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12 July 2016

Home Loans Reviews The Power of Internet Read the Reviews carefully about Home Loans

Home Loans Reviews , Read the Reviews carefully about Home Loans as some Google searching will give you a lot of information regarding the financial standing of each bank , institution and loan lending companies.
No it is not enough that you sweet talk with the bank manager and all is done, all matters regarding your home loans approval, documents , all sorted out, you feel comfortable with him and trust him, .but alas in a few months this manager will have shifted jobs and you have a new one!
The basic fact about becoming a home loan borrower is that you have a relationship with the financial loan lending institution or the Bank. Do keep this in mind, it is not the individual person or the human resources manager.
Home loan reviews can be read and searched for thoroughly before you commit to any company or bank for you home loan.
Home Loan-Simplified Facts
What to look out for in Home Loan reviews-
1) Stability and history of the loan lending institution.
2) The experiences of people who are borrowers since past few years.
3) Do people recommend the bank and their procedures or are they bickering.
4) Are the bank authorities prompt to answer queries and revert back on problems faced by borrowers.
5) What experiences do people share in case of delayed payments and skipped EMIs, that is the recovery procedures of the bank.
6) what experiences do people share in case of prepayments or shifting/transfer of their home loans to another institution.
7) Finally do understand , the web is a vast world of information and different types of temperamental people. As also some comments may be manipulated, shelling a few amounts of money can get you a thousand likes or a few thousand negative comments!
 Be open minded, not all may be true, so do visit the Bank and meet the office staff, follow your gut and then make the decision!
All the Best from Rizwana!
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Other Hidden Costs before Taking a Home Loan


Other Hidden costs in home loan you are not prepared for! Getting a home loan may seem the easiest as there are many institutions and private brokers lending money as loans for purchase of flats and also the procedure has been made quite easy. How can we come up with the figure of loan amount to be applied for. Will it be the total value of the flat or will we get the flat ownership by paying loan amount are few simple questions that we are unaware of. Usually we feel that we can apply for a loan and purchase a new flat, but this is not so.
Banks and financial institutions only give a certain percentage of the loan amount and not the total amount. Usually they may give maybe 70 to 80 percent sometimes even 90 percent considering your past financial record. The amount to be prepared for, prior to the application of loan, is termed as down payment which the purchaser has to pay before applying for a home loan. Deciding on the amount to be taken as loan is an important decision as the borrower will have to pay installments along with interest for certain period of years. Usually loan may be taken for twenty years or less so the individual must be prepared for having financial stability during later period of years. Always there is risk of losing job or death of a family member unexpectedly and the loan may have to be cancelled and property auctioned. But still it is worth taking the risk as no progress will be done without taking certain amount of risk.
Then also in case of self professionals, business people and private establishment owners  there is another uphill task to prove their financial stability as the source of income may not be fixed.
It is advisable to pay larger amount as down payment and reduce the amount for loan as the interest charged by the financial institutions is more and the same property can be got at lesser price
 ‘Other hidden costs’ are a term we all are familiar with. Many a times we go to purchase some good and we are made to pay ‘taxes extra’ an amount more than the printed price. Usually there is a small asterix below any advertisement which we do not pay much attention but during purchase it increases the price. The same matter happens with home loans. We see heavy discounts and low interest rates but we do not consider the hidden costs that we end up paying during taking a loan for purchasing a home. A home loan may be in simple terms amount borrowed by the borrower from the lender for a certain period of time with a certain amount of interest charged with the amount to be paid. As an individual comes up with the decision of taking a home loan one is usually not aware of other processing charges and this may lead to quite some amount if not prepared for. Also certain financial institutions may make the borrower open account in their bank with depositing a certain amount minimum or also the borrower may have to oblige by taking their shares which can be a pinch as the individual may not be prepared for this money.
It is always advisable to get thorough knowledge from different financial institutions and private brokers for their special requirements other than the interest rates before taking the step of applying for a home loan. 
1) Processing charge: This amount is taken by the bank for the application and other processing charges. It may vary for every institution but usually may be 0.5% till 1% of the loan amount.
2) Administrative fees: The different paper work and documents required as well as the stationary is added as a fee.
3) Legal charges: Some banks may also charge for legal verifications and visits from the verification teams. This may vary from different individual banks or private brokers.
4) Prepayment penalties: Today due to competition most institutions have waivered the penalty charges for prepayment and closure of the home loans prior to the fixed tenure for repayment. In case the borrower or individual that has taken the loan is willing to pay the amount prior to the set dates the bank loses on the amount earned as interest so they apply penalty charges for closure of the loan. Still the borrower is at benefit as this penalty fee is much lesser than the interest rate charged by the financial institution. This can be clarified beforehand.
5) Delayed payment charges: Sometimes under unexpected circumstances the borrower may not be able to pay the monthly instalment. Here for the next month amount as delayed payment is also charged with the amount. The percentage may vary for different lenders. As also some banks allow prior emails or request and respect this decision of delayed payments, or club EMIs together, depends upon individuals circumstances and the bank authorities.
6) Cheque bounce charges: Penalty charges are levied in case of bouncing of cheque by the borrower. Definately this is a rule breaker and the bank may charge penalty for this. It is always better to deposit the amount beforehand in the bank where the EMIs are deducted to avoid this.
Keeping in mind these important financial points helps the borrower to be prepared with this extra amount before applying for a home loan. Some private brokers may also charge transfer charges of flat to the borrower or purchaser of the flat.
Home Loans-Simplified Facts

