Hi, I had applied for a home loan from HDFC Bank for 25 lacs (20 yrs tenure). I got the approval letter from HDFC last week. Paid a processing fee of 11030/- and they have requested for the stamp papers worth of 0.5% of Loan amount (12500 rs) for mortaging.
All said and done, I just want to know what are the things I should take care henceforth so that I dont miss something and get into trouble in the future. Some questions that pops up as such, are
1. I will be surrendering all the original documents (Sale agreement, Sale deed, Construction agreement etc) to HDFC before first disbursement. Will they give any proof that they have collected so and so documents from me or should I request them for one?
2. In the approval letter, they have just mentioned that the interest rate will be 10.5% and the tenure and other stuffs. Though the HDFC agent says that there are no Part payment and preclosure penalties, will HDFC give these to me in writing?
3. What exactly do they print in the Stamp paper which I provide them? (Rs 12500/-)
4. If there is an increase in interest rate, then the bank will raise the EMI (as always). But what if there is a reduction in interest rate? I hope they will be charging some fee to the customer for reduction in interest rate, correct?
5. For repayment, ECS is better (read safer) or PDCs (Post dated cheques)?
Also let me know what other points should I note before taking the first disbursement?
-Muthu