People generally get hold of loans, either for the acquisition of a house that is ready-to-move-in for reserving an under-construction property. Nevertheless, individuals may also avail of mortgage loans to obtain their residence constructed – either by themselves, or by utilizing a contractor to create the home – for a plot that they possess. Such loans are generally referred to as ‘construction loans’. The entire process of approval and disbursement of the construction loan, is different from compared to a regular housing loan.
Papers become connected with application
As well as the regular ‘know your customer’ (KYC) and earnings papers, to avail of a mortgage for constructing a house on a block of land owned you will have to provide the prospective lender with all the relevant documents that establish your title and ownership of the plot of the land by you. The block of land may either be a freehold plot, or it may be allotted by any development authority, like CIDCO, DDA, etc. You may avail of that loan on a leasehold land, where in fact the rent is for a fairly any period of of the time. You shall also need to submit a no- encumbrance certificate pertaining towards the home.
Besides the documents associated with plot, you’re going to have to submit the master plan and design regarding the proposed house, duly authorized by the neighborhood municipal authority or gram panchayat. Read more