28 November 2011
Home loans being of very large amounts and going on for many years as compared to any other loan one needs to know about the facts and information regarding the laws involved during this loan repayment tenure. Many people are faced with the dilemma of not understanding the laws involved in loans and in case of default and unable to pay back an EMI on time leads them to pay heavy penalty and humiliation.
It is but natural that not all borrowers are lawyers and also not everyone would be aware of these facts. Usually in the beginning of purchasing a new home and applying for a home loan the borrower and their family are so involved in the selection of a best home that many points are not even given a single thought. This is life and though you may not be a defaulter but in life there may come unexpected circumstances which could lead you into trouble. Salary delay or unexpected illness in the family or hospitalization or accident of any member, sometimes other incidences though not very serious may give unexpected pressure on your monthly budget.
Any borrower must first enquire about the rules and regulations of the housing finance company. The lenders agreement clauses and terms and conditions must be read and reread carefully before signing on the dotted line of your home loan approval. You must not be ashamed to ask questions and clarify about the loan repayment tenure with your home loan representative of the housing finance company. There are special lawyers and consultants who can answer all your queries and in fact many housing finance companies have their own lawyers and counsellors who can guide the borrower with legal procedures and details.
You can also take help from private lawyers and legal counsellors and understand your benefits and concessions that may be allowed as a borrower, during the loan approval and repayment period. Why is it so important to clarify all documents legally? As the home loan would go on for say, about 15 to 20 years or more you must try and analyse your expenses that will rise accordingly. As you select a home loan repayment package try to be realistic and though you can accommodate for any rise in salary also do keep the x factor of unexpected finance pressures.
Legal advice need to be taken on following points in home loans-
First of all is the property of clear title. The land must not be an agricultural land as transfer of this would cost you heavily later. This must be clear on paper that the construction is done on non-agricultural land.
The house you have purchased must have clear title. Many people are duped with the same number of flat on different buyers. Such fraud can only come up when a legal advisor is at hand and they can guide you about this before hand. This will save much hassle later on during your loan repayment tenure, where you may also risk losing your money as well as your flat.
The area of your flat mentioned in the title deed can also be clarified with the help of a legal advisor and you can get a home loan according to your area be it carpet area.
The accounts and reputation of any lender can be gone through their yearly financial report and all this can be done by the help of an legal advisor as there are many terms which the lay man will not be able to understand.
In case of loan approval all the document written and verified would be better under legal counselling and advice.
Loan repayment tenure will involve situations of failure to repay an EMI on time and also sometimes to club payments and pay lump sum together. All these issues can be sorted out and clarified with the help of legal advisers.
The procedures adopted by the housing finance company in case of default and what procedures they adopt for loan recovery are also very very important aspects that can be clarified before hand during the beginning of your loan.
Do take legal advice before proceeding with your new home loan and help to make the repayment journey of your home loan pleasant and smooth.
16 November 2011
When you begin searching on the internet regarding any topic especially home loans you will get loads and tons of search results within few seconds. What you are searching for and what you get may be totally different. Usually search engines will pick up important key words and give you the results. It has been very often observed that whenever you try to search using any famous search engine for information on home loans you get international sites and usually international home loan information which is either not relevant to you or outdated.
For this you have to learn to use a search engine effectively and find the right information on home loans.
It is important that you mention few important key words and then continue your search for information on home loans. Since the web world is very huge and has a lot of information it is advisable to be more specific in your search words and try to define as clearly what you are searching for. Example if you are searching for cheapest interest rates from any housing finance company if you use the same terms you will get many results along and similar to these terms. The search engine will pick up all words you have used and give you the many results together.
You must learn to use search engines effectively for getting the right information on any topic especially finance and loans.
Try to use specific terms like name of the housing company and their home loan facilities. Then you will immediately be directed to the main company website and you can get detailed information on home loan and the special offers the company is giving. Be specific in mentioning your country name or the place or city you wish to find information from. Search engines are made for the benefit of the customers but knowing the right way to search for any information is very important to use any search engine effectively. You can increase your knowledge on any topic and especially get right and correct information regarding home loans and the terms and conditions and this will help you to search the internet and be an informed borrower before committing to any home loan.
