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10 Things to Check Before Buying a Flat Through a Home Loan

Things to Check Before Buying a Flat Through a Home Loan

There are many individuals in India who have the dream of having their own home or house. It would be not easy for them to do so without the help of a home loan. Home loans play a vital role to boost up the courage of an individual to buy a flat. But there are certainly other things to check before buying a flat or home other than the home loan. So, in this article, you can explore various things to consider if you are willing to buy a flat at a certain locality. You must first know all the criteria before finalizing any flat nearby your location.

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Checklist of Certain Aspects Before Finalizing a Flat

Before you finalize a flat for your loved ones and invest all your savings, you must know the financial features and aspects of the flat.

Final Price of the Flat

Most individuals buy a flat through a broker and some of them directly approach the owner. So, must negotiate the final price because the banks will give you a home loan only 80% of the price and you have to manage the rest of the 20%. The financed amount by the bank might vary as per the relations you have with the bank.

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On the other hand, the EMI on the home loan will not increase 60% of your net monthly income.

Flooring Area of the Flat

The flooring area is also known as the carpet area of the flat. So you must consider the thickness of the walls, staircase area, and many other areas before you pay the price on the quoted carpet area of a particular flat. The floor area you can use would be exclusive of the area of wall thickness, staircase, and elevators.

Background Check of the Land

You must inspect the condition and the soil of the land on which the flat has been built. On the other hand, you must also check the climate of the locality and other favourable conditions. It is really necessary that you should know the owner of that land and see that there are no objections from any third party.

Legal Check of the Flat

It is an important thing to check before buying a flat where you will find that there are no objections from any legal authorities:-

  • Sewage Board (No Objection Certificate)
  • Water Supply Department (No Objection Certificate)
  • Area Development Authorities (No Objection Certificate)
  • Municipal Corporation (No Objection Certificate)

Possession of the Flat

If you are buying a flat that is under construction then you must know the date of possession for the flat. You must also ask for the written documents to ensure what compensation you will get if in case the possession is delayed.

Financing Institutions

Some builders have a tie-up with some financial institutions from where you can take a home loan to buy the flat. But if you think that the home loan interest rate is high then you can contact your local branch in which you already have an account. You must choose only the lending institution that has an affordable rate of interest.

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Seller and Buyer’s Agreement

You must check the agreement thoroughly between you and the seller before buying the flat. The legal advisor can help you to draft an agreement and you can negotiate the term and conditions of it. You will have to pay token money to finalize the booking and then and there only you will have to negotiate with the terms and conditions.

Flat’s Location

Before buying a flat, you must see the location of the flat and the road connectivity to the hospitals, malls, schools, shopping areas, and other public places.

Hidden Charges on Home Loan or Flat

There are some hidden charges that you must know before taking a home loan from any financial institution:-

  • Home Loan Processing Fees
  • Stamp Duty Charges
  • Registration Charges
  • Other Taxes

Floor Position

The position of the story on which your flat is located might also be checked before the final approval. You must choose the number of the floor on which you want your flat before giving the token money and doing the price negotiations.

Conclusion

Well, you know the things to check before buying a flat through a home loan. If you check the above factors before finalizing a flat then you can crack the best deal. People usually buy a flat to spend their whole life and create memories. So, it is important to give a detailed look at the determining factors to make good and long-lasting memories.

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  • Home Loan Interest Rates October 2021
    Axis Bank6.75% - 7.20%
    Bank of Baroda6.75% - 8.25%
    Citibank6.65% - 7.40%
    HDFC6.70% - 8.00%
    ICICI Bank6.70% - 7.55%
    Indiabulls Housing Finance Limited8.65%
    Kotak Bank6.50% - 7.25%
    LIC Housing6.66% - 7.90%
    Piramal Capital & Housing Finance9.65%
    PNB Housing Finance7.20% - 8.90%
    Reliance Home Finance8.75% - 14.00%
    State Bank of India/SBI6.70% - 6.90%
    Tata Capital6.90% - 8.75%