19 April 2016

Branch Shifting Closure of Home Loan Offering Bank Branch and The Thumb Rule for Home Loans

When you go for house hunting you are confident that your income being 35 thousand Indian Rupees will definitely go on increasing and as you move up the ladder you will be able to pay larger EMI(Equated Monthly Installments). So you happily go in for a larger house as compared to other options and lenders are happy to provide you loan, they earn from high interest.
The journey of repaying the home loan begins with smaller EMIs and proceeds with increasing in amount. Many people opt for flexible rate of interest in the repayment schedule as they are confident about their increase in salary over the years. But it is better to take a informed decision than be sorry later. Reaping EMIs is a stressful task since this goes on for 10 to 20 years. Hence an intelligent borrower would research the market, search for rates of interest and go in for the best deal, the one which helps to save precious interest over the years.
Intelligent Borrower
Many lenders will allow you to take a home loan on 40% of your income. This income is not the total income on your salary slip. Deductions will have to be made regarding cuts on income tax, insurance and other investments. Here we consider the net income, that is disposable income , which you have in hand. It would be better to be on the safe side and take a loan approximately about 25 to 30% maximum of your income. However much you adjust the expenses this figure will allow you to make the repayment process of home loans passable and stress free.
I am not saying that you underestimate but dreaming in a practical manner will be better. Our early generations did dream big and hence now the property they have purchased has grown by many times. Keep it in a manageable amount and do accommodate for rises in income and position over the years. But take your own decision regarding the loan available, more so if you have a very good rise in salary you can invest the money in other profitable investments or adjust you EMI by changing your repayment schedule later on to accommodate a higher EMI.


After all the applications and approval of your home loan you are happily paying your EMIs every month. The home loan amount being very large along with the rate of interest the borrower has to maintain relationship with the lending bank for many years. There are bound to be unexpected problems coming up within the long repayment tenure of 15 to 20 years.
One of the problems coming up from the side of the lending institution is that the bank may shift their branch to some other place. It can also happen that the bank may close down. What can the borrower do in these circumstances?

