NRIs on a busy schedule can find the house of their choice and also finish the loan process quickly, provided they partner with a good housing finance company.
NRIs visit India for short spells of time. Often, their holiday is all about visiting relatives and going on short trips with the family. But some fly down to India with the intention of buying property. Though a long-drawn process, smart planning can help NRIs find a house and even finish applying for a loan.
These are the steps to follow when buying a house in a short span of time:
* Ask a broker to line up potential houses.Ask a reputed real estate broker to line up houses for you to visit. The more houses you view, the more choice you will have in terms of location, amenities, price, flat size, etc. By the law of averages, you are bound to find a house you like from amongst the many you visit. Or you can check up online property listings and contact sellers directly.When looking at ready possession homes in new projects, it is better to look for homes with pre-approved loans to save time.
* Initiate a home loan request. Meanwhile, you can approach a housing finance company for a home loan. Since you are strapped for time, you can apply for a pre-approved home loan – but do continue looking for houses while the housing finance company processes your documents. Check your loan eligibility by using an NRI home loan eligibility calculator. Once the NRI home loan eligibility calculator lets you know how much loan amount you can expect, it is time to research the latest home loan rates for NRIs.
* Discuss the price and payment terms. Once you find the house you want to buy, it is time to negotiate on the price. Most sellers tend to overstate their price when selling to NRIs, so do your research about the current market rates before entering into an agreement. Once the price is agreed upon, give the seller a booking amount and decide the date for handing over the first instalment on the house (normally between 20% to 30% of the house’s cost). You must also set timelines for paying stamp duty and registration on the house.
* Take a loan with favourable terms. Not only must you be cognisant of the latest home loan rates, you must also be confident that you have chosen a good housing finance company on your journey to buy a home. Apart from the actual terms of the loan itself, look for faster evaluation and disbursal processes, nominal processing charges, and flexible repayment terms. The option to transfer the loan to another lender at a later date is a big plus.
* Sign the paperwork and get loan disbursal. Now that your sale agreement is registered, you can submit it to the housing finance company for consideration. Once the loan request is formally approved, the housing finance company will ask you for the date of disbursal. You can give a date mutually agreed upon by you and the seller, and when you hand over the loan cheque, you should take the house keys. At this stage, a copy of the sale agreement must be submitted to the building society/developer as well.
The home loan rates have been reduced in recent months, and may reduce in the near future. Keep tabs on the latest home loan rates so that you can request a revision on interest and EMI at a later date.