Documents required before & after getting a Home Loan

Every individual nurtures a dream of building his/her own home. This could, for all practical purposes, be termed the first such dream towards establishing the independence and security of an individual or a family and thus, carries an immense emotional connect.

However, buying a home goes beyond emotions and involves intensive research. It is all about making the right decision, sieving through a host of options. Though it may seem that all banks and housing finance companies are eager to lend, getting a home loan could be a daunting task.

It is important for all of us to remember that buying a home is an important personal finance decision for every individual. Hence, a systematic and planned approach towards identifying a home and arranging for necessary funds is required. It is important to be familiar with how the home loan process works and the documentation required to avoid any last minute glitches.

While we will discuss the documentation requirements for a home loan both during processing and after the loan has been disbursed, here are some quick ‘did-you-know’ facts about home loans:

1. Home loans can be availed by individuals (salaried and self-employed), co-operative societies and corporate bodies
2. The home loan seeker can only avail a loan amount that does not exceed 75-80 per cent of the Market Value of the property
3. There are two types of home loans based on the interest rates - fixed and floating. A fixed interest loan is where the interest rate doesn't change throughout the loan tenure (Please check the loan agreement on reset clause of fixed rate). Floating interest loan, on the other hand, varies according to market conditions
4. If an individual is married to the home loan seeker and is an earning member of the family, the individual can become a co-applicant. This will substantially improve the chances of getting a loan as well as increase the amount of the loan
5. The home loan company determines the actual loan amount after taking into account factors such as repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, assets, liabilities, saving habits etc
6. An important criteria for home loan eligibility depends on the credit worthiness of the individual. Credit Information Bureau (India) Limited (CIBIL) provides a credit score on a scale of 300-900, based on an individual’s previous credit card usage, maintenance of their bank accounts, check bounces (if any), existing loans, loan repayments and the number of times you have applied for a loan or a credit card. Individuals with a high CIBIL score are more likely to get a home loan
7. The tenure of home loan ranges from 1-20 years. In some cases, loans up to 30 years tenure can also be availed. The term does not extend beyond the retirement age or 60 years, whichever is earlier (65 years for self employed individuals).

Documentation is a crucial element of the loan process. Given below is a list of basic documents required to apply for a home loan. However, the documentation requirements may vary basis customer profile, location of home, loan requirement and several factors.

List of Documents required at the time of processing:

For salaried individuals

1. KYC Documents
2. Salary slip for the last 3 months/Salary Certificate (If variable components like Over Time and Incentives are reflected then salary slips for the past 6 months are required)
3. Latest Form–16, if salary is over Rs 20,000 per month
4. Copy of all bank pass books/bank statements for the latest 6 months
5. Employers profile if it is a lesser known organisation

For self–employed businessmen

1. KYC Documents
2. Copy of last 3 years Income Tax Returns of the applicant along with computation of income, duly attested by a Chartered Accountant
3. Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm, duly attested by a Chartered Accountant
4. Brief Business Profile on the Letter Head of the firm by the applicant
5. Bank Statement for the last 1 year for Savings & Current A/c
6. Copy of either Shop & Establishment License/VAT Registration or any other mandatory license/registration
7. Copy of the Partnership Deed (if Applicable)
8. Copy of Tax Deduction certificate/Form–16A (if applicable)
9. Copy of Advance Tax paid/self assessment tax paid Challan

For Self–Employed Professionals

Apart from the above mentioned, for Self employed professionals the following documents are also required:

1. Copy of Educational Qualification Certificate
2. Copy of Professional Practice Certificate

For NRIs

1. KYC Documents
2. Salary slips for the last 3 months/Salary certificate (If variable components like overtime & incentives are reflected then 6 month salary slips)
3. Passport copy with valid residence visa page
4. Work Permit/Labour contract copy/Photocopy of Identity card or any other proof of work/employment issued by concerned government authorities
5. Property related documents, detailed cost estimates from an Architect/Engineer (from India)
6. Processing fee cheque drawn on the applicant’s bank in India or draft payable at the place where the application will be processed
7. Copy of all overseas bank statements for the last 6 months, if any
8. Copy of NRE/NRO bank statement of the last 6 months
9. Power of Attorney (POA) if applicant is not available in India for signing documents

