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13 December 2011

Facts for Today’s Home Buyers NRIs in UK Home prices have been slashed Read the facts

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.
A positive trend is just beginning a new dawn with lower rates , and we do hope every home buyer and home loan applicant gets to fulfil his dream of owning a home in this coming new year of 2012.
All the Best from Rizwana!
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Online Insurance Agencies and Services- How reliable are these?

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.

28 November 2011

Why Borrower Home Loans India Needs Legal Advice

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

Why I am not Getting the Right Information about Home Loans?

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.

Facts and Case Histories on Home Loans from Search Engines

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.

Search Engines and Home Loans

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.

Tips for Effectively Using Search Engines for Home Loans

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.

The Right Way to Search Online for 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.

Search Effectively and Correctly on Internet for Home Loans

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.

How to Search Internet For Home Loans

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.

Important Tip for the Intelligent Home Loan Borrowers

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 and the Borrower

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

Why is my Lender Asking So Many Questions for Verification of Home Loan

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.

Ranking Home Loans

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.

31 October 2011

Tips for Joint Home Loan for Couple Love Marriage Outside Religion

Getting married outside your caste and religion, love marriage, as love does not have eyes, in such cases people often have both caste religion rituals for marriage. The trend of love marriages have been the way today and with most couple working many prefer to go in for a registered court marriage. 
This is one of the simplest form and also with minimum expenses and with the registration the newly married couple can go ahead and use the savings for future expenses. When you are married according to your religious rituals then your marriage is registered in the catalogue of your head priest  whichever religion you may follow.
With marriage come dream of owning a new home and every couple wishes to shift into their new home as soon as they get married. 
What procedures can the newly wedded couple adopt for quick approval of their home loan?
As their marriage is registered they need not worry about marriage proof and they have this important document with them. Whenever they need a loan they can show their salary proof and avail a loan. For applying for a home loan it is advisable to go in for a joint home loan. here the chances of approval are increased and also your total salary amount will be increased collecting both your salaries. For any lender your repayment capacity is important and you get the advantage of increased total salary when you apply for a joint home loan.

Joint Home Loan After Marriage -Image by Rizwana Mundewadi

The trend of love marriages have been the way today and with most couple working many prefer to go in for a registered court marriage. This is one of the simplest form and also with minimum expenses and with the registration the newly married couple can go ahead and use the savings for future expenses. When you are married according to your religious rituals then your marriage is registered in the catalogue of your head priest.
With marriage come dream of owning a new home and every couple wishes to shift into their new home as soon as they get married. What procedures can they adopt for quick approval of their home loan?
As their marriage is registered they need not worry about marriage proof and they have this important document with them. Whenever they need a loan they can show their salary proof and avail a loan. For applying for a home loan it is advisable to go in for a joint home loan. Here the chances of approval are increased and also your total salary amount will be increased collecting both your salaries. For any lender your repayment capacity is important and you get the advantage of increased total salary when you apply for a joint home loan.
The registration certificate is enough proof for the lender to offer you joint home loan. You can cut down on extra expenses by delaying the honey moon and collect the total amount for down payment of your flat. Try to also accumulate all gifts in terms of cash payments as this will further add up to the amount you need for the down payment of your new flat. Commitment from both sides will help you in better achieving your goal of owning a new home faster.
When your marriage is as per terms of your religion you will need to register this in the court. This may take some time and how can you proceed with your loan application meanwhile? Many builders and lenders will be willing to go through your financial portfolio to understand your repayment capacity. Your marriage certificate from your local religious head will also be as proof of your marriage and this copy can also act as document proof of your marriage for application of joint home loan. Remember to select a house that you can afford and will be able to repay within the loan repayment tenure.
Applying for a very large loan which is questionable will delay your joint home loan approval and there are also chances of your application getting rejected. Be realistic and choose a home you can afford, that does not mean you under achieve, do dream big and all the best for your first home loan..

