After scurrying through various choices and brain storming decisions regarding the location, amount required to purchase the house, the loan amount involved, the period of repayment, you finally decide to settle for your dream home. Although you do realize at the back of your head that it was a big decision since the repayment period is about 10-15 years.
Now before making such hasty conclusions, make sure that, before you sign on those sheets of legal documents, think about how these long term loan repayment period impact your finances for several years. The most what you could do is read at least the sanction letter, may be, not the entire contract, although it is advised to do so.
Some banks charge consultation fee or inspection fee and some charge, what is popularly known as the processing fee. There are certain banks who insist on the loan borrower to inform the bank about any changes in their professions as in their employment or business, w.e.f 7 days of such change. Which could also mean that , under any such circumstances, the entire amount becomes due with immediate effect.
Looking forward, it could lead to the borrower’s redirection of any amount due, which the borrower has to receive from their employer. But mostly, banks do not opt for such a routine. But, the best you could do is to read the fine print carefully to avoid any such future shocks.
Usually, banks give out draft copies of home loan agreements so that the borrower can analyze the terms and conditions regarding the duration and the amount of interest for various housing loan schemes. Get a copy of that and also get a thorough understanding of your respective loan agreement. If in any case, you feel that your bank has resorted to utilizing any unfavorable measures, you can always approach the consumer courts for seeking a redressal for your grievances. Prior to that, do make sure, all the redressal procedures provided by the bank has been approached.