Gone are the days when buying a house was one thing for the “settled” people, because young people now make it a priority over other investments.
New Delhi | Abhinav Gupta: When we talk about the biggest financial investments of a lifetime, buying a home is definitely at the top of the list. Gone are the days when buying a house was one thing for the “settled” people, because young people now make it a priority over other investments.
However, buying a home can prove to be a tedious task, especially for those who are considering obtaining a home loan for the same. After finding the right home that meets your needs and budget, getting a home loan is another thing that requires many factors to consider.
To get answers to all these mortgage related questions, Manish Mishra and Abhinav Gupta of Jagran New Media had an in-depth discussion with Pankaj Mathpal, CEO of Optima Money Managers and tax and investment expert Balwant Jain as part of of the Jagran Dialogues initiative.
Here are the excerpts from the round table:
Q. What are the factors to keep in mind when using a home loan? What documents do I need to provide?
Pankaj Mathpal: First, your income must be sufficient to repay the loan and this is the first thing that a bank or financial institution takes into consideration before granting a mortgage.
For salaried persons, generally three-month payslips, income tax returns, form 16, six-month bank statements will suffice. If you are self-employed, a minimum RTI of three years, balance sheets, income statement must be submitted to establish that you are eligible for the loan.
Secondly, showing proof of identity such as Aadhaar card, PAN card and other KYC documents is also mandatory.
When buying an apartment or building a house, it is important to check property documents carefully. Also, it often happens that you get a loan sanctioned when the asset is not yet identified. In this case, the loan will be disbursed once the documents have been verified.
Q. What if one or two NDEs are not paid on time to the bank or if the CSE bounces for some reason? What consequences will the borrower have to suffer?
Pankaj Mathpal: If someone is unable to make one or two installments, the bank will charge interest on the pending payments, but if this happens in the longer term, the borrower will be notified. However, it should be noted that only the title deed is mortgaged, the bank will therefore have to obtain a formal notice which involves a long process.
So, it’s not that the bank will foreclose the property if two or three IMEs are paid on time. But if one is a voluntary defaulter and does not wish to repay the loan, then the bank will consider it as a non-performing asset (NPA) and take the necessary actions against the borrower.
Watch the full discussion here: