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Disbursement of a Home Loan approval
Many
a time, we get queries from harried individuals who
have applied for a home loan from a bank and
received an approval letter. However, they get a tad
disappointed when this approval letter is not
accompanied by a regular sanction of the same. The
problem lies in equating the approval letter with an
actual promise for disbursement, which it definitely
is not. The bank is not bound to disburse the loan
amount that has been pre-approved. The act of having
received an approval letter from a home loan company
means that the bank or home loan company has agreed
to an eligible value for a loan for you. Be careful
because the amount mentioned in the letter includes
your contribution to the loan as well. The amount
mentioned in the letter is the cost of the property
the bank has agreed to finance. You are given six
months to apply for disbursement of the loan,
failing which; the bank is no longer obligated to
disburse the loan. However, if you have found the
property, which fits the loan amount, the bank will
go ahead and process the disbursement of the loan.
Bank refusing Home Loans
Sometimes, it so happens that a bank can also refuse
to disburse the home loan. This is because there are
certain fixed rules the bank must work along. The
bank will need the property to be approved by the
bank before disbursing the loan. If the bank has not
pre-approved the property they can refuse to
disburse the loan. However, the bank will definitely
have a system to inspect the property. If the
property is already on the list of approved builders
then the bank cannot refuse the disbursement, which
must be effected within fifteen days from the date
of application for disbursement.
Identifying the right Home Loan interest option
for you!
If you
are wondering which home loan interest payment plan
is better; floating interest or fixed interest on a
home loan, for you, you can safely bid adieu to it.
Stop wondering and start understanding these home
loan interest truths revealed: Fixed interest is
usually about two to three percent higher than the
present interest rates. This means that if the
interest rates increase to a higher rate than your
fixed rate, you will still be paying a lower rate
than the floating plan commands. The best choice
will be to choose a fixed plan and if the interest
rates are to go below the rate you are paying, you
can always re-finance at lower rates. Even with the
re-finance charges the banks charge, you can
possibly end up actually profiting from the change
over.
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