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.