After home loan disbursement

1. Storage of documents: It is advisable to store at least 2-3 copies of all property and loan related documents. Before handing over the original copies to the bank or a housing finance company, photocopies of all the documents should be in place.
2. Intimation of change in contact details: You should inform your financier about the change in your employment, residence address, contact numbers, email ids, etc so that the company could update your contact details and keep you informed on all your loan related matters.
3. EMI Payment on Due date: EMI needs to be paid on the due date to maintain good credit history. Any delay in repayment of loan EMI affects your credit history and gets recorded in the credit report which impacts your borrowing power adversely. Hence, due date of EMI should be remembered or noted to keep a check on any delay in repayment.
4. Income Tax Certificate for tax benefit: All income tax certificates to avail deduction on home loan interest and principal should be filed on record in case required for income tax assessment.
5. Loan under Pre EMI stage: If you buy an under-construction property, then till the completion you need to pay only interest on the actual disbursement. EMI would start after full disbursement of the sanctioned loan. You should ensure the bank is disbursing loan as per the construction progress of the project.

 

Contact Prestige Residency sales office to Know More @ 022 25985951 - 55

Housing Market of Thane Sees Consistent Growth

According to Report, Thane has come forth as one of the most attractive regions for investment in Mumbai owing to its exceptional connectivity, excellent infrastructure support and flourishing commercial as well as residential markets.

Previously, Thane was known as an industrial hub, but now due to several factors it is favouring as an upcoming realty destination. If we look at the real estate growth in Mumbai for last three to four quarters, it is clear that Thane has emerged as the face of real estate growth in Mumbai when compared to Navi Mumbai and MMR (Mumbai Metropolitan Region). As per data, average capital values in the zone have recorded an average growth of 1 - 2 per cent in the last one year. This can be attributed to its growing commercial, residential, retail and infrastructure development.

Realty in Thane is witnessing a healthy growth for the last few years owing to improved infrastructure, excellent connectivity and thriving commercial and residential activity. Various highways, proposed mono railway project, affordable housing market and good connectivity to Mumbai make Thane an attractive destination for investment. Not just new but many reputed developers are also moving towards the fringes of Thane for building there projects.

Thane was known to be an alternative destination for those who could not afford to purchase a house in Mumbai. However, it has turned out to be not just an attractive destination but also a case study in urban development. With respect to appreciation potential, physical and social infrastructure, rental market, total liveability index and launch to sales ratio of the housing projects Thane fares better than Navi Mumbai and MMR (Mumbai Metropolitan Region).

Thane has been selected as one of the smart cities to be developed in the country. This has further given a boost to the real estate sector here. The area provides for all segments of housing be it luxury, affordable or mid segment. Also people from the city are shifting towards Thane in search of homes that are competitively priced but do not compromise on amenities and open space.

Growth Drivers

1. Relative affordability

Thane has emerged as the preferred choice for real estate investment due to the relative affordability it offers as compared to Navi Mumbai and MMR (Mumbai Metropolitan Region). Since prices have sky rocketed in Navi Mumbai too, which was earlier considered as the affordable cousin of Mumbai, buyers have now started moving towards Thane. One can find affordable housing projects on the fringes of the city which offer compact 1 - 2BHK units with amenities like piped gas, gym, club house, swimming pool, security, rain water harvesting, intercom facility, etc.

For instance, capital values in major residential pockets in Navi Mumbai like Belapur, Kharghar, Panvel and Ulwe range from Rs 6000 - 9000 per sq ft while emerging locations in Thane such as Ambernath, Badlapur, Kalyan and Khapoli ofefer properties at Rs 3500 - 6000 per sq ft approximately. These localities are also potential investment destinations as these have witnessed a healthy appreciation in the last few years.

2. More budget housing Launches

While Mumbai is reeling under the pressure of low sales and unsold inventory, residential sales in Thane are on the rise. Established developers like Prescon, Lodha Group, Rustom Developers, Omkar Realtors and Aura Group. Have launched their affordable housing projects on the peripheries of Thane.