21 October 2011

Very Important Tips for Home Sellers - A Better Way to Sell Homes

A better way to sell homes. With lenders some tips to improve their lending customer base I have come up with a few practical suggestions. Looking at advertisements and offers during festival seasons everyone feels that this is the right time for purchasing a flat and along with the flat come home loans as we all know a small flat costs for nothing less than 20 to 25 lakhs and a bigger one would cross the limits of a crore. With Lodha builders advertising a 6 crore flat with latest amenities it is understood that people have the purchasing power and can get a home if they really want to.
People are hesitating to buy new homes and with few exceptions where money does not matter anyway they purchase for investment purposes, and need to divert their finance and what better way than in housing sector as this field has assured and guaranteed returns.
Majority of people applying for home loans are from the private sector and they may not have all the documents in place which leads them to search for those lenders who can offer them loans. It would be better if the lenders would simplify their loan procedures and also ease out the formalities to minimum. As it is every one understands the fact that you will get a loan only when you are eligible for that, which means you have the repayment capacity. Still when you discuss of home loans this topic is not universally acceptable and many people, have the picture of so much high interest and formalities and time taken for approval. Quick easy approval.
 Reduce Down Payment since this is the major hurdle for any home buyer. It is a common fact that homes are costlier and out of reach for many working people but the fact remains that people have the repayment capacity, they just can’t collect a large amount at a time. EMIs are fine but the first payment being large amounting to 20% of the total home coat is difficult for many and if these people find a way here suddenly there will be a major growth spurt in the housing finance sector.
Advertise for targeted audience only for some time and see the difference. Would it not be nice to see the Tata and many more in housing industry coming up with affordable housing. If you target the majority public you will get more coverage and definitely more borrowers who approach you.
Reduce interest rate. It may be difficult with the prime lending rate increased but still it can be managed. A home taken on loan will suddenly increase in the total amount so much that if at a glance you see the amount people repel from the thought of repayment of home loans and that too for such long tenures. This puts undue stress for many and also the fluctuating rates which again are like a borrower always sitting on a bomb, you never know when early morning  paper news on home loans will give you a shock and a jerk to your finances!

No misleading advertisements and no false promises just affordable housing. Sometimes I feel how much this world of advertising has grown, does it really matter to make misleading ads and give part information, can’t we put forward the truth, I am sure you may not get immediate roaring business but the truth will always prevail. You will get many customers quickly and of course happy customers. A better way to sell homes. Trust from the customers goes a long way!

Buy a Home like Ambanis!

Well not like but almost. The trend today is for purchasing a bigger home, and with that,  have increased your home loans along with your EMIs. With housing industry offering fully furnished flats also with latest amenities the buyers are spoilt for choice. There are homes that are fully furnished with modular kitchens along with security services 24 hours along with swimming pools, recreations parks, malls and theatres along with themed gardens. In fact there are special societies created for high class living where even the reception area looks like a reception area of a five star hotel, air conditioned and having attractive seating arrangement.
It is very affordable for today’s borrowers to buy a home with all amenities as developers are building such societies that have all facilities and amenities. With malls, schools and hospitals also in the society they are mini societies in development who do not require the outside world! Every one dreams of buying a flat in such an area and advertising and new constructions have created a demand for bigger homes.
Like some years back having a two bedroom hall kitchen flat was the biggest flat one would purchase, but today we have the separate children’s bedroom, play area for children, parent’s room, puja room, guest room, entertainment room and also the servant’s room. Bigger flats also have open terraces and kitchen garden facilities in the backyard. With both spouses working today there is a sudden increase in finances with the family and what was unaffordable few years back has now become the in thing and when people think of buying a first home it is understood that they will go in for  a bigger house and extend their limits further.
Here I am talking about life style which these developers are offering if you have the finances. You can get beautiful homes with so many amenities that you change your life style over night by staying in these societies. Do remember that only buying a house is not done and you have to keep paying the higher maintenance and also for ever increasing costs of the same. Everything comes with a price tag and nothing is free. The decision to buy a bigger home is good as property rates are increasing fast and you make even within a few years. We have seen properties purchased just few years back nearly double in five years time.
For a bigger flat you will need to go in for a larger home loan, which may not be a problem if both are working and you have your finances and investments in place. The only thing to remember is that you have to pay increased EMIs every month so calculate your finances with critical point of view. Be practical regarding your financial decisions as there is always an unknown factor and you have to keep aside some money for the unexpected. You can risk and also increase some amount of home loan keeping in mind your income growth over the years. Also keep a grace amount for market fluctuations in finance sectors like recently the Reserve Bank increased their prime lending rate and immediately the blow on home loan borrowers was felt by every one in terms of increased EMI amounts and increased loan repayment tenures.
People are opting for bigger homes as life style today is changing and what was luxury some years back is now a necessity. And of course you get a healthy and better living environment with some housing developers also promoting eco friendly homes. On the whole the concept of buying bigger homes is roaring and definately here to stay!