The borrowers have to therefore keep regular contact and communication with the lending institution. The most important point here is that any borrower has to get an understanding and working of the bank before committing regarding the home loan and signing on the dotted line. Peruse the documents very carefully and understand all aspects and clauses mentioned in the home loan document. In case there are any queries or doubts then you can clarify them with the financial counselors.
This will help you to get a clear picture about the amount you have to pay and the facilities you get regarding and default or unexpected problems. Here the borrower can also discuss all other matters which may or may not be mentioned in the document. These include sudden problems with the financial status of the bank, like bankruptcy, losses, inflation;  shifting of branches of the bank and how to follow up on future payments; loan recovery procedures adopted by the bank in case of your delay in payments; in case of take over by other bank due to failure of your bank too keep up financially; any other problems due to unexpected natural calamities or hazards.
Though many housing banks and loan lending institutions that have clause for these factors, usually they are written in technical terms which is not easily understood by the borrower. Hence you must clarify all these doubts before getting your home loan approved. In times of uncertainty it pays to talk and enquire more and keep your options open.
All the Best from Rizwana!

Why to take a Joint Home Loan? How to Get Your Joint Home Loan Approved

Joint home loans, are a great way to take the big leap of owning a home. Decision of purchasing a flat on ownership is a dream for every individual. With so many good housing finance companies available the borrowers can select the best option and who can accommodate their financial customized needs and offer a personalized loan.
Joint home loans are those loans where two or more members jointly apply for the home loan and submit their documents together. The lending companies will go thorough their financial standing and asset and offer a home loan on the total amount of collective funds available for repayment of the home loan. But most of the times many lenders shy away from approving joint home loans due to the high risk involved with joint finances.
Home Loan-Simplified Facts

For better chances of loan approval  even if you are a co-applicant for a home loan try to go along with your spouse or if you have  sibling willing to enter this arrangement then make it clear before and also try to take a smaller loan, that which you may be able to bear single handed also. Minimize the risk of default and make arrangements for repayment schedule.
Home Loans - Simplified Facts
Also going in for a joint home loan remember that during the home loan repayment period you may not be allowed to go in for a second loan for whatever other needs if you both do not have the incoming amount. If you are committed in a home loan jointly then you may not be eligible for another loan for say, a car loan or a renovation loan. So remember this.
Both joint applicants will get tax benefits so use this to your advantage as savings. The best combination for getting your joint home loan approved would be with your spouse. Since this is family the lenders are accommodating with this combination and usually many men go in for a loan if they have regular finance available for repayment every month. So if you have the money set aside or additional regular income every month then you can go in for joint home loan and the lenders will also approve it provided all your documents are in place.

                                             Home Loans-Simplified Facts


All the Best from Rizwana!
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29 March 2016

What is Right of Rescission in Home Loans Meaning

Right of Rescission
What is a Rescission period. the three day right of rescission period, a part of Truth of Lending Act, was passed to protect consumers from fraud lenders and financial sales agents. Gives the borrower the right to cancel their home equity loan within 3 days of closing without penalty. Considering the interest of the borrower to protect the family home at risk by using it to avail a loan.
the 3 day period allows you to cancel your home equity loan within 3 business days. Excluding Sundays  and Holidays.
You as a borrower   for this to be eligible must sign all disclosures ,, that is close your loan. Receive copies of all disclosures and receive the right of rescission note.
The right of rescission does not apply to all mortgage loans.
Does not apply to a Home equity line of credit and Refinancing of existing mortgage and home improvement loan.
Home Loans-Simplified Facts
Hope this helps!

All the Best from Rizwana!
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08 January 2016

Your Home Loan Lending Website Just disappeared! Some Really important Precautions While Applying for Home Loans Online

A Very Happy Prosperous New Year and Hope All Dreams of Owning a Home get fulfilled in this beautiful year of the Fire Monkey!
Online home loans are an easy way to check out on financial companies and housing development projects right from the comforts of your home or office. While it has become so easy and buyers and home loan appliers have so many options the downside is we get confused with too many options. And then there are frauds also.
There is a large amount of advertising in housing and home loan sector going on and it is possible people get tempted to choose the easy way, some new financial company offering home loans at very low interest rate, some private banker approving loans without any documents, and then some people just ready to give large amounts of money as loan within three days!  , all looks so simple. Then of course the sob story  of a widow who got home loan from a private banker without showing any repayment proofs!and who knows how she is going to repay the amount!
The question is how do these new financial institutions or bankers handle paper work, what documents are signed, and if not signed are you/ your property ( as asset for a new home loan)  in safe hands, what happens in case you are unable to pay an EMI on time? you don't know all these as there are no rules made.
It is always better to choose a reputed bank and established home loan lender as they have ready formats and rules. Or at least check their past history and how long they have been in business.
Home loans online - they are never actually completely online and the Lenders representatives either come to your place for checking or you have to visit the banker with proofs and documents.
For the pre information and finding out how much loan you can avail there are ready EMI calculators on every financial  websites and this helps a lot in saving your time.
In case you see a website offering complete financial home loans online in very less time  do check out the background and reputation of the company.
                                                  
