for getting loan approved but also the selection of house from legal constructon is very important for loan approval.

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