Home Loans – Tips for Purchasing Property Under Construction

Home loans are a boon in today’s times as everyone can go in for purchasing their dream home at any time. Simple formalities and documents are needed to apply for a home loan and easy availability of home loans has made the purchasing of a new home a dream come true for many of us. Buying homes under Building Contractor Jobs has certain positive as well as negative points and it is advisable to understand them well before going in for a loan.
The area per square feet for under construction homes will be lesser than the amount quoted for the ready possession of a new flat. Here the customer can view the flat and decide upon the purchase. Documents are handed over and the loan amount sanctioned. EMI’s begin and in some time the purchaser gets charge of the property. For homes under construction this is not the case. Though the down payment as well as rate per square feet may be lesser there is always the unsure part of the future. Mostly people going in for the purchase of a flat are staying in a rented place and they have to pay the rent for that place as well as the EMI’s for the new home. As also the appearance of the end product may not be visible and later in the end the builder may cut short of some amenities and perks offered during purchasing time due to inflation. Here the purchaser has no option but to go in with the builder. Sometimes there are also property disputes and even though the construction has begun a legal stay order can stop all work and the project may be stranded for some time.
Home loan lenders do not consider all these problems and the client may have to pay the required EMI’s regularly even if the Building Contractor Company is on hold. Hence it is advisable to purchase a flat from a reputed builder. One can see their other projects as well as other sites for work under construction. Even the completed projects by the builders can be surveyed to make sure that their reputation to deliver homes on time is authentic. This will avoid a lot of stress and inconvenience for the purchaser and home loan taker as well as his/her family. If property is handed over to another builder as a result of legal issues then the new builder may quote new amended rules and orders which will have to be followed by the customer or they may have to let go of the place with the paid amount till time.
The most important thing is to always keep back up amount for unexpected circumstances before going in for a home loan. Do not put all your savings and income in one place, and think how much you can afford and pay over the years as EMI’s before going in for a purchase of a new home and procuring a home loan for it.