Should i take home loan from a bank the builder is suggesting?
I am planning to buy a flat on bank loan. I’ve checked with various banks about my eligibility and it’s fine.Builder in whose building i’ll buy flat, is insisting that i take loan from a particular bank which has already approved his project. He says it will cut hassles for him and loan will get processed faster. Do you think it’s fine to go with the bank builder is suggesting? Or should i go with different bank as it will again check all the legal docs of building?
If a project is approved by a Bank, then there will be no further legal check, thus reducing the process time. So it is better to go with the Bank where the project is already approved if there is no difference in interest rates.
No.sometimes when u default on ur loan,the bank sells the property back to the builder for a fraction of what it’s worth once they collect what u owe them.
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You are the ultimate buyer in this project so it’s ultimately up to you. Personally something like a bank loan though should be something you have full control over who you do it with. I know some builders might have strong suggestions but unless they have better terms/rates in which YOU could benefit from, there should be no other for you to consider them unless you chose to. My guess is that the builder may be getting an additional kickback for any of his buyers he sends to his own bank but maybe I’m wrong…who knows? Regardless, it should be your total decision and not his. If he refuses to let you use another bank consider that a warning sign that there may be other issues you should be worrying about and don’t do business with him.
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life 101
If a project is approved by a Bank, then there will be no further legal check, thus reducing the process time. So it is better to go with the Bank where the project is already approved if there is no difference in interest rates.
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Well, there are two sides of the coin here and you have to figure out which side do you prefer. Do you want a process that is easy, short on time and hassle free? Then opt for the buyer’s bank. Do you want mental peace and satisfaction over your own bank choice, then start with a new bank. Either way, do not be submissive to the demands of a buyer. You are the one giving out money, so you should be able to decide for yourself.
References :
http://www.blackrockestates.net/