Factors That Keep Your Home Loan From Being Sanctioned

Owning a house is one of the biggest dreams that a person has. Everyone works hard enough to save money for a down payment. However, when you are about to apply for a home loan, you get turned down by your bankers. This mostly happens because lenders check your credit reportoften, your income and other essential details for deciding whether you are a good candidate for a home loan.

Here are some reasons because of which Cibil reports reject your credit worthiness.

Checking Credit Report

In case you have taken a lot of loans in the past or had taken on a number of credit cards, then your past loaners must have gone through your Cibil report. If you had applied for multi credit facility particularly for loans that were unsecured simultaneously, it might have sent a warning signal to your loaners. Numerous enquiries can work to bring down your credit score. It could be a problem for you when at the time of applying for a mortgage. In order to evade this problem, you should not apply for credit cards or loans at least 6 months before applying for a mortgage.

Poor Credit Score

People with poor credit history are often rejected by lenders. Poor credit score refers to issue of late payments, payments which were missed and similar problems. Also, your Cibil score would not be very good if you had always been nearing your credit limit on credit cards. Having a large number of personal and unsecured loans on your history of debt against secured ones such as car loans, could be held against you.

One type of credit or no credit

A lot of Indians still believe that a life of credit is a bad idea and therefore they do not take out loans or credit cards. This is an indication that you are not responsible enough to handle clauses of loans. It may not send out the signal that you want it to send out- that you have no credit history and hence are trustworthy. Therefore, you should have both unsecured and secured loans and must have met the criterion for repayment.

Mismatched Identity or Disputes in Cibil

There may be some problem with your CIBIL report because your past lenders may have provided incorrect information to them. In case there is a massive fault, you may be a victim of mismatching identities. Therefore, you should keep checking your CIBIL scores frequently enough to get these discrepancies corrected in time.

Not checking your credit score might have a lot of undesirable effects. For example, a credit card is one of the most common banking instruments in determining credit history. Indiscriminate usage would lower your score of credit and even spoil your chances of getting a home loan or get it at a very high rate of interest. Consider this instance that your friend and you apply for a home loan of INR 50 lakhs payable over 20 years. You got your loan at an interest rate of 10 percent per year whereas your friend got it at 12 percent per annum. A reason for this discrepancy may be that your friend’s credit score was lower. This 2 percent difference in interest rate could lead to a difference in interest payment of almost Rs 8 lakhs!

There a many ways in which your credit card could affect your chances of getting a home loan.

Using a lot of credit cards

If you have a number of credit cards to your name then it indicates that you have an appetite for credit. Carrying around a number of multi-coloured cards may seem fun but they can be a very bad signal as they show that you are a credit hungry person. An appetite for credit may lower your credit score and diminish your possibilities of getting a secured mortgage loan for house for sale in Pondicherry.

Carryover of balance frequently

Companies that offer credit cards make it easy for subscribers to pay a token amount and carry over their balance for the next period. By carrying over your balance, you would be losing out on free credit periods and paying a very high rate of interest. There are many hidden implications of carrying your balance over. They act a little too much on your score of credit as your outstanding loan amount rises and the defaults would show on your score and imply that no lender should deal with you. Therefore, your carried over balance may prevent your home loan application for house for sale in Pondicherry from getting passed.

High Usage of Credit

Using your credit card to the hilt may also adversely impact your credit score. For example, if a credit of Rs 3 lakhs is your ceiling on your credits and you have used it up to Rs 2 lakhs, then the credit rating agency might take that as a negative. To keep a healthy credit score, you should use only 30 percent of the credit limit allotted to you. On the other hand, non-usage of credit cards would not help to build up a payment history of credit and therefore, it will not be good for you. Therefore, you should use your credit card in moderation so that you can get a home loan at an affordable rate without hassles.

Credit Portfolio with a lot of Unsecured Loans

Your credit portfolio must have a healthy quantity of both unsecured and secured loans. If you have only unsecured loans such as personal loans and credit card balances, then your credit rating will go down. Therefore, you should balance your portfolio with secured and unsecured loans equally so that you don’t face any glitches.

