DOORVARTI SHIXAN KARYAKRAM BABAT PARIPATRA DATE- 16-12-2017.
Buying
a home is dream for many people. Owing to the rising price of
properties, it has almost become impossible for an average earning
person to buy a home on a lump sum payment. Therefore the concept of
home loan has come in trend. There are plethora of housing finance
companies and equal number of banks that offer home loans these days.
The task of selecting one company and one offer for home loan amidst the
thousands available options have become a very complex task owing to
the burgeoning housing finance market in the country. Apart from this,
there are intricate business jargons and technicalities that make this
task more difficult. Explore here the basics of home loan
technicalities, so that when you apply for the home loan next time, you
can understand the basics and help yourself remain away from the duping
elements in the market.
Home loans are usually accompanied by the
following additional costs: a) Processing fee: It's a fee payable to
the lender on applying for a loan. It is either a fixed amount not
linked to the loan or may also be a percentage of the loan amount. b)
Prepayment Penalties: When a loan is paid back before the end of the
agreed duration a penalty is charged by some banks/companies, which is
usually between 1% and 2% of the amount being pre paid. c) Commitment
Fees: Some institutions levy a commitment fee in case the loan is not
availed of within a stipulated period of time after it is processed and
sanctioned. d) Miscellaneous costs: It is quite possible that some
lenders may levy a documentation or consultant charges.