Buying a home is dream for many peopl Owing to the rising price of properties, it ha almost become impossible for an averag earning person to buy a home on a lump su payment. Therefore the concept of home loa has come in trend. There are plethora housing finance companies and equal numb of banks that offer home loans these day The task of selecting one company and on offer for home loan amidst the thousand available options have become a very comple task owing to the burgeoning housing financ market in the country. Apart from this, ther are intricate business jargons an technicalities that make this task mor difficult. Explore here the basics of home loa technicalities, so that when you apply for th home loan next time, you can understand th basics and help yourself remain away fro the duping elements in the market.
Home loans are usually accompanied by th following additional costs: a) Processing fe It's a fee payable to the lender on applying f a loan. It is either a fixed amount not linked t the loan or may also be a percentage of th loan amount. b) Prepayment Penalties: Whe a loan is paid back before the end of th agreed duration a penalty is charged by som banks/companies, which is usually betwee 1% and 2% of the amount being pre paid. Commitment Fees: Some institutions levy commitment fee in case the loan is not availe of within a stipulated period of time after it i processed and sanctioned. d) Miscellaneou costs: It is quite possible that some lender may levy a documentation or consulta charges.
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