Past Discrepancies that were unsolved

There may be some discrepancy in your credit rating or some disagreement about some charges levied by your bank. If you do not solve these disputes and keep from paying for them, then it shows up as outstanding in your credit account. This is classified as an amount for default and might blemish your report of credit. Therefore, you should get these discrepancies solved so that it does not tamper your credit worthiness and keep you from getting your dream house.

How To Buy A Flat Without The Help Of A Real Estate Broker

Quite a few real estate buying and selling transactions are made in a year without involving a real estate brokers in the business. Hiring an agent requires a lump some amount to be paid for carrying out the deal by the buyer. Sometimes the seller too needs to pay some amount to the real estate agent in this business. Some buyers especially those buying a real estate for the first time do not trust real estate agents and may seem to be tired of them. At times such feelings may be proven true if the agent is interested only in closing the deal and not interested in the deal. But, this is not the case with most agents. There are certain risks involved in working without an agent, which however can be overcome. All the paper works have to be done by the buyer himself/herself. Negotiations have to be done and many more such works. However a few things kept in mind will help a buyer make a nice buy without a real estate agent.

• Pre-approval mortgage: Once the mind is made to buy a flat it is necessary to be pre-approved for loan. It would not be certainly possible for anyone to offer full cash for buying a flat or house under normal circumstances. A pre-approved mortgage will ensure how much amount one is liable to get. This will help in making the deal in future while making an offer and negotiating with the seller. This secures the financing part. This will also provide assurance to the seller that there is back-up for the offer and that the buyer is a genuine buyer.
• Search for flat on sale: Now a search for the flat of your choice should be made. There a wide range of sources to search from. There are real estate magazines to look into. Those on sale by owners should be considered as the deal is going to be carried out without an agent. Then there are the newspapers who publish advertisements from sellers in both real estate sections and classified sections. Some real estate websites online provide advertisements with great details and are really good sources to rely on for flat buying. Lastly, one could take a tour at desired localities to search for flats on sale.
• Contacting the owner: This is a short but nevertheless a very important step. The owner is to be contacted once a flat has been targeted. It is necessary to talk to the seller and clear all doubts that arise in the mind before seeing the flat. After the talk make an appointment for viewing the place.
• View the flat properly: Once the talk is over it is time to make a complete tour of the place that the buyer wishes to buy. It is really necessary to see the place in person. The place could be visited on the own or the seller or listing agent could be taken along with for making the tour. However if the listing agent is asked for accompaniment make things clear beforehand regarding the pay. He might expect the pay that was supposed to be paid to the agent not hired in this case.
• Look for an attorney: A real estate attorney is a must while buying a house or flat even if an agent is not required. This attorney should be hired before the dealings have gone too far. It is better to hire one as soon as the choosing and contacting the owner of the flat is made. The attorney will be essential in making the final deal and as soon as the paper works start. For verifying legal matters and the authenticity of the whole transaction an attorney of real estate is necessary.
• Offers and negotiations: Once the right flat is chosen according to the desire it is time now to make the offer. Let the offers be made in clear terms without keeping any grey areas. The offer should be less than the listing price as the seller would not require paying the buyer’s agent as there is no agent involved in the whole dealing. Make the negotiations wisely until an agreeable term is reached. Make sure that all contingencies are included in the negotiation. It will save the buyer’s money if the deal falls for any reason. Everything should be put down in pen and paper. The legal attorney’s help should be sought in the matter.
• Inspection and appraisals: The inspection procedure comes up next. The buyer needs to be present in both of these along with the real estate attorney. Since an agent is absent the listing agent could be cajoled into take some extra effort.
• Contract and closing: After so much hard work it is time to close the deal. The attorney should check and review everything properly before the signing work begins. There might be quite a lot of papers to sign on the part of the buyer. The seller requires some signing too. Let everything be put down in writing. The mortgage will be processed and the deal will be closed and the flat finally belong to the buyer.

Buying a property is not impossible or difficult without the involvement of a real estate agent. There are myths flying everywhere regarding the cons of buying houses and flats without hiring an agent. These are only myths and one must look beyond these if serious buying of flat is in mind of a person. The secret is to know the tactics of real estate purchases and the legal matters by heart and soul. This knowledge would never let the buyer be deceived in any way. It would also not require hiring an agent and thus prevent paying extra that is the agent’s due. Involving an attorney is a must however. The simple guidelines given above would certainly be beneficial for an aspiring buyer of a flat to undergo a deal with courage, especially for first time buyers. Be courageous and be independent.

