Home Loan Pre Approval

Mortgage Advance Approval

When I get a pre-approved home loan for 50 lakes and a plot of land cost ing 45 lakes, can I use the entire home loan and not care about the down pay? That preapproved home loan means, on the basis of your personal earnings or wealth management account established by the Savings Banks, as suitable for home loans of Rs.50 Lakes. This does not mean that you will receive Rs.50lakhs for the sale or building of a house at any price.

This means that you are suitable from Rs50 leaks max for home loans.

Thus for a housing loan of Rs50 Lakes you should pay a down deposit of 10 to 30 per cent of the costs of the home to be bought or built from the housing loan. Neither of the banks would allocate 100 per cent of the costs of the home to the home loan.

Margin (down payment) for a loan would be urgently needed as the rationale for a loan is that the borrowing party should contribute to the value of the assets to be generated from the loan. Institutions will only provide loans amounting to 80-85% of the real estate value.

It is important to make the money available as soon as the loan is authorised in order to prevent delay. Each bank requires a down deposit as this is used as security if the debtor is in default. And, in the event that you neglect to agree the down amount when approving the loan, the bank has the right to terminate the authorized home loan.

A down deposit is obligatory for a loan, so keep your money saved for down payments. It could be a little plus minus here and there, but be sure you are going to need nearly 10 Lacs for the deposit etc. Before you can finally disburse the mortgage loan, you must make an own contribution of 20%.

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