3. Infrastructure and Connectivity

What has worked out for Thane as an affordable and preferred realty market is the continuous improvement in infrastructure with the addition of new roads and flyovers, providing better connectivity by rail and road to other locations of Mumbai," adds Maulik Sheth. Some of the important projects include Santacruz - Chembur Link Road, proposed fourth phase of the metro, underground tunnel from Manpada to Borivali, two proposed monorail lines that will connect Thane with Dahisar and Kalyan respectively. At present there are seven flyovers for which work is in progress which will connect Thane with Dahisar and Ghodbunder with Bhiwandi.

With the proposed smart city project the realty landscape in Thane is set to improve further. Thus, thus seems to be a good time to invest here as property prices will only upwards from here.

Contact Prestige Residency sales office to Know More @ 022 25985951 - 55  

 

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Every individual nurtures a dream of building his/her own home. This could, for all practical purposes, be termed the first such dream towards establishing the independence and security of an individual or a family and thus, carries an immense emotional connect.

However, buying a home goes beyond emotions and involves intensive research. It is all about making the right decision, sieving through a host of options. Though it may seem that all banks and housing finance companies are eager to lend, getting a home loan could be a daunting task.

It is important for all of us to remember that buying a home is an important personal finance decision for every individual. Hence, a systematic and planned approach towards identifying a home and arranging for necessary funds is required. It is important to be familiar with how the home loan process works and the documentation required to avoid any last minute glitches.

While we will discuss the documentation requirements for a home loan both during processing and after the loan has been disbursed, here are some quick ‘did-you-know’ facts about home loans:

1. Home loans can be availed by individuals (salaried and self-employed), co-operative societies and corporate bodies
2. The home loan seeker can only avail a loan amount that does not exceed 75-80 per cent of the Market Value of the property
3. There are two types of home loans based on the interest rates - fixed and floating. A fixed interest loan is where the interest rate doesn't change throughout the loan tenure (Please check the loan agreement on reset clause of fixed rate). Floating interest loan, on the other hand, varies according to market conditions
4. If an individual is married to the home loan seeker and is an earning member of the family, the individual can become a co-applicant. This will substantially improve the chances of getting a loan as well as increase the amount of the loan
5. The home loan company determines the actual loan amount after taking into account factors such as repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, assets, liabilities, saving habits etc
6. An important criteria for home loan eligibility depends on the credit worthiness of the individual. Credit Information Bureau (India) Limited (CIBIL) provides a credit score on a scale of 300-900, based on an individual’s previous credit card usage, maintenance of their bank accounts, check bounces (if any), existing loans, loan repayments and the number of times you have applied for a loan or a credit card. Individuals with a high CIBIL score are more likely to get a home loan
7. The tenure of home loan ranges from 1-20 years. In some cases, loans up to 30 years tenure can also be availed. The term does not extend beyond the retirement age or 60 years, whichever is earlier (65 years for self employed individuals).

Documentation is a crucial element of the loan process. Given below is a list of basic documents required to apply for a home loan. However, the documentation requirements may vary basis customer profile, location of home, loan requirement and several factors.

List of Documents required at the time of processing:

FOR SALARIED INDIVIDUALS

1. KYC Documents
2. Salary slip for the last 3 months/Salary Certificate (If variable components like Over Time and Incentives are reflected then salary slips for the past 6 months are required)
3. Latest Form–16, if salary is over Rs 20,000 per month
4. Copy of all bank pass books/bank statements for the latest 6 months
5. Employers profile if it is a lesser known organisation

FOR SELF-EMPLOYED BUSINESSMAN

1. KYC documents
2. Copy of last 3 years Income Tax Returns of the applicant along with computation of income, duly attested by a Chartered Accountant
3. Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm, duly attested by a Chartered Accountant
4. Brief Business Profile on the Letter Head of the firm by the applicant
5. Bank Statement for the last 1 year for Savings & Current A/c
6. Copy of either Shop & Establishment License/VAT Registration or any other mandatory license/registration
7. Copy of the Partnership Deed (if Applicable)
8. Copy of Tax Deduction certificate/Form–16A (if applicable)
9. Copy of Advance Tax paid/self assessment tax paid Challan