Also take precautions and be careful of divulging any personal details of your bank accounts and investment passwords. Or Giving the original documents of your property , or signing any deeds of letter of authority which is really not required.


Do check the past history and how long has the website been in working as there are many fraud financial websites running and doing roaring business, and they collect the deposits in name of many reasons, opening an new bank account, as shares of the bank, as new investment schemes which will allow you to avail a higher home loan,  from home loan borrowers and one fine day close off!
In this world of web be very careful with your precious assets and money while applying for a home loan , it is not strange to see a financial website with loads of great comments and testimonials (that may be paid) disappear one fine day!
If it seems too good to be true, it really is not true, remember this!
Home Loans-Simplified Facts
All the Best from Rizwana!


I am not attached with any financial institution and am not responsible for any financial links posted as comments or financial loan lending advertisements here. Take care and surf information before committing!

02 January 2016

What is OC? and Why Rates Differ Drastically for Houses in Same Areas Some Facts

Happy New Year! May Your Dreams of Owning a Home Investing in homes and Buying New Homes take a Quantum Leap! All the Best!
What is OC?
While the future of housing construction companies is bright , people are opting for more and more larger homes, spaces with gardens, themed structures, latest amenities from wireless security systems to a modern contemporary design, we see the trend is also more towards living closer to nature.
Booking homes under construction helps to save a lot of money and  you get the home at considerable low rates per square foot. But there is also a lot of risk involved, will the project be completed on time? will the promised amenities be available for the buyers? will the builders follow all rules as quoted in the project?
Recently I have been searching for property and was astonished to see a lot of difference in houses rates. Some in the same areas and made beautifully were very high rates and some were very low. Yes the base rate is standard for a particular area and then each construction company or builder is willing to negotiate to complete the deal.
The most shocking discovery! Many building where people are living and everything is  hunky dory have not got Occupancy Certificate.
An Occupuncy certificate  is a document issued by the local Government Agency as approval that the builder has followed all construction rules and the project has been made as approved in their plan.
While most reputed builders follow norms there are few who may begin with the plan but as the project reaches completion modify the plan and then the project does not get OC.

Simply quoting that if there is a garden space the builder may impulsively add a theatre there or a Playground area is converted to shops for sale. Usually the most seen default in housing projects is for parking spaces which are approved  as stilt parking on ground floor according to plan on paper, where the real project has shops with all activity abuzz!
Then also flats are modified while in constitutions where the plan shows two room kitchen houses the builder modifies it according to demand and either makes them larger or smaller areas. The basic space surrounding each building is also compromised resulting in buildings made very close to each other not following the safely norms.
The legality of such spaces does come up and even though you will get a really good  bargain for such houses and flats it will always be a question as these houses do not get legally approved.And this again comes up with every bill and every document, the illegal status, and also while reselling the flat,, as the new buyer may want to see all the approved documents and status cleared before buying a flat from you.
Do check the documents before committing your precious money into under construction housing projects, or buying resale flats, one of the best ways is to take a home loan where the lender banks representatives do all the hard work for you and find out the details of the housing projects, and only then approve your home loan! Check the original papers of the flat or property and see the floor plan, there is mention of the area, and every detail, all will be clear!
Home Loans-Simplified Facts
All the Best from Rizwana!
I am not attached with any financial institution and am not responsible for any financial links posted as comments or financial loan lending advertisements here. Take care and surf information before committing!