See also: How to choose the right bank for a mortgage? Note that when submitting their loan application, the applicant must provide copies of the ownership documents, but must provide the original documents with eligibility if the bank`s legal team is visiting to inspect the property. Since the team would conduct a visit at a predetermined date and time, the buyer should contact the seller and ensure that the original documents are ready for inspection. The technical control is carried out on the basis of the plot map, which shows the extent of the plot on which the house is to be built. In addition, the technical team also validates the structure of the property to see if it matches the map. Any change beyond a set percentage can cause banks to raise the interest rate. After that, the evaluation report process begins. The technical audit team not only assesses the extent of land use for home construction, but also looks at labour costs, the cost of materials purchased, and other details about ownership. This gives the technical team an idea of the cost per square foot of the property. The legal and technical review of real estate plays a crucial role in the approval of real estate loans. Legal review ensures that your property does not get involved in legal complexities. Plus, you can stay away from legally controversial real estate transactions.
The Certificate of Charge is a legal document that contains detailed records of all your financial transactions related to the property pledged for the home loan. This can be retrieved from the local registrar. If you have withdrawn the disbursement from the loan, it may have been secured by your assets, for which you may have given the financial institution the original real estate documents to keep. On the other hand, the lender would have provided you with a list of documents (LOD). Take this LOD with you when you visit the lender to complete the closing formalities and match the physical documents to this list. Since buying a property is one of the most important decisions in life, it is very important to understand the legal implications of the different clauses of the real estate purchase agreement. People typically hire real estate agents to draft a real estate purchase agreement, which usually involves ephemeral work of “finding and replacing” an old contract without understanding your particular situation in order to keep costs down. Khata is one of the essential legal tax documents. It is required while each property is licensed for trade. Khata is basically an account of a person who has a property in Bangalore that contains the tax details of the property.
This Khata account is essentially with the Municipal Corporation. 4) Payment Process – After successfully completing all the above processes, the last internal process is for the disbursement of the home loan/mortgage. A payment is the process of another 7-8 business days. A playbook kit (lender payment agreement kit) is duly signed by a borrower and a co-borrower. All original real estate documents must be presented to the lender along with the playbook kit. The lender ensures that the borrower pays all the costs of the loan such as processing fees, administrative, legal and technical fees, postage and stamp duty, etc. before the final payment of the mortgage amount. The detailed payment process is as follows: f) Approved cases are then sent to the sales hierarchy for processing fees and rate approvals. (Must read – All expenses incurred to qualify for home loans) In addition to legal checks, banks also carry out the technical valuation of the property. Many banks have a list of approved projects, and if you buy an apartment in the bank`s approved project, there will be no legal and technical valuation of real estate. Indeed, the lender has already assessed the legal and technical characteristics of the project as a whole.
Buying a property in an approved bank project saves a lot of time spent on credit checks. Housing loans can meet all housing finance needs. However, to do this, they need certain documents to be sure of the borrower. Housing loans are also secured loans. Therefore, lenders must have the real estate documents before approving the loan. Different lenders have their own requirements, criteria and required documents. Based on their observation, the technical evaluation team sends a report to the bank indicating the value of the property. Since banks typically offer 80% of the total value of the property in the form of a home loan, you would expect to receive 80% of the value of the property as assessed by the bank`s technical appraisal team. The processing time for a credit penalty can be up to 5 to 7 business days, which still differs from lender to lender. The sanction letter is valid for a maximum period of 1 year, according to the lending bank/NBFC.
Usually, a home loan is classified as a fair mortgage where no lien is made at the shelter office. However, there are situations where the lender would create a registered mortgage on the property. This can happen if the lender is unsure of the borrower`s ability to repay or if there appears to be an anomaly in the legal transaction of the property. Lien marking gives the lender a collection advantage in the event of default. You should seek expert advice if a chain of title document is missing before contacting the lender for a home loan. It`s not a bad idea to get a clearance certificate from a reputable lawyer. Although it is not mandatory, but may be useful in the future when selling the house. All of your credit history, from payment to closing, is registered with the four different credit bureaus in the country. Make sure this is updated by the lender within 30 days of the end of the loan. 2) Technical Process – A physical inspection of the property is conducted to determine the current market value and age of the property to determine that the lender is not overestimating the cost of the property. The real estate technique is again a 3-5 business day process and is usually carried out by external agencies under contract from the bank/NBFC lender.
The Xerox of real estate titles, i.e. the copy of the contract, the index 2, the CB, the property tax, the CC copy and the plan are given to these agencies to generate the techniques. The generated technical report is delivered to the respective loan processing industry. There are many reasons why people transfer their home loan from one financial institution to another. The most important reason is a lower interest rate, which saves the cost of borrowing. You need to identify the purpose of transferring the loan before you actually do it. The process of transferring home loans is not much different from applying for a home loan. For this reason, the documentation part is very important to transfer the mortgage from one financial institution to another. The process includes not only documentation, but also document validation. The documents are validated by the bank or NBFC to which you are applying.
It must be accepted that the reliability of a person is decided for reimbursement from the documents that the person has to offer. The applicant`s records indicate whether they will be able to repay the loan amount or not. The key documents required for home loan transfers are as follows: Since you are probably not aware of the professional skills of the legal advisor hired by the lender, it makes sense that you have your own legal advisor to perform the due diligence from your point of view and obtain satisfaction as to the proper compliance with the various laws applicable to the building. including local state and municipal laws. In credit checks, these documents are used for legal audits. This means that these documents are used to verify that the property has a clear title and that the home loan is paid to the correct owner of the property for legal and valid reasons. No lender ever finances disputed real estate or real estate that does not have clear title deeds. You should ask the seller to provide you with the real estate chain. They may give you photocopies, take them and give them to the legal examiners for review.
In case the seller has sold the property to someone else, it can be seen through the chain.