Things to be Considered before Going for Home Loans in Hyderabad

2008-12-10T03:10:00.000-08:00

With the increasing effect of the financial markets on the home-loans industry, banks offering home loans are now tightening the rules. Banks are now very keen and focusing more on the eligibility criteria, previous tracks records, and the legality and technical verifications of the property (home). Keep in view of the aforementioned facts, a home loan seeker must give a careful and clear look at the property before entering into an agreement to acquire a property and proceeding for a home loan.

With the changing strategies, and new rules and regulation coming into process, it has become very important for a home loan seeker to be fully aware of all the aspects pertaining a property that he intends to buy; failing to do this, he may end up in getting his application rejected.

One of the areas that a home loan seeker must look into is the technical aspects of a house - horizontal and vertical deviations. Banks have now stopped giving funds to houses with such technical deviations.

Banks are now giving considerations for the old properties that had gone for Building regularization.

For e.g.:

Horizontal Deviation:

Sanctioned area in each floor as per plan: 1600 Sft

Constructed area: 2400 Sft

In the above case the property will have a Horizontal deviation of 50% for which bank will not give any loan. The same is also applicable to independent houses with such deviations.

Vertical deviation:

Consider a building with ground and two 2 upper floors; if the sanctioned height for the building as per the plans is only 30 ft, and the constructed (existing height) is 40Ft, then the building is said to have a vertical deviation of about 33.33%. The same is also applicable to independent houses.

In the above case, builder might have constructed an unauthorized cellar or an unauthorized floor i.e Ground or a 3rd floor.

In both the cases mentioned above, banks will certainly reject the loan application as they have the technical deviations.

To get details of the constructed area and the height of a building, one may refer to the plan copy. Using this you can know about the sanctioned area and the exact constructed area. Also you can know about the height of the building - the sanctioned one and the constructed one. This helps you in finding out if any unauthorized cellar or any unauthorized floors above the building which are not mentioned in the plan are constructed.

Right Move for Beneficial Home Loans in Hyderabad

2008-11-21T04:18:00.000-08:00

Gaining good knowledge on the interest rates charged by various banks on home loans is crucial before going for home loans in Hyderabad. As the interest rate is applicable for the entire repayment period, you have to be very careful in this regard. Compare the rates with the other banks and enquire whether the interest rate is calculated on daily basis or monthly basis. Please make a clear study on the following aspects before proceeding for a home loan in Hyderabad.

Know clearly

If the rate of interest in fixed or floating
If it is fixed, is it fixed for the entire period or can it be changed
If the rate of interest is floating type, then at what intervals the ROI will be changed
If the ROI changes, then will the EMI increases or the tenure.

It is very common that the banks usually increase the tenure when there is a change in the ROI, and if the tenure exceeds a period of 300 months then the banks increase the EMI.

The floating rate is completely depends on the market conditions. In case of a fixed home loan, the customer should be aware of the clause that the bank can change the rate if there occurs great changes take in money market conditions.