The main problem with using any search engine is that it does not understand the language we sue and as humans we understand the relevance of any term. The search engine will only and specifically consider what terms and key words you have used and may or may not use the completed sentences along with terms like and, with, as etc. Hence many times the total meaning of any word will change and if you are searching for something you may not get the desired result form your search results. Just putting down general words like home loans will not give you the right and correct information on home loans. You will have to specify what you wish to search for with home loans and what you wish to keep aside.
There is no place for commas and capital letters as the net language will only see words and alphabets. You will have to use correct words and phrases and the most similar search results will come up. Usually there will be many different pages that will have your words in them in some form or the other and many times all pages may not be relevant information on home loans for you.
By trying various important key words and trying out different combination with words on home loans you can get the right information you are searching for regarding your home loan. So try to be specific and also mention few important key words that relate to the topic you are searching for and enjoy and use the vast world of information and knowledge at the global level.
The most important benefit of the internet comes in terms of buying and selling. What more information can be beneficial than regarding finance and that too regarding home loans.
Online Searches for right information on Home Loans will give you the required information right from your home and you will be prepared with meanings of different terms and clauses that your lender will be suing during the process of your home loan application, home loan processing and home loan approval as well as home loan repayment.
The internet search engines can effectively increase your knowledge and as we all know knowledge is power you the borrower can be a well informed borrower and also make the right decision regarding selection and finalizing of any housing finance company and your home loan.
One of the best advantages of searching information on home loans before making any decision is that you can go through various personal case histories and also personal experiences of people regarding home loans.
All the information that will take you ages to find and you may still not find the correct information is all available on the web and you just need to use any search engine to find out latest information regarding home loans. This information will help you to understand finances well and also important decisions that go along with your home loans.
Learning about facts on home loans you the borrower, will be able to understand the long term decision regarding home loans and also the facts and decisions that go along with your family and other expenses before taking any loan.
By viewing websites and service centres of any housing finance company or lending institution you will get to know how they offer after services and also what personal experiences people have when in case of emergency or failure to repay their EMI on time. Case histories regarding home loans are an very effective means to finalise any financial housing company for applying a home loan.
The web being the first and easiest place to find and collect any information on anything well, almost anything, you are faced with this search on home loans with so many confusing websites and bombardment of loads of information. Getting confused about hem loans is a fact and you will not get the correct information unless you learn to sue the search engine effectively and wisely. Searching information on home loans is a very vast topic and the most important at present if you are a prospective borrower who is searching for the best deal regarding home loans.
When you will use a search engine like Google or Yahoo or msn or in fact any search engine you are comfortable with you will get loads of selected information which will confuse you and lead you nowhere with the information you require regarding home loans. Finance being a very hot topic people wishing to find in formation regarding home loans are getting all sort of information in their searches from any search engine.
If you wish to find out about any specific company or interest rates with which you can avail a home loan you will need to be more specific in your searches. Along with simple statements and few more added words to your search word you can get total information regarding home loans and that too very quickly.
Search engines are only good to increase your knowledge regarding any topic and for any financial dealing you will be better off to go personally and do the talking. With online home loan calculators and other services offered by any financial housing company you will be easily getting some basic quotations and figures online regarding the amount offered as home loan and their eligibility criteria for approval of home loans.
Using search engines for finding information on home loans will give you the power to negotiate and get a good bargain when you will personally take the final step of buying a home and going in for a home loan. You can also effectively bargain when you are familiar with most financial terms which you can learn form the internet in advance before making any final commitment and getting your home loan approved.
Searching on the internet for any information and we all know that instantly that we are given so many options with the information that many times it seems like an over dose of information and even though you have so many websites offering you information you may not find the right and correct information that you are searching for.
