Purchasing a new home comes with lots of money demand. For such conditions, people check out for Home Loan which is again an important financial decision. As it’s an obvious scenario that buying a home involves money or savings. Here in this blog, we will learn what all costs involved in Taking Home Loan.
Home Loans are considered as a one-time investment. There are additional charges or risk involved that may get levied once home loan gets sanctioned. When one applies for a home loan, they build a long-term association with the lender which could be of 15 to 30 long years. Let’s discuss various costs involved with Home Loan, which are generally not that highlighted by lenders.
Banks and NBFC’s charges a legal fee for the scrutiny of agreement of sales or purchase documents.
In case of opting some other borrower for cheaper interest rates. The lender is supposed to pay loan’s balance transfer fee to the current bank.
This covers the cost of credit appraisal. This ranges between 0.50 to 1.00% of the loan amount and plus taxes. Rest processing fee depends on the type of loan chosen by the lender based on his/her income.
The administrative fee is charged once loan gets sanctioned. However, fees given before this is known as processing fee. fee varies from vendor to vendor.
It’s an initial fee for conducting verification. It is also applicable as some lender requires some preliminary expense, and it varies in between Rs.1000 to 5000 approximately.
Applicable in case of NRI’s home loan. POA and KYC are required by any local notary which is located in abroad or by Indian embassy.
Central Registry of Secularization Asset Reconstruction and Security interest is to track and check for no fraud in leading against equitable mortgages.
In case the borrower fails to fulfill EMI for a month then recovery fee is charged by lenders. A lender will undertake procedure in order to recover the cost.
For getting home loan agreement signed and ESC mandate activated. For all this nominal fee of Rs. 500 to 2000 is charged.
Hence, it is always suggested to check all documents requirements, terms and conditions and related clauses before applying to Home loan to avoid any future discomfort. And also look for best home loan providers in India.