every Someone wants to have a big beautiful house. But buying a house is a pretty big deal. For a common man, this is the biggest purchase of his life. People do not have such huge savings. In such a situation, they resort to home cooking. Almost all major banks and many NBFCs offer home loans to their customers. Home buyers have to keep a lot of things in mind while negotiating an IRS deal. If you are taking a home loan, then definitely know about the charges associated with the home loan.
Application fee
The fee charged for processing home loan application is called application fee or application fee. This fee is applicable whether you get the loan or not. This fee is not refundable. If you submit a loan application to a bank or NBFC and then change your mind, your application fee will be wasted. Therefore, before applying, make sure from which bank or NBFC you want to take a loan. It is taken in advance along with the loan application.
commitment fee
Some banks or NBFCs charge a commitment fee if the loan is not taken within a specified time limit after the loan has been processed and approved. This is a fee that is charged on undisbursed loans. This fee is usually charged as a percentage of the difference between the amount sanctioned and disbursed.
legal fees
Banks or NBFCs usually hire external lawyers to investigate the legal status of the property. The fees that lawyers charge for this are collected by financial institutions from their customers. But, if the property has already been legally approved by the institution, then this charge is not applicable. You should find out from the institution whether the project in which you are going to invest has already been approved. This way you can save legal fees.
prepayment penalty
Prepayment means that the loan holder pays the entire or the remaining amount before the end of the loan tenure. This causes loss in interest rate to the bank, hence to compensate this loss to some extent, banks impose penalty. These charges are different in different banks.
mortgage deed fees
This fee is charged at the time of selecting a home loan. This is usually a percentage of the home loan and forms a major part of the total fee paid for taking the loan. Some institutions waive this charge to make the home loan product more attractive.
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