A home is one of the most important assets of your financial security. Once you have your own home, then there’s nothing that can threaten your financial future. Buying a home is the biggest investment of someone’s life, so you need to keep all your short and long term goals in your mind before planning for it. A right purchase and best home loan should be in your priority list. Being aware of these two aspects can help you to avoid any debt trap in the future. Always look for the loan offers that suit you the best as your requirements and preferences are going to vary from others. Now you have better idea of the aspects you need to look out before you commit to a home loan, it’s time to tell you more about your rights as a borrower.

When you apply for a loan: When someone applies for a home loan, the lending institution is supposed to provide you all the information regarding:
• Applicable interest rates.
• Payable processing fees.
• Prepayment charges.
• Charges for converting interest rate types(either floating or fixed).
• Miscellaneous charges that might affect the interest rate on loan money.

When loan gets sanctioned: After your “Home Loan Application“ gets sanctioned, you have the right to ask the lender about following things:
• Terms and conditions of loan agreement.
• Sanction letter.
• Written receipt for all post-dated cheques.

During tenure period: In case you forgot or unable to make the repayments for any reason, there is a set procedure which may not cause a mental stress to you and lender has to follow for the recovery of outstanding balance that are given below :
• Reminder to the borrower through notice
• Notice prior initiating any recovery proceedings against you
• Sending an authorized professional who shall deal with the borrower in civilized manner
• Contact the borrower to maintain the desired decorum and decency.

After repayment: Once you are done repaying the whole loan amount along with interest rate, you need to ask the lender for following documents:
• No due certificate.
• Original documents of titles of property pledged as collateral for home loan.
• Unused post-dated cheques.
• Letter of final settlement signed by authorized official of the lending institution.

When you “Apply For Home Loan“ read the fine print carefully so that you won’t miss out minor details that could possible affect your finances in the future. You are supposed to know all the exact details of your loan and documents related to it. No doubt, there is a long list of things that you have to remember but keeping your rights in your mind will help you to stay calm headed in the loan journey as sometimes you are unable to get the assistance from your family and friends. You have to be sure about everything from your eligibility criteria and rights to the property you are buying. We hope you are more aware now about the rights you have while applying for a home loan to make your purchase a best decision of your life.

Having own house for an individual is the aspiration and dream of many life, as nobody wants to continue to pay the rent throughout their lifetime. Every person wants to get free from paying rent and for that, we have the benefit of home loan at ShubhBank which is the most beneficial loan in fulfilling your desire of having your own home. But before getting approved for home loan from the lenders may requires some amount of charges, which are basic costs and are levied form every financial and lending institutions. Generally, masses get so engrossed in the rates of interest and the EMI that they forget the hidden additional charges which are levied on them being borrower. Before applying you should have the proper knowledge of these different types of costs involved in securing home loan. Such of these costs are:

1. Loan Application fees- First of all, for processing your application, usually lenders require some amount of charges which may vary up to Rs.1000 to 5000. They are charged for the application purpose, to conduct the verification of your application and provided documents.

2. Processing Fees- Processing fees is the basic charge which gets deducted almost in every loan options, as it covers the cost of credit appraisal and it generally ranges between 0.50%- 2.0%, of the loan amount including the applicable taxes, which are levied.

3. Administration charges- When the loan quantum gets sanctioned from a lending institution, an administrative fee is charged. It varies from lender to lender regarding the charge.

4. Technical Valuation Charges- These are the charges which are regulated in the process of the assessment of the property. While you “Apply For a Home Loan“ at least two valuations are done; these are generally done in the case of high value property.

5. Balance transfer charges- These charges are levied when the borrower wants to transfer his amount to another lender. And to do so, he/she is supposed to pay the balance transfer charges to the current lender from which he has a running loan to another lending institution to avail this feature.

6. Legal fee- The fee is charged for the scrutiny of provided legal documents that include the agreement of sales or purchase of property.

7. Pre-payment charges- These charges are levied when the borrower wants to prepay a specific amount of loan in full or in parts. But if you have floating rates with your loan quantum then there is no need to pay it, but if you have fixed interest rates running then it is applicable.

8. Notary fees- This fee is levied for the KYC (Know your customer) documents or for the POA (Power of attorney) , in which it is required to get notarized from any local notary. This is basically for the NRIs, who want “Home Loans In India“.

9. Documentation Fee- It is a mandatory fee which is charged after the loan agreement is signed and ECS (Electronic Clearance Service) is activated.

It is very discouraging when your home loan application gets rejected. Let’s take a look at which could have possibly gone wrong rather than to dwell on failures. If your application has got rejected then learn from this experience as it will help you to identify aspects of your expenses that need inspection and improvement. Try to recognize your financial activity, such as delayed payments and eradicate them immediately. Being rejected for once doesn’t mean that you will never be approved. Let’s go through some reasons why your “Home Loan“ got rejected by the lender.

Unsatisfied Credit Report: Every lender considers your credit report as a reliable decision making tool before lending you the amount. Your credit report is consisted of missed or delayed card payments, previously loan applications and multiple loan applications. Therefore, such factors damage your credit worthiness. A low CIBIL score is the primary reason for the “Rejection of Home Loan Application“.

Insufficient Income: Unstable employment or changing too many jobs affects your loan application. Many lenders take your application on account if borrower has two years of constant employment. You need to have hand in valid proofs of working years to the bank or lender. The other factor is your income size, if your payment is too small, lender may not be willing to accept your loan request. It is good to start saving early as buying a home is one of the biggest investments.

Incomplete Paperwork: it is evident necessity for any loan application to submit updated and valid documents. In case of false submission, your application will not be processed. Lenders or bankers may look out for a clear track record of your ITR filings of the last two or three years before approving your application. Ensure the lender by providing accurate, complete and updated list of assets and finances to get the loan approval.

Pre-Existing Loan: Having too many loans in your pocket can leave the lender with a sense of uncertainty about one’s financial decisions. A lender will decide to approve your loan request after reviewing your income-to-debt ratio. If you are already donned with one or more existing loans, your liabilities should be greater than income to get the loan. Don’t be deterred by this and make a wrong decision.

Improper Asset Documentation: The rejection doesn’t always depend upon the applicant’s shortcoming, but sometimes, the value of the property may not be able to match the amount applied for. The high demanding properties have good resale value and a stable price whereas lenders do not prefer funding building older than 15 years.

If you are planning to get a Home Loan, enjoy the lowest interest rates and instant approval with zero paperwork at ShubhBank. If you are on the lookout for the online loan option or any other financial tool, you should take a tour on our website and take your pick. Now you know all about the factors responsible for loan rejection, it’s time to be aware of them.