3 Tips for Home Loan for the Projects that are Under Construction

by Finway FSC Empowering People Financially

The house construction loan will be given to the builder directly if he applies for the loan. The builder will be paying interest on this house until he/she hand over the keys to the customers. These customers will be paying the EMIs for the house only after possession.

If you are someone who invests in the properties, then it is very common for you to get a home loan for under construction property. These simple tips will help you in maximizing the profit on investments.

Be Wise when Negotiating with a Builder

No matter how reasonable the price builder quoted sounds, make sure to negotiate with him. The builders quote the price by considering all kinds of bargain requests only, remember this and make sure to negotiate as much as possible. If you do this negotiation properly, you will be able to save a good amount of money. If you are buying the house on upper floors like 8^th or 9^th, then it is another better chance for you to negotiate even more.

You can restructure the Payment

Usually, the builders will introduce buyers to pre-planned payment schedules. Remember that there is always room for restricting things. Don't just pay the amount to builder until you see the development of the real project. You are the potential owner of the house, and you have complete right to contact the bank or any other finance institution that is offering home loan for the builder and inform them about the status of the house. If the loan is pre-approved, you can inform about the situation of the house to the bank and ask them to halt the next installment payment until the house is constructed to match the requirement of the bank.

Contact the Lender and Wait for Appreciation on Property Value

Although the builder has provided you with all the necessary information and documentation, it is your responsibility as an owner to contact the lender to check about the loan and all the other things.

It is important for you to wait for some time to get the appreciation on property value. You might have entered into this deal thinking that you will get good value of appreciation, but the value may not meet your expectations. So do not hesitate and wait for the increase in appreciation value.