Monday, June 27, 2016

HOW TO SELECT FINANCIER TO PURCHASE YOUR HOME



You need to bear in mind certain parameters while selecting your financier for purchase of house.  The parameters mentioned below are worth considering:

Type of product – Whether the financier is offering loan product to suit your requirements.

Tenure - Whether the financier is offering the tenure of loan that you are look for.

Rate of interest - This would depend on the type of rate of interest that you are looking for i.e. fixed floating or partly fixed and partly floating.  You must always compare the effective rate of interest after taking in to account all upfront fees etc., and the manner of interest calculation i.e. monthly reducing, annual reducing etc.

Minimum loan amount- the minimum loan amount offered by a financier is important to find out if the financier can finance the amount you are looking for.

Maximum loan amount- Most HFIs has upper limits on the amount that they would finance you.  If you are looking for very huge amount, this could be a factor that needs to be considered.

Minimum age of customer - you will have to consider this factor to see if your fit in to the age norms lay down by the HFI.

Maximum age of customer - This would also form a parameter in your decision in deciding a HFI to finance the purchase of your house.  

A minimum income- The income norms of the HFI will be a relevant parameter that would affect your decision.

Requirement of personal guarantors -Some HFI is insisted on a personal guarantor.  You need to check this out if you have any reservations about providing a guarantor.

Requirement of co-owner - if you intended to buy your house along with a co owner you will have to check up whether the HFI accepts the relationship between you and the co owner.

Requirement of co-applicant - as mentioned for co-owners, the HIF may also insist on certain relationship as co applicant.  This needs to be checked up while deciding your financier.

Prepayment charges- some HFIs charges certain prepayment charges when you decide to prepay your loan either in part or in full.

Processing fees – HFIS charges certain fees as processing fees that you will need to pay at the time of submission of application.  Kindly check this out before selecting your financier.

Administrative fees- HFI s also charge administrative fees on the loan amount that has been approved by the HFI.   This would vary from one HFI to another.

Credit documents - the type of credit documents that HFI s insist before approving your loan would differ from one HFI to another.

Maximum age of property at the time of application – If you are buying a property on resale, this parameter would be an important factor as HFIs may have a limit on the age of the property at the time of disbursing the loan.

Pre approved property list – Most HIFs have a pre-approved list of properties available for which the documentation would be simpler.

 Preapproved list of employees HFI s may have special rate, if you are an employee of one of its preferred list of employees.

Pre approved builder list – HIFs may also have different norms or documentation if you are buying a property is any of their preapproved list.

pre approved project list – HFIs as mentioned above for builders, may have separate scheme for certain projects.

Pre approved profession list HFIs may have certain scheme to suit customers of certain professions.

The above mentioned are some of the parameters that you will need to look into before deciding your financier.  Getting a financier who would offer you the best in all of the above parameters is virtually impossible.  You would, therefore, need to identify your priorities and the check out as to which financial would give you the best option.

For More..........:

No comments:

Post a Comment