What are the formalities for releasing the housing loan ?
A. After making an application for housing loan along with all required documents and processing fee, the housing finance company (HFC) will issue a sanction letter. The HFC may request for further documents which will have to be provided. Thereafter documentation like loan agreements, etc., need to be executed. HFC may also request for pre-EMI and EMI cheques as per their policy. On completing these formalities the HFC sends a copy of the cheque for the first trench of the housing loan to the builder. On receiving a copy of the cheque the builder executes a sale deed and agreement of construction in favour of the purchaser. The originals are deposited with the HFC.
Related Questions
- Can I use the Special Account for capital repayment of my housing loan? What about progress payments for my private property which is still under construction?
- Can my wife and I avail tax benefits if we have taken a housing loan jointly for a single housing unit?
- Why choose an FHA (Federal Housing Administration) insured loan?
