I am a prospective Home Loan Buyer(Flat Identified), I have been trying to get knowledge in this area. Wanted to see if I am missing anything in the list of Questions that I would need to ask the Bank Representative(ICICI Bank). The Problem I am facing is unless I ask them(Bank Representative) specific questions these are not being disclosed, so looking for help from people who can gone through this process before to see if I am missing out on any major questions that need to be asked.
List of Charges –
Processing Fee – the amount is very low(Rs.2809/-(preferred employer scheme)) when compared to HDFC and SBI who charge Rs.10000/-. this difference is making me feel uncomfortable.
LegalValuation Fee – as per representative – no charges
Loan Disbursement Fee – as per representative – no charges
Stamp Duty for Creation of Mortgage – 0.5 % of loan amount is being charged by HDFC and SBI, but with ICICI they said, they are not currently taking this one. If Government enforces then they will ask us to pay at that time.
EMI –
I wanted to Pay EMI even during the under Construction phase, which the bank associate had specified that I have to explicitly specify in the application as “EMI under Construction” as Loan type. (This was not disclosed until I asked the Representative specifically). Else I would have been stuck in a situation where I would have to pay Pre-EMI till construction was over.
Home Loan Insurance –
Was informed it is not Mandatory. But have to check with him, if we can explicitly say we dont want.
I am planning to Protect myself with a Term Plan which I can pay from my pocket.
Pre-Payment Pre Closure Charges –
Have been informed that there are no charges for Floating Rate Loans.
But still want to check on the following.
1. Maximum Amount that can be paid as Part Pre-Payment(earlier they allowed only 25% of Loan Principal Outstanding that can be paid in a single year) ?
2. Minimum Amount that can be paid as part Pre-Payment(looking at the comments section on some of the questions, that it needs to be atleast 2 times EMI amount) ?
3. No of times Part Prepayment can be made in a single monthyearduration of Loan ?
4. How soon can I make a part pre-payment as earlier there was a time limit of 180 days from loan disbursement wherein we cannot pay any part prepayment. Representative said this is no longer valid, and we can pay as soon as we make the first EMI Payment.
5. Mode of Part PrePayment ?? can we use Online Facilities like NEFT ?(I have Personally used NEFT for paying part prepayment and EMI for a loan back with Syndicate Bank)
6. What if the Loan is closed within x number of years of opening an account ? any limitations.
Daily Reducing Vs Monthly Reducing Balance ?
Regards
Raghavendra
Though I have read very good reviews about SBI Max Gain Home Loan, the documentation that they require, I may not be able to provide it, hence skipping that.