Home loan is most important for taking home, but for that it is very important to know about the interest charged on it.
Buying a house or getting it renovated can be heavy on the pocket. When we need the most to make changes in the house or buy it, then we do not have enough money to meet these expenses. But we can avail home loan facility to meet our needs.
We calculate EMI along with other fees while applying for home loan. But in the midst of all this, we do not even look at the other expenses. Which banks very easily collect from you. Here we will tell you about some such expenses that you tend to overlook while applying for a home loan:
Processing Fee
To avail a home loan, you have to submit an application. With which the application fee is also added. This is followed by the credit underwriting process, which includes KYC, financial appraisal, employment verification, credit history assessment, etc.
Technical Appraisal Fees and Legal Costs
Lenders hire technical experts to know the condition and market value of the property. Its fee is also different, while this fee can be included in the processing fee itself. If you do not get the possession of your house after getting the loan, the lender takes a simple loan till the time of possession which is called ‘Pre-EMI’.
Stamp Duty and Registration Fee
After the sale deed is received, the original documents remain with the lender until the borrower repays the loan in full. In between all these there is a memorandum of deposit of title which includes stamp duty and registration fee. This fee is paid by the person taking the loan.
Home Loan Re-Sanction Charges
Home loan sanction does not have unlimited validity. If the borrower delays within the stipulated time, he will have to apply for re-sanction for the loan again. Which will be charged separately.
