8 Reasons why your Home Loan Got Rejected

8 Reasons why your Home Loan Got Rejected

Are you disappointed and confused why your housing loan got rejected? Well, don’t worry we have got the answers for your question. In some cases, banks do reject home loan applicants for a wide variety of reasons. They may or may not mention the exact reason. We are listing out all possible reasons why your home loan can be rejected. It is wise to go through them before applying for a loan. Also Read: 10 Key Tips for Smooth Home Buying Experience Poor Credit Score Banks and financial institutions in India have developed a method to track your credit history. This information is freely available for lenders to verify when you apply for a loan. If you have defaulted on previous loans be it either housing loan, personal, loan, credit card payments, everything will be reflected in the credit score. If this is bad they might reject your loan application. The best thing to do is to check your credit score in advance before applying for a loan. Unapproved Builder/Project Each and every builder have tie-ups with different banks in your city. If you apply to a different bank, they might reject your application. Consult your builder and get to know which bank has pre-approved their project. This will save you a lot of time and effort. You might also end up getting a small discount in processing fees. Over-Valued Property It doesn’t matter at what price you and the seller have agreed for the property. Banks have their own professional visiting your property and doing their own due diligence. If their valuation doesn’t match they will not approve...
6 Important Things You Didn’t Know About Real Estate Agents

6 Important Things You Didn’t Know About Real Estate Agents

Are you planning to sell or buy a home through a real estate agent, then you need to know some important things about them. Real Estate agents are a great way to find potential buyers for your property. Most of the real estate agents charge around 1-2% of the property value as their brokerage commission. Before you hire someone, negotiate and finalize the brokerage percentage. Also, check his service record by talking to his references. We are listing some of the important things that you need to know about real estate agents. Also Read: Things to Consider Before Buying a House in a Gated Community Price Inflation: Most of the agents increase the price of your house than what you originally quote. Let’s say that your selling price is 50 Lakhs, they increase the price to 52 Lakhs and make a profit on the extra 2 lakhs. So make sure they sell at a price which is mutually acceptable for both you and the agent. Try to look for an agent who is transparent with dealings. They are Part-Timers: Most of the real estate agents in a city like Chennai are part-timers. They have more than one business running for their livelihood. Doing real estate alone might not be enough to run their families. So when you witness a delay from your agent, you can imagine that they may be occupied with other business too. Buy house cheaper without an agent: This statement is largely true. In most cases, you can get a house at a much cheaper price if you approach the seller directly than through an agent....
5 Things to Consider when Buying a Luxury Home

5 Things to Consider when Buying a Luxury Home

Only a handful of people in Chennai can afford to buy a luxury home and if you are one of them, then you should be really proud of it. The process of buying a luxury home is completely different from that of buying a normal home in India. Everything changes except for the registration and taxes. We have come up with a detailed guide on how to find and buy your dream luxury home. Must Read: 10 Key Tips for Smooth Home Buying Experience 1. Where to search: Unlike regular homes, luxury homes are not easily listed on real estate marketplace or newspaper classifieds. They are mostly sold by high-end brokers who have good contacts. The property is mostly kept the secret to safeguard the privacy of the owner. Don’t approach normal brokers for luxury homes. The best way to search is through personal networking. Spread the word among your friends that you are looking to buy a luxury home and they might know someone who is selling. There are also some clubs or societies for High Net Worth individuals (HNIs) where you can find suitable sellers. 2. Space: One of the basic factors that define the luxury home is the size of the house. Anything less than 3000 sq ft in the area could not be considered as a luxury home. Room sizes also make a statement. The master bedroom should be more than 200 sq ft and there should be enough open space to relax. 3. Amenities: Some of the cool facilities to look for in a luxury property are swimming pool lawn/landscape More than one covered...
5 Tips to Make the Right Property Investment for NRIs

5 Tips to Make the Right Property Investment for NRIs

NRIs are the backbone of the Indian Forex economy. They transfer the majority of their earnings back to India to their family for both expenses and savings. The primary mode of savings for NRIs is Fixed or Recurring deposit followed by Real estate property investment. Investing in properties in India for NRIs is a tricky preposition. The rules and regulations for NRI property investment are governed by Foreign Exchange Management Act [FEMA]. This article will guide you in the process of real estate investment in India. 1. Types of property: As per RBI guidelines, an NRI can easily purchase a residential and commercial property in India. The problem comes with farmlands, farm house, and plantations. Please go through these constraints before taking a decision. If you still prefer to buy agricultural land you need to seek approval from both RBI and state Government and it will be a long process. You should also first determine the objective of the property. The primary objectives could be Investment for capital appreciation Investment for rental income Self-occupation once you return Holiday Home Also Read: Property Registration Process in Tamil Nadu – Must Know 2. Housing loan: Similar to an Indian citizen, an NRI is also eligible to get housing loans from banks and financial institutions for buying a property. The interest rate will slightly vary for NRIs compared to residing citizens. The loan will be issued in Indian Rupee[INR] and should be paid back in INR. The lending bank will disburse the loan amount directly to the builder account. 3. Taxation Taxation is India is still complicated and the recently announced GST...
10 Key Tips for Smooth Home Buying Experience

10 Key Tips for Smooth Home Buying Experience

Buying a new home is not an easy task and people tend to make a lot of mistakes. This article will act as a guide for home buyers. 1. Buy when you are young: Once you have decided to buy a home, don’t waste too much time waiting for the right moment. Don’t be afraid of the EMIs or monthly commitments. The good thing with EMI is they are consistent throughout the loan period, but your salary will keep increasing. To start with, you might be paying 40% of the salary to the EMI, but in a few years, this percentage will decrease to 35, 30% respectively as your income goes up. So don’t waste time, buy when you are young. 2. Take a Wise Decision: Don’t consult 10-15 people about buying a property. Each and everyone of them would have faced a different problem or experince while buying their home. This will only add to your confusion and won’t provide a solution. Instead consult your family or close friends and take a wise decision whether a property is good enough or not. 3. Early Bird Offer: Most of the popular builders will throw an Early Bird offer where they will offer a hefty discount for first few buyers. You can easily save 10-20% of the property value if you are smart enough to get hold of this offer. Such offers are too good and will be sold out in just hours. So keep tracking the newspaper for such ads and make the best out of it. 4. Don’t buy only for freebies: It has become a common practice...
5 Benefits of Exclusive Property Listing

5 Benefits of Exclusive Property Listing

The process of entering into a contract with a real estate agent or real estate portal to sell your property exclusively is called exclusive listing. You cannot list your property elsewhere. The duration is normally 3 months or more. The agent has to sell your property within the 3 months at the price mentioned by agreed by both of you. This is basically hiring an agent/website for selling your house and they will be compensated in the form of commission once the sale is achieved. Now let us look at various benefits of this exclusive listing. Benefits 1. As the property owner, you are completely free from all responsibilities. It becomes the duty of the agent to handle all calls and visits regarding the sale. You can give him a call periodically and get updates. You don’t need to focus on the sale on daily basis. 2. You just need to communicate only with this single agent and the communication is simple and straightforward. Generally, you will list the property on many websites and get calls from different potential buyers and also brokers. It becomes a hectic process to handle all those calls. If you opt for exclusive listing, then you need not worry about the communication. 3. There won’t be any confusion about the property price in the market as this is handled by just one agent. Usually, when a property is handled by many agents, each agent quotes a different price causing the valuation to increase which leads to a delay. With a single agent, it becomes transparent and fast. 4. As an agent, you can focus...