There is no doubt in saying that, everyone today wants to buy their own house and call it their own. However buying a house is not easy. There are a lot of procedures involved in buying your cream house and every time you think you are closer to your goal, the goal just runs away from you. Let’s say if you have made up your mind to buy a Property, you start with the locality, the project developer, is the property ready to move in or under construction, available discounts, government subsidies, loan options in the market and the government proceedings.

Once you get into this tornado of house buying procedure, you will be stuck thinking what have I got myself into and will I be victorious after the storm settles. Do not worry, we are here to help. The very first thing which you will be considering while making a house purchase is, how much money you have? Is it enough? Will you be considering taking a loan and what is the home loan interest rate?  Is the property in construction state or ready to move? How would it affect my chances of getting and home and what their terms?

Today we will give you a brief idea on loan criteria for under construction and ready to move property. First of all let us understand what are the pros and cons of under construction and ready possession property,

Under Construction vs. Ready to Move property

Under construction

Pros

You can make your choice when you approach the developer when the project is undergoing construction work, you get a lot of options to choose from like, your desired floor, available space (Sq.ft) options and in some cases you can also decide on what fittings you prefer.

Scope of price increase in future as we all know, the ongoing construction property is always cheaper than a ready construction one. Once you have purchased the property while it is in ongoing construction stage, the prices are bound to increase when the property is ready.

You can be the property owner for a fraction of amount let’s say you book a property ongoing construction, you don’t have to pay the whole property amount at one shot. You can make regular installment payments to the developer according to slabs. In theory, you become a property owner for a very little amount.

 Cons

Project delay once you have bought the property, there might be delay in possession. This usually happens in Indian property market. This is the reason; it is suggested to make the payments according to slabs.

The property can sometime be compromised sometimes you don’t get what you see while you are making the purchase. Due to budget cuts, the developer might not give you things which were promised when the property was bought.

Ready to Move Property

Pros

You pay for what you see buying a ready possession property is the best, you pay for what is displayed and there are no hidden agendas or surprises for the future.

You can immediately move in for a lot of people, this would be like buying their first house. By purchasing a ready position property, gives you relief on paying rent every month.

Cons

A lot of money needs to be shelled out initially you will need to make all the payments in one shot like down payment, registration, loan, etc. Before applying for a loan, do check your cibil report for unwanted surprises later.

Inflated price you pay premium amount for what you could have saved purchasing the property in under construction state.

Loan criteria

When you apply for a loan when the property is under construction, you only pay EMIs for what the bank has disbursed to the developer. The developer borrows your loan amount from the bank as per the construction speed i.e. according to the slabs. The loan process for under construction property is smoother than of a ready to move in.

When it comes to ready possession properties, you will avail full loan amount, which will be credited to the developer and you will start making the EMIs from 1^st month of possession.

Buying a dream house is very challenging and a little bit of research on the same won’t hurt. This will help you save a lot of money, time and efforts in the future.

The post Home Loan for Under Construction vs Ready to Move property appeared first on Credit Sudhaar Blog.