What Are The Other Costs That Are To Be Incurred Over And Above The Agreement Value?
You will have to pay stamp duty and registration charges. Both, the developer/seller and you, have to be present at the sub-registrar’s office while registering the agreement.

What Is Stamp Duty?
It is few per cent of the market value as assessed by the Stamp Office. The process is as follows. The stamp office affixes the stamp for the said value. The agreement then needs to be registered.

What Is Registration?
The property agreement should be registered with the Sub-registrar of assurances under the provisions of the Indian Registration Act within four months of the date of its execution. In Maharashtra, the registration fees to be paid is generally 2 per cent of the value of the property after the stamp duty is paid.

What Does One Have To Check At The Time Of Taking Possession Of The Flat From The Developer?
Taking possession of the flat would involve ensuring the following:

· Developer should have obtained Occupation Certificate from the Municipal Corporation

· Inspect the flat thoroughly before taking possession

· Ensure that there is a municipal water connection and electric supply.

· Ensure that you fix your own lock on the property and take the old keys from your builder.

What Is Monthly Reducing Loan?
Under this scheme, the principal on which you pay interest reduces every month as you pay your EMI.

What Is Annual Reducing Loan?
Under this scheme, the principal reduces only at the end of the year. Hence the consumer continues to pay interest on a portion of the principal which he/she has actually paid back to the lender.

In effect, the consumer has to pay more under the Annual Reducing Loan as compared to a Monthly Reducing Loan.

What Is Fixed Rate Of Interest?
A fixed rate of interest means that the rate of interest on the loan amount remains unchanged for the entire duration of the loan agreement, irrespective of the change in the interest rates in the economy. Hence if the consumer opts for a fixed rate of interest he will not be able to benefit if the interest rates are falling.

What Is Floating Rate?

A floating rate of interest is one that fluctuates according to the market lending rate. Hence, in an environment were the interest rates are rising, your budgeted expenditure on the house loan also goes up.

What Are The Other Incidental Costs Associated With A Housing Loan?
The following are some of the extra costs associated with a housing loan:

· Interest Tax: This is the tax payable on the interest paid on a home loan and not on the principal. This tax is sometimes included in the interest rate of the loan, or may be charged separately as interest tax.

· Processing Charge: This is a fee payable to the lender on applying for a loan. It is either a fixed amount or a percentage of the loan amount. The loan amount received by you could be net of this fee.

· Pre-payment Penalties: When a consumer opts to pre-pay his loan, housing finance companies charge a pre-payment fee of between 1% and 2%. The reason for this is that the lender has to adjust his cash flows and match his asset-liability structure.

· Commitment Fees: To prevent their resources from being wasted, housing finance companies charge a commitment fee from each of their clients. This is done in order to cover the expenses incurred in the process of sanctioning the loan.

· Registration of mortgage deed.

What Is Time Taken For Loan Approval?
Between two and three weeks.

What Is The Time Taken For Loan Disbursement?
After a complete check of all the relevant documents and other formalities, including the payment of margin money on the loan, is done, the loans are disbursed in maximum one or two weeks.

What Are General Documents Required?
Proof of Identity
Proof of Residence
Proof of Income