You Need Crores For Buying a House

Yes it is true and also not in very posh and upper end locality. Even the suburbs and out skirts there are properties and homes coming up with the budget range of a crore or more.
Just some years back we remember that houses cost in lakhs of rupees and people would get a very good house in about say 20 to 25 lakhs. But at present this budget is the beginning and starting level of housing development projects. From 15 to 20 lakh rupees for a house on the outskirts of the city or far away places with no roper infra structure the buyer sure needs to either increase their income or go rob a bank! Not literally.
Selection property within budget range has become an important task for new buyers. Especially the working category of class three employees like peons and ayahs and maushis, are all those people we need regularly and their services are irreplaceable. The Tata housing projects or the nano projects are the need of the hour. We really need many houses in this category of we want our dream of giving every citizen a roof over their head.  
Property redevelopment is another very important and promising option to increase the supply of houses. The owners of the buildings can go through legal procedures with proper guidance from lawyers and  enter contracts for redevelopment. Many people also get redevelopment housing loans approved for their society and with these they can build good homes out of their old dilapidated buildings.
Many places have rates that are a minimum of 4,000 to 5,000 per square foot which go on till 15,000 or more rate per square foot on the outskirts and suburbs of the city. With a two bedroom hall kitchen or larger house it is well understood how the rates of houses have increased. You either need a larger budget or you will have to compromise with the location of your house to be purchased. In the city homes are much much dearer costing more than a crore, even our favourite developers are helpless as the supply for houses is lower and the demand for purchase is higher. With so many projects developing and under construction it is important to see which projects have got government approval and clearance title documents.  
With one end buying home for investment,  what about the lower end of people. How do they purchase a house within their budget, will they get a housing loan, will they get a home loan on lower down payment, will they be able to dream of owning a home? Chawls and small budget homes are still dearer and with all the documents required is it really possible for every citizen to own a home , an important though to leave you with!

20 October 2011

Here is a Mantra that Helped Vijay Fulfil his Dream of Owning a home

Vijay a peon working since past 10 years and had saved some money and also has some investments. Though small amount this all did matter when he decided to get married. The decision to get married to a school lady helper was the right one, as he had already decided to get married to a working lady. Having a simple marriage and clubbing all gifts as cash he conquered the first fear every home loan borrow has, that is to collect the amount for down payment. With marriage began the  thought of owning a home as they lived in a joint family with his brothers and their family.
Living in a single room and kitchen was more of an adjustment but both were happy and positive with the arrangement. They all knew the limitations but this did not stop them from dreaming to one day buy their own home. People would comment on their family staying in such a small place and sometimes challenge them that a peon cannot afford a home in today’s times. Vijay and his wife were the silent type who would not react to such comments but inside deep within grew a dream and to accept this as a challenge and Vijay did dream of giving his children a new home of own.
Vijay being an intelligent and understanding person did take advice of his colleagues and employers regarding homes, rates and also home loans. His experience and reputation over the years had his employers in his favour and they also knew about his investments and financial position. Here he won the first step by collecting money for down payment. Since the employers knew him he was offered some amount without any interest as a personal loan. With this assurance began his journey of searching for a small home. He did his home work well. Malti on the other hand also discussed with her employers the same and got tips regarding homes, home purchase and home loans. This step was very necessary and their confiding with their employers did get them the support morally as well as financially from their respective employers.
He began enquiring about small area houses and availability of such homes, Rates of area per square foot and also total cost of home was in his agenda. His eligibility criteria had some plus points, permanent job, past record and his bank account. His total income and his wife’s income did make a good amount for taking a loan and with proper planning they felt that the dream of owning a home could be managed. With the advice of their company finance adviser they got hold of correct knowledge and documents required for applying for a home loan. A year went with all planning and enquiring and collecting information. His home loan was approved with the guarantee of his employers.
The most important and major decision was to choose from properties that were far away and finally they did select a property on outskirts of  city as the rates here were affordable. With 8 Lakh rupees gone in the flat they did not have any functions or celebrations for house warming except for the rituals of puja for their new home. Though his wife Malti was reluctant to take a home here but Vijay being practical understood that they can travel for few years in the beginning and since they have not though of going the family way soon they have also started saving more for the EMIs that  begin with  home loan. The house is one room and kitchen flat and though small you could see their eyes sparkle with the possession of their new home.
Dasheera was a lucky festival as they shifted to their new home and we pray and wish them good luck, may their new home give them loads of happiness and they repay their home loan sooner than expected!
Simplify paper work, twist and turn some eligibility criteria for offering home loans, and finally please reduce the down payment, lenders! help people achieve their dreams!

