Are you planning to buy a property then be cautious about one thing and that is to check if the seller is still re-paying the home loan. Well, this is a bit surprising as the seller is letting its property for sale even before clearing the loan amount. However, you simply can’t ignore this point and say this is not my issue as the outstanding amount of the seller is likely to create worries for you. So, here are the things to remember while buying a residential property from the seller who is still paying the home loan.
- Longer Purchase Procedure
Usually, the entire process to buy a property gets over in a short span of time. But, in this, the procedure takes a bit long time as the financial lender such as a bank or any other institution has the original papers in its custody. Thus, the seller first has to prepay the entire home loan in order to release the papers and then the bank particularly takes a minimum of 10 days to release no-dues certificates.
- Ask for No-Dues Certificate
Here the seller can only show you the copies of original documents related to the property. Thus, you must ask if the home loan on the property is cleared or not. Also, ask for the No-due certificate [original] issued by the bank. Apart from this, check if there are any unpaid dues related to the property like the power and water bill, etc.
- Availing loan from the same Lender
Getting a home loan sanction is a huge relief and thus you must opt for the same lender that of the seller in this case. The main reason behind this decision is that the bank already knows about the property and thus they just need to check your income details. So, the other things like property visit and checks are not required. Also, you being the reference of its old customer also work in the favour.
- Rate of Home Loan
The entire home buying process needs money and thus you must check for the interest rate on the home loan. In case another bank offers cheaper rate of interest then you are suggested to opt for that particular bank and not the same lender. At last saving money while owning a property is a clever thing to do.
Keep these four–points in mind at the time of buying a home from a re-seller. As even a single thing taken for granted is enough to land you in trouble.