How To Sell Your House Without An Estate Agent

Property deals are very problematic and tricky these days. People are generally more anxious about buying property. They are more concerned about the nature of transactions and their sanctity. This has mainly happened due to the fluctuating and hazardous nature of the property market in recent times. Property markets have seen a drop in demand and this may be affecting sales of all properties in major Indian cities. People are finding it hard to get proper buyers for a house or even an apartment. Affordable housing is not always easy to find and hence mainstream buyers are staying away from buying homes and apartments directly from buyers.

Are you looking to sell off your home? Why are you selling off your home? Are you looking to earn a profit? Are you otherwise simply looking to dispose off the property as soon as possible at almost any sum you get? These are questions that you must ask yourself before deciding to sell off your property. Once you get the answers, you will have the right kind of perspective required before selling off any property. This will help you package your proposition accordingly. In today’s market it depends on the kind of proposition you offer. If you are simply looking to sell off your house at any good price you get, be sure to advertise something of that nature or make your intentions clear to potential buyers.

Alongside, if you are looking to get a good price and make some profits on your original investment in the home, you should be careful with regard to drawing potential buyers. The way you package your home will of course pertain to its importance as a high value investment. This will help you draw the right kind of crowd. The way you advertise your home and take a stance, will go a long way towards determining the kind of buyers you actually end up attracting. Some people cannot really draw buyers very quickly but this is possible with contemporary tools and other strategies.

You should be witnessing the rise and advent of agents and brokers in recent times. These individuals have monopolized the sector of late. They control real estate markets in most Indian cities and are often fearsome individuals with regard to operating on their own terms. They are an institution unto themselves and people still end up going to them and trusting them of their own accord. Should you be going for brokers and agents too? You should strictly steer clear of these scrupulous individuals if you want a smooth and hassle free transaction.

Many people will end up advising you to go to the nearest broker or agent as they themselves might have done in the past. Alongside, you will be given a talk on how brokers make life easier for you with regard to getting buyers for your home. While this may seem like a tempting and easy solution, you should firmly endeavor to market your property yourself without depending upon anyone. Firstly, it helps you stay in charge of everything and interact with potential buyers yourself. You will be the best person to provide information about your home to potential buyers and this is a big factor that you should keep in mind.

Alongside, agents and brokers often charge high commissions both from you and the buyer. This may sound trifling at first but it can lead to a huge dent in your pocket later on. Why should you end up paying a huge sum of money as commissions to your broker or agent? This sum will be better off in your bank account after the successful conclusion of the deal. As a result, you should always try to sell off your house yourself. A little research, effort and hard work will go a long way towards helping you market your property in the best possible manner. Learn all you can about the locality and its particular benefits.

Highlight these benefits wherever you can. Write your own sales pitch for the home and this should also include the facilities and other infrastructural amenities nearby along with access to proper transport networks and other recreational facilities. Write about the upcoming developments in the area and also the expected infrastructural growth of the same. Enquire about the prices obtained by sellers of houses in the recent past in your area and put yours on par with the same. Get the per square foot prices of property in your area and work out the accurate prices of your house. Package the house according to its best features and other highlights. Write the strong points of the house down for the benefit of prospective buyers.

Prospective buyers should be given a tour of the house and work out your deal very carefully. Do not go for the first available buyer if he/she offers prices that are way lower than what you expect or deserve. Use online classifieds portals to successfully sell your house without any agent or broker. Advertise your property on these portals under the requisite real estate section or category and watch people respond to your advertisement in droves. Be careful that you mention all necessary information properly in your advertisement. This is the first and foremost way of ensuring that people check out your home.

Always go for premium advertisements while advertising your home; this is about the only investment you will have to make. A nominal sum of money will get you phenomenal results while brokers and agents will only be charging hefty sums on the other hand. These strategies and a little effort on your part will help you avoid the clutches of brokers and agents. These individuals will only connect you with the right kind of buyers. You can do this yourself with the help of online classifieds and personal networking.

This will help you get more value for your transaction and sell your house without the assistance of any broker or estate agent!