Home loan dilemmas
One of the biggest hurdles are the land or house tax documents, which are actually the basis for assessing the mortgage application. At first, obtaining documents from the revenue department is a difficult and time-consuming task. The drafting of these documents, most of the time, is considered inappropriate within the framework of the ownership structure of the property (land or house). Then, it is the quantum of finance that triggers a controversy between the bank and the applicant. Often times we see the applicant dissatisfied with the amount of funding and complaining about underfunding. Before arriving at the funding quantum, the bank assesses the applicant’s repayment capacity. The repayment capacity is analyzed on the basis of some factors such as the applicant’s monthly net income, unpaid loans, financial history, repayment history, continuity of current employment or business, total number years of employment and the nature of the employment. And of course, the candidates’ CIBIL score will be taken into account to assess your financial situation.
The value of the property (in case you are looking for a loan for the purchase of a built house) or an estimate (in case of loan for the construction of a house) indicating the costs of carrying out the different stages of the construction are also related to the amount of funding. Banks have their own way of evaluating a property as they have their own certified appraisers who assign a value to the property according to their established parameters.