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Buying a house is among the most important financial commitments that a person ever makes, and without a mortgage, buying a house will prove difficult for most people. Owing to its fast-growing cities, cheap luxury houses, and good connectivity with the neighboring cities, Zirakpur has emerged as one of the best destinations for real estate in North India. Whether you are buying your first house or investing in a property, it would be wise to learn all about mortgages.
This guide will walk you through the process of mortgage for properties in Zirakpur.
Home Loan is an arrangement where banks and other housing finance institutions offer you finance to enable you to buy/build a house. The house itself becomes security until the completion of the loan repayment.
Different types of loans include:
Some of the essential aspects of home loans are principal amount, rate of interest, tenure of the loan, and EMI (Equated Monthly Installment). Interest rates on home loans are fixed or floating as per bank policies.
A home loan is highly important because the property prices increase constantly. This is especially in places like Zirakpur.
Zirakpur is a residential destination owing to its ideal geographical proximity to cities like Chandigarh, Panchkula, and Mohali. It boasts of convenient road connectivity through the National Highway and its close location to Chandigarh International Airport.
Important factors that make an investment in Zirakpur attractive are:
Common real estate choices for investors are 2BHK apartments, 3BHK apartments, luxury flats, and detached bungalows. The reason being these factors, financiers are highly active in providing home loans here. Here’s the top 10 properties in Zirakpur to Invest.
The first step you should take prior to taking out a mortgage is to see if you can qualify for the same.
Most lenders consider the following factors:
Having a good credit score can improve your chances of getting the loan at favorable rates. In addition, your stability of work/business is checked by the lender.
Lastly, you must remember that the house in Zirakpur needs to be RERA approved compliant.
The choice of the right lender plays an important role since it determines how much you’ll pay over time.
Your available options are:
There are many popular lending institutions in India are SBI, HDFC, ICICI, and LIC Housing Finance. They all offer varied interest rates, processing costs, and terms of loans.
If you’re comparing different lenders, consider:
Some banks even have tie-ups with certain builders in Zirakpur.
Before applying for the loan, it is important to understand what budget would be appropriate for you.
Banks usually fund 75% to 90% of the cost of the property based on their criteria of suitability. The remaining amount needs to be paid as the down payment from your side.
For example:
Some of the factors which affect EMI include:
Your budget for EMI payments should not exceed more than 40% to 50% of your salary per month. An EMI calculator can help you to calculate your EMI amount.
Proper planning becomes essential especially when it comes to an expanding market like Zirakpur.
Documents hold importance when applying for a home loan. Improper documents will affect the loan application procedure.
Some of the required documents are:
Identity Proof
Address Proof
Proof of income
Bank Statement
Property Documents
The project at Zirakpur requires a proper understanding of RERA compliance.
Once the documents have been collected, you can go for online filling up or offline application of the form.
This process consists of the following:
Even the physical check of the property by the bank is done. It takes around 3 to 10 days for the entire approval process.
In fact, there are even pre-approved loans available for selected properties in Zirakpur.
It must be noted that there is a detailed process of verification carried out by the banks to confirm the status of property before approving the loan.
This process includes the following:
The property approved by the banks will be either RERA-approved or RERA-registered.
In upcoming areas like Zirakpur, extra caution is recommended for buyers.
If your loan application gets approved, the loan sanction takes place through the sanction letter which includes:
It is important to remember that the loan sanction letter is valid only for a limited period of time. Therefore, you need to move fast. Also, make sure you read all the terms and conditions mentioned in it before you accept it.
After you accept the loan sanction letter and fulfill all the formalities, your loan will be disbursed.
Depending upon whether the property is already constructed or not, the loan will either be completely disbursed or disbursement will take place on a stage basis.
The payments are made in installments according to the progress made in construction. In case of projects at Zirakpur, it is done according to the completion of different stages of the project.
Here are some suggestions that will help you to get your loans approved easily:
The above-listed advice will greatly increase the probability of getting loans approved even when the market becomes tough like in Zirakpur.
Also Read: Top 10 reasons for property investment in Zirakpur
Some of the mistakes commonly made by loan applicants are as follows:
Getting a mortgage loan for purchasing property in Zirakpur is very simple provided that there is a systematic approach involved in the whole process. From assessing your eligibility and choosing among different lenders to gathering required documents and checking legal aspects of the deal each step plays an important role.
People’s Property Point suggest that, an effective approach along with financial discipline and selection of the right property will help you get a mortgage loan and own your desired property.
Eligibility criteria for home loan application include being of age 21 and above, having a stable source of income, a credit score of over 700, and steady employment or business.
The banks will grant loans ranging from 75 to 90 percent based on the eligibility, earnings, credit rating, and property clearance. The balance should be paid as down payment.
The process of home loan approval generally takes anywhere from 3 to 10 working days depending on the procedures and requirements, which include loan approval from the bank and the documents submitted by you.
Banks provide loans to purchase under-construction properties, where loan would be released according to the progress made during the course of construction, and payments would be made directly to the builders.
Zirakpur is a wonderful place for investing, due to good connectivity with Chandigarh, latest projects, and proper infrastructure facilities available. This area offers better rental returns and budget luxury for investors/buyers.
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