It is payable at the time of filing of the loan application. This is non-refundable and is charged to cover the costs of determining the loan eligibility of the potential borrower.
File Charges:
These are charges for preparing the documentation. Some banks and HFCs charge this fee.
Legal Charges:
These pertain to the legal evaluation of the house documents. Some banks charge this separately.
Commitment Charges:
These charges are payable if the loan is not utilized within a specified period of time after sanction.
Arranging Home Finance (Home Loan):
This factor needs a special attention as ultimately you have to arrange to pay for the cost of the property.
Go to the different institutions providing housing loans and ask them to calculate and give you the “net” amount of money you will have to pay over 10-Yrs and the “net” amount of money you will have to pay over 20-Yrs. When we say “net” we mean that the money includes everything, the administration, processing and all other possible fees. Note all the different rates that all the different organizations give. This will give you the best idea about the different rates.
Equated Monthly Installment ("EMI") is the amount comprising a portion of the interest and the principal loan amount, which is payable by a borrower to the lender every month
Usually loans are disbursed within 10 - 15 days after completion of verification by the institution, documentation (original agreement for sale / lodging receipt) and completion of all relevant procedures.
Yes, you can avail for a pre approval from any financial institution. However all pre approvals has a validity period, which may be checked out with the concerned Financial institution.
Yes you can have your wife, son/daughter, father/mother as a Co-Borrower. However you are again requested to check with the Financial Institution regarding their permissible ownership grid.
