As promised I am planning to share the experience of getting the home loan approval and further stuff here.
Let me collect the thoughts and experiences till tommorow and aggregate it and dump it here.
Big thing on the list is clarify.
Clarification on the emi, emi time, pre-emi ( a fancy term for just charging you interest with no effect on the main amount) , terms of pre-part-payment etc, when is the interest calculated. This world of credit is what I wanted to stay away from but got caught in it :).
Added on 16th July 2007
We moved in. Puja/move was smooth. Registration was smoother becuase we had good broker (Anil/Raghu from Akanksha group – if any one is interested I can share the email/address/phone).
My procedure involved getting
3. Salary report for 3 months
4. Bank statement – 6 months
5. 2 photos
6. residence proof
Things which are usually not clear
1. Old houses will have Association whose terms and conditions can take you off gaurd. Let me list some
a. Move in charges of 1000 rs
– is it towards use of elevator/initial setup of house in terms of help provided for 10-12 nails/washing machine/aqua guard etc.
b. Transfer charges to be paid by buyer worth 30000 Rs
– for older associations this is way to build larger base for maintenance in face of rising costs
c. Maintenance charges (1600Rs*3 months)
In my case broker did not have inkling and pushed it on to me and seller to settle it . Since seller also claimed he came to know these things were news to him, I agreed to pay the transfer charges at the last minute. In my case seller has moved to us of a and out of touch with latest developments. So while buying old apartment – just talking to broker and seller will not help and you need to take extra step to meet with the manager/association president to get clarity.
d. pre-emi – This is an instrument of death and usually bad way banks make money for the ready to move in properties. When property is ready to move in and you are ready to pay the emi when required , I do not understand the need for the pre-emi. Here again the broker provided “bank loan expert” could not help much. We ended up paying 20 days of interest for the disbursed amount.
Good parts of the move
1. We got good broker(Anil) and good seller (SB)who were clean and simple. You need to have synergy with these people and mutual trust needs to develop. SB in particular was ok with out of station cheques and delay in bank process and also wanted clear deal.
2. Good Bank person in form of RR who was clean and straight forward. The other person at main bank (BS) was unfortunately never clear about the help/clarifications or documents.
3. Cost of the cable etc is lower due to the bulk captive customer availability.
Bad parts of the move/Buying
1. In the day of template and internet – easiest things which banks can do is keep template of the documents to carry and send it on email, showing procedure etc. In our case we kept on requesting what all is needed and this information never came from BS of hdfc bank till the last day. They did not even consider the request that we will pay the registration etc otherwise outstation cheques take long time to disburse, this resulted in last minute hassle. One needs to carry x post dated cheques(you need to listen to bank folks use the acronyms and as software person you will happy there are still some more to be learnt) and security cheque with actualy sale deed/agreement of sale form duly signed for preparation of cheque.
2. Disbursal of the loan cheque/dd itself – this is smallest step in the registration office but one where we wasted 3 hrs waiting for the courier gentleman to appear. This guy first demanded money to give the cheque indirectly and then refused to give the copy of the document. Apparently this person belongs to the bank – I need to follow up on the behavior.
3. Problems in the house – we found we ended up putting in another 10k -15k for basic repairs of the light fixtures/water/washing machine connection/cooking gas connection/broken rusted hinges, windows etc. These are the things you can’t really check up while you are visiting the house. We have had major problem with the door where whole door is coming apart. Unlike US of A where you can get professional checkup done at a cost this is more of trust and in our case SB was trustable and we did not enquire much. Unfortunately the pressure at home did not allow us to do the same but I would recommend anybody else to do thorough professional checkup.
4. Cost of vegetables, milk, condiments , household help is higher in apartments.
5. Maintenance is on higher side for the house
Few other things
Banks like to pay for registration and keep all orginals of everything including the agreement of sale, property taxes, khata, ec etc as was in our case.
Move needs to be planned well, rates vary from 3500 to 10k depending on mover, items, bedrooms and kind of packing/moving you want. In our case we packed most of our stuff excluding tv/refrigerator/washing machine/sofa/dining table. We also moved majority of smaller/glass/required for immediate use items ourselves in 2-3 trips.
You may want to move in day time early afternoon to avoid the school children moving about, rush of office goers and wait for lift(elevator).
Avoid weekends as the rush way too much everywhere. Avoid evenings in places like Bangalore – where it rains.
Once you move in you need to think of
– milk (get the stock till you decide in terms of tetrapacks)
– water (depending on hardness of water – you may want to opt for something else)
– connecting washing machine/water filter/lighting fixtures, setting up bathroom(supplies for bathroom)
– nearby shoping(provision/vegetable), medical stores, furniture, hardware in order of priority.
– connectivity (thanks to cell phone intra city tx are easy), internet/tv may need time depending on the provider as we found out our cable provider came within an hour vs tata indicom guy who never picked up the phone for 2 days.
– Cooking gas – easy inter city transfer
– Clothes drying (well it is green year – be kind to environment and use simple ropes 🙂 )
– Dishwashing (you will need maid help if you tend to keep things for later and they turn out to be costly)