You need to bear in mind certain
parameters while selecting a financier and then take a decision accordingly.It
is certainly difficult to get the best in each of the following parameters and therefore
some sort of compromise needs to be done on the basis of your priori ties.
The parameters are mentioned below:
Type and
Tenor: Whether the financier is offering a loan product to suit
your requirements.Whether the financier is offering the tenure of loan that you
are looking for.
Rate
of Interest: This would depend on the type of Rate of
interest that you are looking for i.e. fixed or variable rates of interest.You
must always compare the effective interest rate after taking into account all upfront
fees etc. and the manner of interest calculation. i.e. monthly reducing,annual reducing etc.
Minimum
and Maximum Loan Amount: The minimum loan amount offered by a financier
is important to find out if the financier can finance the amount you are looking
for.Most HFIs have a upper limit on the amount that they would finance. If you
are looking for a very huge amount, this could be a factor that needs to be considered.
Minimum
and Maximum Age of Customer: You will have to consider this factor to see
if you fit into the age norms laid down by the HFI.This would also form a parameter
in your decision on deciding a HFI to finance the purchase of your house.
Maximum
Permissible LTV Ratio: The maximum loan that you would get as regards
the value of your house needs to be looked at. THE Components of the value
would also be important.
Minimum
Income: The income norms of the HFI will be a relevant parameter
that would affect your decision.
Requirement
of Personal Guarantors: Some HFIs insist on a Personal Guarantor.You need to check this out if you have any reservations about providing a guarantor.
Requirement
of Co-owners: If you intend to buy your house along with a
co-owner, you will have to check whether the HFI accepts the relationship
between you and the co- owner.
Requirement
of Co-applicant: As mentioned for co-owners, the HFI may also
insist on only certain relationships as joining your application as a
co-applicant. This needs to be checked out while deciding on a financier.
Pre-Payment
Charges: Some HFIs charge certain prepayment charges when you
decide to prepay your loan either in part or in full.
Processing
Fees: HFIs charge certain fees as processing fees that you will
need to pay at the time of submission of application.
Administrative
Fees: As mentioned above, HFIs also charge administrative fees
on the loan amount that has been approved by the HFI. This would vary from one
HFI to another.
Credit
Documents: The type of credit documents that HFIs insist on before
approving your loan would differ from one HFI to another.
Maximum
age of property at the time of application: If you are buying a
property on resale, this parameter would be an important one as HFIs may have a limit on the age of the property at the time of disbursing the loan.
Pre-approved
property list: Most HFls have a pre-approved list of properties
available for which the documentation would be simpler.
Pre-approved
list of employers: HFIs may have special rate if you are an
employee of one of its preferred list of employers.
Pre-approved
builders and projects list: HFIs may also have different norms of documentation
if you are buying a property in any of their pre-approved list of builders. HFIs,
as mentioned above for builders, may also have separate schemes for certain
projects.
Pre-approved
Professionals list: HFIs may have certain schemes to suit customers
of certain professions.
The above mentioned are
some of the parameters that you will need to look at before deciding on your financier.Getting a financier who would offer you the best in all of the above parameters
is virtually impossible.You would, therefore, need to identify your priorities
and check out on which financier would give you the best option.
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