A Home loan is a long term legal contract between a bank and the customer, so knowing the legal terms and conditions included in the process is better for those who are planning a house in coming future.
While going through the process of a home loan a customer might face different type of legal issues. So avoid all those issues and to have a hassle free home loan experience, please follow the below tips and please be aware of the legal factors included in your home loan application.
1. Home loans process starts with the documentation in which the documents which you submit will have a great value in completing the case, so please do not submit any fake documents and don’t try to misguide the bank to avail the loan as the banks have the right to take legal action against those persons who tried to misguide the bank. Details which you mention in the application form should not have any discrepancy, banks will verify the details mentioned in the application and if the bank notices any discrepancy then it can reject the application form with out any prior notice.
2. Please keep all your receipts of the amount paid towards the credit cards which you settled previously because bank may ask for the receipts of the payments once the details are found in CIBIL.
3. When the customer submits the property documents banks will verify the property details given by you and the documents will be scrutinized by the advocates and search report will be obtained from the concerned sub-registrar office for the details of deeds and the vendors. If there is any discrepancy in the documents banks will ask the customer or vendor for clarification or for other supporting documents.
4. Property will be evaluated by the technical valuers and if any deviations observed in the property then customer need to submit additional documents.
5. Once all process is completed the vendor need to verify all his original documents with the bank official before disbursement of the loan and the customer need to submit latest EC recording all transactions of the property in original.
6. Customer need to sign all the legal documents and the Home Loan agreements in regard of the disbursement of the loan and the property will be hypothecated to the bank till the loan is repaid back in full after the registration. Customers are suggested to read the agreement copy before signing it.
7. If the customer gets defaulted in repaying the loan bank can appoint agents to collect the EMI’s from the customers and the customers will have to co-operate with them.
8. If the customer fails to pay the EMI’s then the bank will cease the property to cover the loan amount taken by the customers, and once this happens the customer will be added into the defaulters list of the CIBIL (Credit Information Bureau of India Ltd).
Every customer is suggested to take as much less amount as possible from the bank to save the interest paid on the loan to be punctual in repaying the loans to keep your credit history good.