Buying a house is one of the crucial decisions, one takes in life. While doing so, the home aspirant will realise that a lot depends on the trust factor that is to be taken into account. As the need for a trustworthy builder is of paramount importance, it must be known that there are many factors which govern this need. Factors such as RERA approval, title clearance for the land acquired by the project and the credibility of the builder are some of the vital areas that need to be looked into before booking a home. When you plan to buy a home with the aid of a home loan, it is also important that the housing project is approved by the lending Bank as, the aforesaid factors are strictly taken into account at the time of approval. It is advisable to conduct a thorough study to see how many Banks have approved the project that you are considering. Also check whether major, reputed Banks and Non-Banking Financial Companies (NBFCs) have approved the project. This becomes important, once you set your priorities and decide the area of the house that you wish to buy, the locality of the project, the amenities provided by the builder etc., that together lead to the question of affordability which, a home loan can comfortably answer.
There is also the reverse route you may take to buy a home through a housing loan. You can pick the Bank of your choice and once your home loan eligibility criteria is fulfilled, you can consider a builder approved by the Bank provided his profile fits within the parameters of your priorities and requirements. By doing so, you have ensured the credibility of the builder and your eligibility for the loan.
Most developers have their projects pre-approved by several Banks based on the following criteria;
- Banks check the approval of the Government for the land acquired by the developer
- Bank orders property title search, where a valuer submits the report that the acquired land is free from all charges
- Environment clearance from the Union Ministry of Environment and forests is checked
- The acquired land should not be in litigation in the court.
Buying your dream home may not be a child’s play. But when you proceed with cautious steps especially by ascertaining the credibility factor of the builder, you can be rest assured of a worry-free decision to fulfil your aspiration to own a home.