How to buy residential project safely by the help of bank?

Q: How to check quality or aspect of any residential property by bank???

Javed,

7th November 2014

Other

investment advice

under construction property

approved plan

buying property advice

ready to move property

litigation free land

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Replies (1)

Hi Javed,

Almost every one are going for home loan while buying any kind of residential property. So bank will not see the customer face or property and give you loan. Definitely before approving any loan request, bank does a check – on the property, the credential of the builder. This is done to ensure that the market value of the collateral does not reduce.

Gurmeet,

7th November 2014

Comment

Hi Javed,

Yes Gurmeet, you are right. For every loan you take, you have to give something as a security and in this case, it is the home that you are going to buy, which plays the role of a collateral security in exchange for a home loan. So suppose you are taking loan for under- construction project. Then bank will check the quality of the project or aspect of the project.

Harmeet Kaur,

7th November 2014

@ Javed,

So first bank is checking the stages of construction as its mentioned in the payment notice given by the builder. Layout plans, area of the property is within permission granted by the approval authorities & Construction quality. Bank checks if the builder / developer has the required certificates to start construction. Property valuation based on the other deal in the surrounding areas.
For under construction project...

Kaushik Bardia,

7th November 2014

Hi,

According to me, suppose you are taking loan for ready to move apartment. Then bank will check property age, maintenance of the property, surrounding area, construction quality & Check if the developer has received the mandatory certificates for handing over the property for possession. Apart from that, another technical check is done to understand the progress of construction.

Kunal,

7th November 2014