Many websites will offer you tips for effectively searching the web and with Google offering you a handful of important tips here I quote few practical and personally used and effective tips for searching the web effectively. For getting maximum and best benefit from any search engine you must first be specific on what you want form the web. Many times it has happened with me that I begin searching for one thing and end up reading on some thing other, much far away from my topic.
It is very important that you understand the principle on which search engine works. It is not a human being and the internet will not understand what you want. Each word and each command to the search engine will give you the specified results that you desire to search for. By learning how to use a search engine you can get the information within few minutes rather than hours you will need to spend on the internet for finding simple information on any topic e.g home loans.
Use important key words for searching on any topic. Key words are the most important for any effective search and getting right information from any search engine. Using commas and dash are other very important aspects so that you make clear what you are searching for example home loans would be a very general topic and you would not get the information what you are searching for. Using some specific terms would help you and get good search results like using interest rates, housing finance companies or even using specific financial websites addresses and names for getting specific information form an search engine.
Remember to use commas and dash and try to use fewer words first and then you can add more specific words to your search list. But remember that the search engine will not understand your sentences and terms. Even using capital letters or block letters will not make any difference on your search engine. You will have to learn ‘net language’ or ‘search engine language’. This is a term I have penned and become synonymous with because I have had a hard time with finding the right information on the web! Your slashes and your commas will not do any thing but a simple right word will give you the exact information form your search engine searches. The The’s and the at’s and the with’s will move away and the search engine will only pick up few words, so make the right choice for using any search engine for quick and correct information especially regarding home loans.
Begin searching for home will be a physical task later on which first begins with online searching about information on home loans. People are generally more comfortable with using search engines for finding information on any topic and even home loans top the charts.
All your friends and relatives and acquaintances will have a list of financial loan lending institutions and each will also have a story along with this list. It is good to share their experiences and also learn form practical tips but every home loan borrower must try to get the right information personally from the web. The internet has a vast collection of information regarding any topic and you can get so much info on home loans using any one or many search engines.
Decide the home you are planning to buy and the amount you can keep aside to repay the home loan. For this you can use words of the specific builders or latest constructions in the area you have decided you buy a new home. The search engines will immediately give you ‘n’ number of information and you can select from the long list of articles and websites regarding the home loans. Type general words and then specific words and terms regarding finance for homes, home loans, housing finance companies, home loan lending institutions and home loan calculators online and their use and begin with your search for information on home loans. Also find interest rates on home loans and offers from different housing finance companies by using specific terms in your search engine bar.
Using many related searches you may also take few hints form the search engine and tips that the selections advice which will lead you to further specific information websites which you can brush up for searching on home loans on the internet.
Many people who search the web daily and use search engines effectively for getting information are at a tight spot regarding home loans and the information available on the internet. It is all but natural when you decide to go in for a home loan you will first brush up your knowledge regarding loans in general, and home loans to be more specific.
Then begins the web search which will become time consuming and many times you will not get the right information or the information you are searching for on home loans. Here I note down few important tips for searching about home loans using a search engine effectively and these practical tips will give you the right information from the web in less time and with few searches.
Select the best search engine that you are comfortable with. Many people like to use some or the other search engine and are comfortable with any one or two search engines. With Google topping my list among search engines we have Yahoo search and msn search which are also very good and effective search engines. Leaving these few there are many other search engines that you may be using and familiar and comfortable with on the internet.
With searching information on home loans the most tricky part is that you get so many results instantly that you are over whelmed with the numbers. This may seem confusing at first and may sometimes also leave you without any information after searching the web for hours.
Use of correct words for using on search engines is very important to get the right information on home loans. You will first need to be familiar regarding terms like finance, housing companies, availability of home loans, home loan lending agencies, housing construction projects and of course housing finance company profile information.
Think and become familiar with these simple financial terms used on the internet financial websites and terms regarding home loans in general and then you can use specific searches for getting the information on the home loan you need.