Special Targeted Home Loans

With rates of property going in crores one has no choice but to go in for a loan to purchase your first home. It is better when both the spouses are working as this gives additional income to the household and one income can be totally kept aside for repayment of the home loan. There is a vast range of difference between rates for area per square foot and also rates in every locality, which gives us a wide choice of houses according to our budget. It would be so nice to have home loans also in such a manner. Wouldn’t it save precious time and money going about searching for the right lender and then realizing that you do not fit their eligibility criteria?
The need of the hour is to have special targeted home loans. This would save so many hassles both for the lenders as well as the borrowers. You need not feel embarrassed when you enquire about a loan amount to an individual. I have seen people from the middle class segment still hesitate to enquire about home loans for a one bedroom hall kitchen flat! Many times online home loan calculators help to give you a first hand information regarding your eligibility criteria and also on filling some details you may get the total amount offered as home loan. Many housing finance institutions have separate sections for handling loans of different types. Each locality has moulded their rules according to public in that particular area and if they need the borrowers they do have to flaunt some rules and twist and turn them to make the customer fit into their eligibility criteria.
Each borrower is special and even if they are applying for a small amount of loan they are the people who add finance to the housing company in terms of interest. It would be good to have special targeted home loans that will advertise only the targeted segment of people. Now recently with the festival offers coming up the developers and housing finance companies are offering big bonuses on loans. They must advertise within a budget or a sector of public like loans for budget range of 25 lakhs or even less and they are sure to get a handful more of borrowers who are still hesitating to make the first move. I have seen many people still having that lost look when we discuss loans and finance with them but they do have the dream of owning a house.
With special targeted home loans people will be more receptive to the concept on loans and also since they will get to own a house of own they are sure to make quick decisions regarding purchasing a home within their budget and repayment capacity. Homes for middle class and home loans for middle class! Here is also a chunk of our society that still needs loans and of course they are the majority people who work hard and make both ends meet and they do have the repayment capacity but hesitate to make the decision. Challenging some one to buy a tyre and they get a caaaaar,  same with homes! if anyone question them if they can afford a room and they will buy a flat. Which leads me to my next post.

16 October 2011

Developers Offering Goodies for Selling Homes? The Hanging Booty in Home Loans?

Home loan rates today have gone up within few months from 8% to 12% and this is having a detrimental effect on all loan borrowers. People are beginning to think is there a way out? Many existing home loan borrowers are burdened with extra amounts added to their EMIs and also the loan tenure being extended till their retirement age.
Negotiate Save Money
Meanwhile the builders and developers are always on to something new. Right from fully furnished flats to free cars and even gold ornaments!  This time the trend beginning to tap the potential of our weakest point, benefits of children. The media creating hype about offerings of swimming pools, club houses and gymnasiums along with schools and hospitals and recreation centers, just for your children! All these amenities have been offered and going on for long and longer but the new way of presentation will work on the emotional aspect. Yes the developers now seem to tap the target group of working couples where there are nuclear families and the parents cannot spend enough time with their children. This they will cover up their emotional guilt by spending more money and buying a house with latest amenities so that their children are cared for and busy when the parents are away.
Now the majority home buyers are new couples or the families who are middle aged and looking for second homes as investments. It is a fact that many people can only buy a home by taking a home loan as the amount of each home is very high and loans for many also help in tax savings. Home loan lending agencies also offer goodies and some facilities for both fixed rate of interest or fluctuating rate of interest when lending money. Every financial housing institution has different concessions and benefits for home loan borrowers.

