HOME LOANS - ALL YOU NEED TO KNOW

Tips while buying a home

While buying a flat

With respect to the location

• Check for proper approach roads.
• Ensure secured electricity and water connections.
• Ensure that well laid out drainage, sewerage and garbage disposal arrangements have been made.

With respect to approvals

• Check if your builder/promoter has been granted documented approvals from Municipal Corporation, Area Development Authorities, Electricity Boards, Water Supply & Sewerage Boards, Airport Area Authorities
• Check if the builder/promoter has secured approvals from Pollution Control Boards, Agriculture & Forest Authorities

With respect to the property

• Check for proper Development Agreements and the authority for conveyance of title in favour of builder/promoter.
• Obtain a clear and marketable title of the property.
• Ensure execution of proper sale agreements on your initial payments.
• See the sanctioned plan

With respect to amenities

• Verify the specifications given by the builder regarding including quality of construction and availability of drinking and potable water have been delivered
• Assess the natural lighting, ventilation, water connection & sanitary connection status of your prospective property.

STEPS FOR OBTAINING A LOAN

You have not been late on a mortgage payment in the last two years.
You have not been late on a car payment in the last two years.
You have not been more than 30 days late on a credit card payment more than twice in the last two years.
You have had no collections (other than a small medical collection) or any judgments in the last two years.

Your total mortgage payments per month are equal to 29% or less of your gross monthly income (your pay before taxes are taken out).
Your total payments per month (not including insurance, utilities, food) are equal to or less than 36-40% of your gross monthly income.
You must be able to prove your income. Examples: tax returns, bank statements, pay stubs.
In order to count your full income, you must have been employed in the same line for work for the last two years

You have been in the same line of work and/or job for 2 or more years.
You have lived in the same house or apartment for more than 2 years.

DOCUMENTATION REQUIRED

Bank statement for the last six months.
Income Documents e.g. Latest Form 16, Certified IT returns for latest 3 years.
Admin Fee cheque.
Loan Enclosure letter.
Other Documents

For Individual Borrowers:
Photo Id Proof
Residence Address Proof

For Non Individual Borrowers:
Id Proof
Office Address Proof