Home loans being the most searched for word on the internet many people need information, and the right information regarding the same. Many people dream of owning a house but cannot afford a good place within the means of their income. Home loans come as a boon and the first important step begins with searching online for information regarding home loans.
When you begin the search for home loans the most common word you begin with is by typing home loans in the search engine slot. You may be familiar with different words and phrases regarding home loans and also your information and doubts will take way when you begin searching for information regarding home loans. Simple words and terms which you may have heard and do not know the meaning will be the first in search engine terms and as you go about searching for information on home loans you may come across various financial loan lending websites and also various housing finance company websites that will give you information regarding home loans and their services offered.
Usually there are many international websites that have more information regarding home loans on the internet. You may have to be specific in searching the web for right words and locations where you need the information on home loans. This may be time consuming and tedious if you do not get the right websites and the right information on home loans and general information on the same.
Some important clues for searching on home loans to get information on home loans online would be very useful for the internet searcher on finance. Be specific in using words on home and home loans also and use simple words for the information you need. Target your information on the area where you stay if you need that particular information only. This will help the search engine to remove unnecessary information and give you the best searches for you topic. Typing only home loans would not give you all the information you need and you will have to add specific words and terms along with the home loans word to get more information.
Home loans are available at a high rate of interest and the borrower has to pay back along with the principle amount the amount added as interest in the EMI. As the rates of property are very high so does the loan amount keep increasing and becoming larger and larger. With trends since many years regarding home loan borrowers it has been noticed that the intelligent borrower is always in a hurry to close down his home loan earlier than the repayment tenure in the home loan agreement.
Why is this trend going on and still all borrowers of home loans are waiting for any opportunity to close down earlier than the total repayment tenure date given in the agreement. Many times there is also a prepayment fees and penalty fees for closing down your home loan earlier than the predefined loan tenure but still people who have borrowed large sums as loan try to repay the loan earlier and as soon as they have extra funds or money in any form as bonus, increment or rise in salary.
Your EMI will have the principle amount along with the interest amount and this makes up the total amount of your EMI. Monthly, you as borrower of home loan have to shell out this amount regularly for say 15 to 20 years. So as the loan tenure progresses, so does the interest rate increase, and in the long run, this home loan becomes difficult for you to be committed for a large repayment amount. This not only creates undue stress but also sometimes becomes a burden to give away precious finances in way of interest to the housing finance company.
An intelligent borrower will first and foremost enquire about early prepayment and closing of the home loan and their terms and conditions. Before you commit to any housing finance company it is advisable to enquire about the prepayment and closure of loan rules and processing and penalty fees involved. Since most companies have a minimum 2% of extra fees this amount may vary from lender to lender.
As time will progress you may get additional bonuses and perks or unexpected rise and if you can collect the remaining home loan amount then it is best to repay your loan and take possession of your home documents at the earliest. You will not only save precious money which would have otherwise gone in terms of interest but you will also be free and have ownership title of your flat.
Present home loans scenario is still before the storm. With so many financial housing companies offering and offering perks, facilities and concessions still the market trend is not getting the right push. people wishing to buy ne homes and applying for home loans is going on a snail pace movement. Many financial institutions have come to terms with the losses they have to bear with unsold flats and lots of stuck up finances in their new constructions. Why are so many flats unsold and why did the festival season not bring smiles on the faces of satisfied sellers and satisfied buyers except for a few?
The home rates are shooting the sky and the common man still cannot afford a good house. With so many articles in the media it is a well known fact that homes are built only for the rich and upper middle class. The majority homes constructed and built target only the upper end of the financial circle and there are hardly any or in fact very few budget homes available. People are not having any in-between option to purchase a new home or go in for investment in a second home.
With property and home rates ranging from fifty lakhs to one crore and more for the same one bedroom hall kitchen flat is over whelming and important to note at. Are the salaries increasing at the same rate and are the finances improving at the respective percentages as home loan rates? You end up with paying a huge sum as interest and buy a home which when you go out to sell will give you only the amount for area rate of your area. The amount paid as interest will not be accounted for during selling your flat, which we all have understood.