 The important tips for any borrower to look out for when choosing the best home loan is not what is mentioned everywhere in the media and advertising. Think money! Only only think of saving money! All the rest of the facilities and perks are always calculated by the home loan lenders according to their benefits. The home loan borrowers will present their loan lending plan in such a way that you will feel you are getting big bonuses, but the fact remains that the winner in the end is the lender as they get large profits in terms of high interest earned by lending.
So when you sit for negations and finalizing your home loan be prepared. You have to borrow a certain amount for which you have to pay interest. Find out the lowest interest rate offered by any housing finance company. Of course consider which loan lending company is willing to offer you loan first with your age and qualification and work history. Save money here.
Next when selecting fluctuating rate of interest on your home loan and getting lowest rate look at the home loan tenure as you may end up paying more in the long run. Get your loan on the lowest rate any way!
Reduce your down payment from 20% of the total amount of house. This would be a boon for any borrowers and in fact there will be a sudden spurt of increase in loan borrowers when the lenders reduce the down payment. Any housing finance company can go through the borrower’s financial position, age, qualifications, assets, credit card statements, past repayment history and loan repayment capacity along with working family members and they can offer loans even on a lower down payment. Try to negotiate here for reducing this amount in the beginning.
Try to extend your loan tenure to the maximum. You will buy time and later when you are in the position you can repay your loan earlier. This will save you precious money as interest that you would have to pay when you select a low repayment tenure plan which has high interest rate.
If your home loan lending institution is offering any perks and festival offers consider them in a critical manner. As most of the times it is just a media presentation and advertisement to divert your attention form the important facts. So do not select a home loan lender just for the offers go through the other aspects as well. But consider these perks as you have to borrow a loan any way!
Be an educated home loan borrower. Since a home loan is a major decision and involves lots of money and also for a very long time spend this much time for enquiring, weighing pros and cons and also information for the best home loan lending agencies. Find out where you can reduce money, Administrative costs also add up to a substantial amount and very often a home loan borrower does not consider this expense. Home loan closure is another aspect and find out the fees for loan pre closure and fix it at a small amount or no extra charges, this would be best to avoid any early closure charges. You can promise the bank that you will maintain a minimum term of repayment and later if you can afford will repay the home loan without any extra charges, except for the minimum administrative ones. Avoid the penalty for early closure. When looked at the first glance this amount does look smaller than your home loan but transfer charges, and other administrative costs are also an important part of your loan process and the fact that you can negotiate here also is rarely considered by anyone, negotiate any way!

13 October 2011

This Home Loan Approval is Confusing and Taking Time

For some people these entire bundles or heap of document seems like a maze and is totally confusing to maintain all this. Many housing finance companies and banks request borrowers to make a special file of all these documents to keep record of all the documents and papers required during the process of application and approval of your home loan. Since all this takes time it would be advisable to make a water proof file and keep your entire documents in place.
Select a big file and most times the bank will guide you about the size and quality of file required. It would be better to invest in a good quality file as remember all your important documents will go in here along with the original document of your home ownership after your home loan is approved. It is known that all lending companies would keep the original house document of ownership with them for the loan repayment period as this acts as a security for them for offering you the home loan amount for such a  long period.
One most important point here is to provide only those documents that have been mentioned in the eligibility criteria. What mostly happen that you unknowingly provide all the documents like all you other investments, other property owned and other assets to get you home loan approved quickly. But the opposite happens. When you provide certain documents the verification officer is bound to do more enquiries and you will have to go on submitting other proofs and documents for verifying your submitted documents. They are tied by rules so they have to do a thorough check. In he end you feel the officers are harassing you as this approval of loan is taking more time than the other loan applicants.
You are totally confused and lose hope from the home loan system. Hence it is best to go through the free reputed sites of reputed lenders and housing finance companies and get a true picture of what documents are required from you and use the online home loan calculators, and other calculators to get the loan amount as well as lending institutions for you with your eligibility criteria and then start with the final face to face talk regarding your home loan.

No Salary Slips Can I Apply for a Home Loan?

