Loans And Houses

By Jake Smith

Everyone is working hard enough and wishes to have a house of his own. There are few people who can really afford to buy their own homes. The number of people who buy house by taking loans from banks and financial institutions are increasing daily as the banks are lending loans at much cheaper rates than ever before. There are several financial institutions or banks which offer loans to people who are in search of house. The rate of interest charged by various banks are different and one may choose the bank or financial institution which is charging lesser rate of interest. One should do proper inquiry and research for this. Certain terms and conditions are laid down by these banks and financial institutions which are to be fulfilled before a person is assigned the loan. Submitting the pertinent documents is one of the terms of banks and should be fulfilled in order to get the loan. The main ground for asking these documents is to validate the identity of the person who wants the housing loan.

Different tenures are available for the borrower to opt like three years, five years, ten years or even fifteen years. These tenures vary in different banks and institutions. The person seeking loan may choose any tenure which depends on the repaying capacity of that particular person.

Depending on the tenure, Equated Monthly Installments i.e. EMI are calculated and the person is informed about it. EMI and number of years are related to each other and as number of years increase, EMI decrease and visa versa. Banks are much concerned with EMI and their main goal is to get back the entire loan amount and that too along with interest.

It is very necessary to first calculate the price of the property which one wants to buy. Next important thing is to check that the property which one is willing to buy does not have any other legal obligations which are to be satisfied. Best thing is to get a No objection Certificate which explains that the particular property does not have any other liabilities to be paid. One is asked to submit relevant documents as required by the bank or financial institution along with application form before granting of housing loan. Residential address proof and Income proof are among the relevant documents asked by the bank officials. Banks also confirm the organization or the company where the person asking for loan is employed. These banks also confirm the residential address of the person.

After all the conditions and requirements of bank are fulfilled bank issues a sanction letter which has all the details in it. These loan details include the actual loan amount, the rate of interest charged, tenure of the loan as well as the mode of repaying the loan amount. It is also the condition of the bank and financial institution to mortgage the original documents related to the property that is being purchased. The reason bank or financial institutions keep these documents are just for the security purpose. These documents stay in safe custody of the bank till the entire loan amount is completely repaid. These documents are also sent for scrutiny in the regular audit of the banks. After visiting the property and ensuring everything the loan is finally disbursed.

Those dreaming to have self owned house, for them loan is just like a blessing. These housing loans ensure one in fulfilling one's dream of self owned house. Dreams are converted into reality by housing loans. - 23196

About the Author:

To read more about loans, debt and bankruptcy options, check out Bankruptcy Options USA. Also, get more information on bankruptcy at Bankruptcy Options USA review now!