The prime lending rate increasing faster in few past months has led to increase in rates for offering loans by all financial loan lending institutions. Builders blame government rules for delay in approval of projects and approval of loans. But finally the home loans and home buying scenario is moving at a snails pace with only a few committed buyers and home loan borrowers.
People are waiting for rates to drop but there seems to be along wait without any hope. Rates will not drop any further and will only go on increasing except for a major inflation crises, and that will also affect the borrower. So when your homes will become cheaper due to inflation and you will be happy for getting homes and home loans at cheaper rates so will your finances become lower and again the same situation will go on!
04 November 2011
It is but obvious when you go in for applying for a home loan that the lender will first view you very critically and carefully. Why? You have a good job, you and your spouse may both be working, you may also have a vehicle of your own, but still whenever you first go and ask for a loan you are under the hammer!
It is true that you may be financially secured and has your finances in place but the lender does not know this. For them you are another new borrower whom they have to view critically and judge about your financial repayment capacity and long term decision of a home loan. You will be asked so many prodding questions, which you feel may look irrelevant to your loan , but the lender here is trying to judge your financial habits. Your financial habits means your spending habits, whether you are lavish and extravagant in spending,, whether you are practical in spending. This will help them understand your financial habit, whether you are the saving and sparing type or the extravagant and emotional spender type. You also may need to answer questions regarding your family members and earning members in the same along with the number of dependents. All this may look irrelevant now but imaging over the years since home loan is a long term commitment the lender only needs reassurance that you will sincerely pay back the loan amount on time.
You may need to answer questions which may seem personal like when did you join your job, since how many years you have been working in this company and how many jobs did you have in the previous years, that is do you job hop often or you are steady on your job. All this will help the lender understand your financial habits and commitments and as they enquire about your other loans and home expenses they are just trying to converse with you to understand you financial position and repayment capacity. They want to understand that you w ill be committed for loan term , if the case of joint home loan then they will consider both you financial background and qualifications as well as your parents financial history.
They are just waiting to understand and bet upon you and looking for that one element that you can repay the amount taken as loan, along with the interest amount, and that too on time! and you get your home loan approved in no time.
How do you prioritize home loans? What criteria would the common man go in for ranking home loans? Here we discuss a few pointers in selecting your best home loans. With every financial loan lending institution having different rules for landing along with different interest rates with which they offer loans it is the borrower who has to gain right information and come up to the best home loan for him.
The housing finance company that needs less documents and you fall into their eligibility criteria. That is the documents that you can provide are what the company requires as proof to approve your home loan. Here we know that every financial loan lending institution has different eligibility criteria and if you do not fall into this category there are fewer chances of you getting your home loan approved. Apply where only you fit to avoid rejection of your loan application. Point given here, for the institution where you are eligible for a loan.
Interest rate with which home loan is offered is the most important but not the only criteria for ranking a home loan. Get the lowest interest rate for your loan amount. Point given here for lowest interest rate on home loan offered.
Higher loan repayment tenure will give you more time for repayment and in case you have increased finances you can always repay your loan sooner. This longer repayment tenure will increase your monthly EMI amount to what you can manage easily.
No prepayment charges and penalty for early closing of your home loan many finance companies do have a 2% charge on closing of your home loan before the loan tenure.
Transparency in service offered by the housing finance company is one of the most important criteria for selection and ranking a home loan.
Finally an important note to look at other people’s experience by talking to your friends, relatives and colleagues regarding their experiences with the lending institution and also their responses in case of default or failure to repay the home loan on time. This is the most important criteria for ranking a home loan best is by their after service or customer help services offered by financial loan lending institution. .
Sit down and jot all your income and expenditure in a realistic manner and then begin with your individual case. Every aspect will differ for different people and what finance company and home loan is first rank for you may not be first for another. So go in a realistic manner and rank your home loan housing company and then select your first home loan.