When we go through the eligibility calculators and home loan applications we find that the most important document required is a salary slips for the past few months. For any lender to approve your home loan they will need that you prove your monthly income and incoming money to assure the lender about your repayment capacity. What if you are self employed or take contracts and do not have salary slips. How will you prove your monthly salary without your salary slips?
There are many lenders who cater to people who are self employed or take private or government contacts and do not have the required documents in place. Here it is a fact that the lenders do understand that you earn a good figure but they are tied by rules and cannot accept your home loan application. You can get your agreement papers about the contract and here your past contract papers and completed assignments can be of help. Even if you are new in a company the bank will require at least income proof of past three months or more. Your bank statements and bank accounts will be considered as proof.
In case you are employed in a small company or private company that gives you income in form of cash then you can request for a letter from your employer regarding the applying for as home loan. Your employer may give you a hand written slip which is not valid for application of home loan. Here consider your bank statements fro the past years and if they show a regular monthly incoming deposit then this can be considered as salary proof. If you have been on job regularly and have a good history of work then also this can be sued for your benefit to get your home loan approved.
Your qualification will also be of importance as the lenders will see how much you will be able to earn monthly and whether you w ill be able repay the EMI amounts. Go in for a realistic home purchase and apply for a realistic amount as loan, and it will get approved. And remember having no salary slips does not in any way hinder your loan application and approval and there are finance companies willing to offer  loans for this category of people at the same low interest rate  as others.

How to Get my Home Loan Approved Without Income Proof

Income proof is one of the most important documents and factors to get your home loan approved. Any lender will ask for this important document to understand your incoming money monthly and also your repayment capacity. What if you cannot prove your monthly income? This usually happens with the self employed or people who may take contracts. For such dealing there is no income proof as all this is done in cash. How can you go about getting a home loan in such conditions?
Your bank accounts will be big help here as your financial deposits assets and saving can be shown to the lenders. Your credit card is another trump card for you in such cases as your credit history and credit card rating is a sure shot to get your home loan approved. If you take contracts and pay your employees in cash then there will also not be any salary slips for this. Remember banks and lenders do not approve of hand written paper salary slips. You need to have a computer generated and signed salary slip. Here your bank accountant can give a letter, who takes care of your financial dealing in your business or any private chartered accountant can help. Any reputed and experienced chartered accountant can sign a verification document and approve of your income and expenditure by providing your income tax statements.
There are many lenders who are willing to offer loans without your income proof provided you can prove ownership of asset in form of property, car, investments like shares, gold, fixed deposits and insurance policies. You can also hire a financial consultant or a total solution finance company services who can help you to assess your financial capacity and position and then come up to a chalked out plan for getting your home loan approved. Remember if you have the dream of owning a home and repayment capacity you will get a home loan. Where there is a will there is a way.

Why my Home Loan Approval is Taking So Much Time?

Internet has made people very impatient and I have seen people are so much used to fast life by the advancement in technology that they do not even have patience for the right time to happen. This is also one of the causes that people are often terming some financial housing institutions as having very tedious procedures of home loan approval. They go in for banks that offer home loans soon and without any documents.
Why Home Loan Approval is Taking Time
It can be well understood that all this procedures and applications and documents is a sure burden in the beginning and is definitely a tedious process to collect all these papers together and then apply for an loan application. Some people are blank faced as they, may excel in their professional fields but are unaware of all these financial matters. It is easy to get confused, tired and also lose hope of applying for a home loan.
Here a way out would be to first use online home loan calculators. Also try and find out which bank or housing company would be able to offer you a home loan. Try to see the eligible for home loan criteria on an online calculator. Find out if you fit and in which financial lending institution would be willing to offer you a loan. Also try to see which documents you are able to provide without much hassles. Enquire from online finance calculator about different banks and private lenders who are there in the market to provide home loans and at what interest rate they are offering loans.
After all this advance preparations finally contact a bank or their representative. Private lenders will get back to you sooner and as earlier thought that they give in loans at a higher interest rate is not so true nowadays. Even private lenders are willing to compromise and negotiate on loans as they wish to get good borrowers who have the repayment capacity.
Even after applying for a loan remember that all these procedures are not quick like you get a small personal loan in 24 hours! Home loan amounts are larger and so it will take some time. months maybe to enquire, apply and get your home loan approved. Be prepared for the time taken for all these procedures from the time you begin the enquiring till the beginning of EMIs which will begin the journey of repayments.
But the satisfaction of having a roof above your head, it’s all worth it!