Home The biggest purchase of any person’s life is. This is a huge expense. So most people resort to home loans to buy a house. Home loan is the longest -term loan. Usually banks offer home loans for a period of up to 30 years. However, home loan interest rate is the lowest. If you are going to apply for home loan, keep in mind that banks also take many charges. Let us know which charges these are.
Application fee
This fee is charged for processing your home loan application. Whether you get a loan or not, it is fees. This fee is not repayable. If you submit a loan application in a bank or NBFC and after that your intention changes, then your application fee will be wasted. Therefore, before giving the application, make sure that you have to take a loan from which bank or NBFC. Application fees are charged in advance along with loan application. However, some banks offer a portion of this fee with loan application and facilitate the rest before getting a loan.
Morgan Deed Fee
This fee is charged while choosing a home loan. It is usually in the form of a home loan percentage and it is a large part of the total fee amount to be paid to take the loan. Some institutes waive this charge to make the home loan product more attractive.
Legal fees
Banks or NBFCs usually hire external lawyers to investigate the legal status of the property. The fees that the lawyer charges for this charge financial institutions from their customers. But, if this property has already been legally approved by the institute, then it does not take charge.
Commitment fees
Some banks or NBFC loans are processed and approved in a prescribed time limit, in case of not taking loans in a prescribed time limit. This is a fee that is recovered on the subjected loan. This fee is usually charged as one percent of the difference between the sanction and the distributed amount.
Prepament penalty
Prepayment means that the loan holder deposits the entire or the rest of the loan before the period ends. This causes loss of interest rate to the bank, so bank penalty to compensate this loss to some extent. These charge are different in different banks.
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