Simplified facts and practical information about home loans in a simple language while avoiding the technical jargon associated with it! I was confused with Finance in Home Loans and this Blog is an simple expression! I am a Healing Artist, and not attached with any Financial Commercial Institution and am not responsible for any financial links posted Take care and surf information before committing!
Home prices have been slashed- the Facts for Today’s Buyers by 10% to 30% and the headlines in the media have sure come as a welcome gesture from the builders and housing finance companies. With home loan rates going on increasing and with so many houses left unsold there is a lot of money involved here. Builders did not have much choice and the sluggish home market since the past few years and the downfall in the sales of new houses has somehow brought a welcome change in the rates of property.
With market data pointing towards much lesser percentage of first home buyers and genuine home buyers and a large percentage of people buying for investment it was understood that the home selling market was at a stand still.
There was no hurry from the buyers side as they had time to wait for purchasing property for investment purposes. I still do not understand this move is a genuine one or not. With the reputation of the builders and the home loan lenders from the past it may still be doubtful that all that glitters may not always be gold.
The media may be creating hype and the prices may be slashed just for the front cover. Time and again I have mentioned even if the prices are lowered you must be alert while doing home purchases, be it your first home or purchasing a house for investment purposes. Do go through the other expenditure involved and the administrative costs involved for completing the deal of purchasing a house.Especially while staying in UK being an NRI you need to be regularly updated of the finance sector.
If you are purchasing a home through an agent then their costs also add up to your purchasing amount. When having a talk with the builder and finalizing the details regarding home purchase do go thorough the transfer fees, taxes and the other costs involved even the minute details like the maintenance of the past months if the society has been established and the electricity bills for the past months which very often goes unnoticed till you shift into your new home and get your first bill.Not only in India but also in the UK the rates have gone up immensely. Those extra charges do pile up in dollars and may be an unexpected financial crunch towards you.
Since most of the houses have been left unsold for years and the society may already been established you as new buyer need to understand your rights and commitments as a new buyer of the flat in an established society. With finalising your area square feet for maintenance and the past dues to the society all these must be clarified with the builder before finalizing your home purchase. NRIs staying in UK have to face the same situations with backlog bills remaining you will be in for a surprise, hence better to go through a reputed broker in UK, though there charges will add up to the amount.
As the prices have fallen you get the upper hand at bargaining and do bring down the home rate to maximum lowest as there will be other costs involved which will again sum up to a substantial amount.
With the internet ruling every field more so regarding finance, the home loan sector is fast racing towards making quick loan applications and quick loan approvals. No longer do you need to find out information from different people and do rounds of various sites for purchasing a new home. You can browse the internet and get instantly a list of new constructions, new homes available and resale homes as well as loan lending housing financial agencies who are more than willing to send their representative at your place for more information regarding their home loans. All this has been possible due to the internet and online websites of the housing finance companies.
How reliable are these online websites and is this information authentic? especially with quick insurance policies online are these genuine. Well most of the time yes, only when the companies involved are a reputed ones. Since insurance for home is mandatory with every home purchase and approval of a home loan every borrower of home loan has to purchase a insurance policy.
While selecting any insurance company do go through the company profile and their financial activities. The financial reports of the companies will give you a better picture of the company’s financial position and their market rating and performance. This is very important to see that the lending company is not going in loss otherwise there may come a time when there is take over by another finance company and the borrower may have to adapt to changed rules and policies regarding their existing loan and insurance covers.
While browsing the internet select a reputed company for purchasing an insurance policy and you can also ask and discuss these matters with your colleagues and relatives who already have an existing home loan going on or have repaid a loan from that company. There is some risk involved with total online dealings but if there is transparency in the financial dealings than this is the most convenient form for any borrower. Online insurance agents also guide you with the policy details and the premiums that need to be paid either one time or in instalments at regular intervals.
While making any financial dealings online do take care about disclosing your credit card details and other financial details. Though there is some risk involved online insurance agents do help to save lot of your time and energy.