What Are the Loopholes While Taking a Home Loan?

Purchasing a home is one of the dreams of every individual and everyone wants to purchase a home of ownership. Increasing costs of property and inflation has made it difficult to purchase a house of own. Here home loans have come as a good way to purchase our dream home now and enjoy this while the loan is being repaid over the years. Simple terms like best home offers and best interest rates are heard everyday but are not understood by all. There are various loopholes in the offers given by the builders and also the lending financial institutions.

Let us consider the loan amount availability. We give so much thought on selecting a place and area for purchasing a home. Rarely is it thought about that institutions do not offer loan on total amount of the property. Only certain amount is offered as home loan and rest has to be paid as down payment. This also caters to a substantial amount. The lowest interest rate advertisements are flashed everywhere and one can easily get carried away and select a home loan deal which may appear attractive but may make the client may more in the long run. Low interest rates may be publicised and interest rates for later years may be kept flexible thus increasing in substantial repayment amount over the years. Figures and quotes of amounts are only for indicative purposes in advertisements and the real figure comes to much more than mentioned by the advertiser. Property ownership and title deeds are never mentioned and one has to ask personally about the clear title and ownership of the property before going in for a home loan on the house selected. Many times other hidden administrative costs are not mentioned anywhere and all these come up during the final deal for the purchase of the house. Facilities like car parking, registration charges, stamp duty, society formation and other amenities offered are not mentioned with the deed and the borrower has to pay this amount on the purchase and this is also not included in the loan amount.

Hence one has to be very careful before applying for a home loan and selecting a home. Though purchasing a dream home is one of the best aims for every family and also there is easy availability of home loans, but still there are many points which if considered beforehand help to avoid financial stress and inconvenience later on.

Rizwana A. Mundewadi is a freelance Healing Artist and writer. Using her experience in the last decade she has been writing articles related to art, art investment, feng shui, symbolism, prosperity and good luck and has also added to this list her practical experiences with banking, loans and investments. Simplified facts about home loans can be found at http://homeloans-simplifiedfacts.blogspot.com without the technical jargon associated with this topic.

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