What are the basic things to note when approaching your bank for a home loan?
The first thing is to have access to all the features of the system. You may be attracted by a mortgage ad, but it does not tell you about the multitude of formalities to be completed. By having all the features of the scheme in hand, you can check your eligibility in terms of income, age and other specified terms and conditions. Otherwise, submission of inappropriate documents that do not comply with the features of the scheme can become the root cause of your loan application being rejected just at the first stage. Here you should also understand that you will be charged a processing fee in advance by the bank. Once your application is deemed ineligible for the loan, you will not be able to get a refund of the processing fee. This happens in most cases. Very rarely, banks refund these fees. So, apply only when you meet the eligibility criteria.
Many customers feel discouraged when the bank authorizes less loan amounts. This occurs when your ability to repay, which is determined on the basis of your monthly income, existing loans, the nature of employment and especially on the basis of your past performance in financial matters, does not justify the sanction of the total loan amount. Here you can increase your eligibility by getting a co-borrower to get an improved income bracket.
Another important thing to keep in mind is the appraisal of the property against which you are applying for the loan. It is also a common bone of contention between customers and banks, as a lower valuation impacts the amount of financing required by the customer. thus, before applying for a home loan, make sure you are fully informed of the valuation of the property. Have your property appraised beforehand by an expert approved by the bank.