What After Banks Accept Your Home Loan Application?

Change certainly is the only constant, but not many of us like constant changes, especially if we have spent a great deal of time working out the details of a well-defined plan. We would like things to go exactly how we had planned them to go. Home buying, for instance, is serious business and buyers want to tread a path they have carefully devised to complete this all-so-complicated journey. But, since, change is the only constant, like everyone else, homebuyers, too, should be prepared to make quick changes in their previous plans even after they have been able to find the perfect locality, the perfect property for the perfect price.

The seller might be in a hurry

All sellers, as a matter of fact, are in a hurry to complete the deal, get their money, and be on their way to reinvest it as quickly as possible. Some, however, are far more hard pressed than others. In case the seller of the perfect property that you have chosen is, say, a non-resident, he will be in a hurry to complete the transaction within a specified time. If the seller is someone who is in urgent need of money owing to a personal reason, he, too, would be overeager to receive the money as quickly as possible. Since most of us depend on financial institutions to purchase homes these days, the situation might get tricky for the buyer.

The bank will take its own time

Banks, as a matter of fact are going to take all the time they need to do their part of the due diligence. And, you have to believe that is not only for their own good; they are also doing you a great favour. In case there are any legal or technical issues with the property, the bank would identify and refuse to sanction the loan. It would save you from getting into a transaction which might have got you into trouble otherwise. While the bank is working on your home loan application, the seller would call you several times in a day, looking for updates. The nervous energy shown in the seller’s behaviour is going to keep on the edge. Even if you act pushy, the bank is going to take the time it has.

There are several small financial transactions that have to be done during the purchase process. For instance, before the bank sanctions you the home loan, it would ask you to present before it that your side of the payment has already been made, that you have already deducted one per cent TDS (tax deducted at source) from the amount (this rule applies only in cases where the total value of the property is over Rs 50 lakh), that you have also already paid the stamp duty and registration charges and that you have booked an appointment at the Sub-Registrar’s Office.

Typically, banks send a representative at the Sub-Registrar’s Office with a cheque that is directly given to the seller. Getting all these works done within a specified timeline while constantly communicating with all parties concerned can be an absolutely testing affair. While all this unfolds, a buyer will have to juggle between so many things and make several big and small changes while keeping his cool.

Here are certain additional things that you will be doing while you are at it.

*Out of nowhere, several small expenditures that you never thought of are going to pop out their heads. No matter how ready you have been for them, you could not have been ready enough. Keep in touch with someone who can help you with money as and when the need arises. The need, we assure you, would certainly arise.

*The bank will start charging the interest from the day it issues you a cheque. So, the repayment process would start immediately. Even if you bought a ready-to-move-in house, the pressure for the time being on you is going to be immense. After putting all your money in down-payment, you will also be paying the rent and the EMI.

*We live in a digital era and all big and transactions are done online. Several beneficiaries have to be added using netbanking to make all those big and small payments. This, too, is a time-taking job, and it is going to cost, too.

*You may have to open an account with the bank in case you already do not have one to make the transaction simpler. That is going to take time and money, both.

*You may have factored in all the running around you will have to do. Consequently, your travel budget is going to shoot, too.