HOME LOAN LOGIC

HOME LOAN LOGIC-1

The reason why a bank or home loan
company gets so deeply into the nature
and situation of an applicant’s
employment is that they need to gauge
how reliable a risk he is. There are
certain classes of jobs that inspire more
confidence due to the stability they
offer to the employee. This stability is
not judged by the take-home income but
by potential consistency. Therefore, if
you are applying for a home loan, it
would be best to make a personal
evaluation first.


HOME LOAN LOGIC-2
In addition to all legal documents
relating to the house being bought,
banks will also ask you to submit
identity and residence proof, latest
salary slip and Form 16 (for business
persons/ self-employed) and last 6
months bank statements/ balance
sheet, as applicable. You also need to
submit the completed application form
along with your photograph. The loan
applications form would give a checklist
of documents to be attached with the
application

THE NORMS FOR REGISTRATION 
Registration is normally done only after
payment of proper stamp duty as
regards to that document. Registered
document serves as proof of payment of
proper stamp duty. However, the subregistrar
can refuse acceptance of document
for registration on the fact
that the proper stamp duty has not been
paid. The reason for this is that the subregistrar
is not a collector, who can impound the documents. 

INVESTOR ADVICE
From an investment point of view,
buying a house is often likened to
buying gold and putting it in the bank.
That is true to some extent. Investments
in real estate, historically, have given
very good returns, if held for a long
period. In other words, buying property
does make a certain amount of financial
sense. Before utilising your loan or
putting your own money down, calibrate
the options well to judge whether your
investments today will yield desired
results before you plan to sell off.