FOR SELF-EMPLOYED PROFESSIONALS

Apart from the above mentioned, for Self employed professionals the following documents are also required:

1. Copy of Educational Qualification Certificate
2. Copy of Professional Practice Certificate

FOR NRIs

1. KYC documents
2. Salary slips for the last 3 months/Salary certificate (If variable components like overtime & incentives are reflected then 6 month salary slips)
3. Passport copy with valid residence visa page
4. Work Permit/Labour contract copy/Photocopy of Identity card or any other proof of work/employment issued by concerned government authorities
5. Property related documents, detailed cost estimates from an Architect/Engineer (from India)
6. Processing fee cheque drawn on the applicant’s bank in India or draft payable at the place where the application will be processed
7. Copy of all overseas bank statements for the last 6 months, if any
8. Copy of NRE/NRO bank statement of the last 6 months
9. Power of Attorney (POA) if applicant is not available in India for signing documents

After home loan disbursement

• Storage of documents: It is advisable to store at least 2-3 copies of all property and loan related documents. Before handing over the original copies to the bank or a housing finance company, photocopies of all the documents should be in place.
• Intimation of change in contact details: You should inform your financier about the change in your employment, residence address, contact numbers, email ids, etc so that the company could update your contact details and keep you informed on all your loan related matters.
• EMI Payment on Due date: EMI needs to be paid on the due date to maintain good credit history. Any delay in repayment of loan EMI affects your credit history and gets recorded in the credit report which impacts your borrowing power adversely. Hence, due date of EMI should be remembered or noted to keep a check on any delay in repayment.
• Income Tax Certificate for tax benefit: All income tax certificates to avail deduction on home loan interest and principal should be filed on record in case required for income tax assessment.
• Loan under Pre EMI stage: If you buy an under-construction property, then till the completion you need to pay only interest on the actual disbursement. EMI would start after full disbursement of the sanctioned loan. You should ensure the bank is disbursing loan as per the construction progress of the project.

 

Contact Prestige Residency sales office to Know More @ 022 25985951 - 55 

  

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

AUSPICIOUSNESS AWAITS

Are you a first-time home buyer? If yes, then this Akshaya Tritiya could be the perfect occasion to realise your home-buying aspirations

Recently, a home-buyer inquired about a very basic query to a con sultant: is the market conducive to buy an apartment on Akshaya Tritiya this year? The buyer, Dharmesh Verma, believes in the auspicious spirit of the festival but his question was more inclined towards the timing of the event, keeping in mind the price index, which has time and again been projected to `correct'. Most of the homebuyers, especially the firsttimers, get confused between the reports of a correction and ground realities.

“If you are an end-user, do not give any other thought and buy a property now. But if you are an investor, the answer depends on your investment horizon,“ was the consultant's suggestion.

“This is going to be my first property and hence, a lot of questions are plaguing my mind.But I have been advised by a number of experts that for an end-user looking for a house to stay in, this is indeed the best time to buy. The pricing index and its movement are factors that should bother the investors and not end-users. Over a long period of time, appreciation is quite obvious since the price point is very attractive at this point of time across the Mumbai Metropolitan Region (MMR),“ says Verma.

The slow moving market and the slower pace of appreciation across the MMR, might deter the spirit of the investors who have invested in multiple properties, but not the first-time home-buyers. As a matter of fact, for the end-users, it is an equal opportunity market, as many near-completion and ready-to-move-in properties are on offer. The price point today is very balanced and that may not be the case, post Akshaya Tritiya, keeping in mind the demand and supply equilibrium and the improving macroeconomic outlook.

Most of the analysts tracking the city's property market maintain that due to the way the economy is now consolidating and new launches, which are lesser as a result of policy ambiguities along with a hike in the Ready Reckoner rates, a price appreciation, post Akshaya Tritiya, is surely on the cards. The developers, on their part, have ignored the market signals and kept the price hike on hold since they have weathered a long spell of a slowdown.

