Purchasing the house is one of the important blocks of your financial security. Other blocks of the financial security include building emergency funds, getting retirement on track, buying a car. When you have all these in place, there is nothing that can threaten your future. A right way to stay financially secured all the time is to keep all short and long term goals in mind while drafting financial future. of course, choosing a home and buying it with the help of the home loan is one of the most important aspects of building financial security in future. When you are opting for a home loan to purchase a home, it is important to know all the rights of home loan borrower to avoid miscommunication with the lender.
What Are The Rights Of Home Loan Borrower?
Get your hand dirty
Just relying on the friend’s suggestion to choose the lender for the home loan may not work for you because home loan requirements vary from person to person so, you have to get your hands dirty to reach the right lender that fits your requirements. When your home loan preferences are unique, your extensive research comes handy to pick the right one.
Decide about the factors that affect the home loan
Every borrower thinks of a budget while considering purchasing the home. Think about the maximum budget you want to spend for the home while taking different factors like interest rates, foreclosure fee processing fee that affects the cost of your home. You should make sure to read the fine print of the loan application to make sure that minor details in the fine print.
What should you know when you apply for a loan?
- Make sure you get these financial documents from the lender when you apply for home loan.
- Let you know the interest rate applicable to the home loan
- Processing fee payable
- Fee charged if the loan is rejected
- Penalty in case of delayed payments
- charges applicable in the case of interest rate conversion
- Any clauses that affect your interest rate
After the loan is approved
- Acknowledgement of the loan approval
- Terms of groove the loan
- Sanction letter
- Amortisation schedule along with receipt of all documents
- In case you are unable to make timely repayments of the home loan, there is a procedure which lender needs to follow for the recovery of the loan.
- The lender should provide timely notices to the borrower about the repayment of the loan and make sure to follow the principals of courtesy levied by the borrower.
- Should write to the borrower before initiating recovery proceeding and representative who shall deal with the borrower in the civil manner should handle this.
- should respect the privacy of the borrower and contact them between 0700 hrs and 1900 hrs
- After repayment of the loan, you should get no due certificate and all original documents of titles of the property.