Manju Yagnik, vice-chairperson of Nahar Group points out that the rates for the real estate sector has been quite stable for the last 18 months and this will remain unchanged during Akshaya Tritiya as well. Of course, in most of the cases, the revision has happened, post Gudi Padwa.However, developers usually come up with schemes and short-term incentives, which are time-bound to facilitate the buyers during this period.

“It is a strong belief that a high-value purchase on Akshaya Tritiya brings good luck. The market is witness to a lot of im portant transactions, purchases and launches. The purchase of a home, which is a once-in-a-lifetime investment in most of the cases, is preferred to be bought during Akshaya Tritiya. Developers also prefer to launch new projects on Akshaya Tritiya, as it brings in good luck. Considering all these factors, a buyer gets several options to pick from along with the added advantage of leveraging the launch rates, which are slightly lower than the usual ones. People looking at moving into ready-to-move-in apartments, can capitalise upon the ready facilities without waiting and move into their house on this auspicious day,“ says Yagnik.

Dibyendu Banerjea, director of Nouam, feels that home-buying is a very important decision as it involves an emotional as well as a rational bent. Festivals are considered to be prosperous and promising times for investments, especially Akshaya Tritiya. “The Indian property market, in the recent times, has witnessed an upward trend in terms of enquires and sales. Since Akshaya Tritiya is considered as an auspicious occasion for wealth-creation and good fortune, developers at this time, seek to capitalise on these festive sentiments via increased marketing efforts. In that respect, festivals like Akshaya Tritiya can act as a powerful market force,“ says Banerjea.

Historically, festivals such as Navratra, Diwali, Gudi Padwa and Akshaya Tritiya have been powerful magnets to bring the home-buyers into the market.However, this time, Akshay Tritiya makes even more sense because it is not only the festive spirit, but also the market momentum that is poised to be in favour of the home-buyers. It is not something that Mumbai's property market is always witness to, as the demand and supply dynamics more often than not, keep the market momentum tilted towards the sellers.

There is one more reason that promises to make this Akshaya Tritiya count in Mumbai's market. This year, the appraisals have been quite favourable in Mumbai Inc and most of the industries have been witness to a salary hike in double digits. So, the newly-found salary growth along with the luxury of choices in the property market, make it an ideal time for the prospective home-buyers to book an apartment now. Collectively, it looks like Akshaya Tritiya this year, might change the spell of the slowdown in Mumbai's property market.


Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Bring peace and harmony into your home with musical instruments

There are many ideas that you can use to make your home look and feel musical with musical instruments. You can bring in a feeling of peace and harmony into your home through musical instruments and the decor aspect they exude.

Even if you have instruments that are in a state of disrepair, display them. For example, brass horns can be turned into planters on the front door. Instruments can be turned into lamps, shelves, planters, tables, even garden art. Old sheet music can be framed and displayed, or covered to use as a lamp shade or on an old trunk. A guitar can be transformed into a unique night light, by removing the strings and inserting a light fixture into the hollow space. Sheet music can be glued inside for the finishing touch. An old organ keyboard can make a good piece of wall art and a smart shelf.

Global Collectibles

Musical instruments from all over the world are quite fascinating and can be used to up your decor quotient. When globe-trotting, keep an eye open for unusual instruments. African drums for instance, or Chinese bamboo flutes and gongs, cymbals, clappers and bells. Russia has a rich folk music culture. If you are lucky, you could get hold of the Balalaika-the most well-known Russian stringed instrument, resembling the guitar but with a triangular body. The domra is another Russian string instrument with three or four strings which is used to play the melody in Russian balalaika ensembles. While in Greece instruments like the laouto, tamboura, bouzouki and baglama are Popular.

Accessorise

Enhance your decor with drum tables. Made of beautiful rosewood with playing surfaces, these tables are functional and entertaining. Several drum table styles are available. Percussion instruments such as bells, cymbals, the gong, castanets, maracas, and rain stick as well as belly dance accessories make for excellent accessories in decor. You could hang graduated brass camel bells from the door.

 Contact Prestige Residency sales office to Know More @ 022 25985951 - 55 

 To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in