Buying a home can be the most important investment for anyone. There are number of factors to consider while investing in residential property both as the first time buyer as well as the experienced.
The article highlights the importance of legwork involved in any home loan deal, a popular source to finance home sweet home.
The Importance of Paper Work
Dragging the closure of deals unnecessarily can bring about a severe headache. All of your significant paper work related to closure activities including the loan papers, title insurance, settlement statement, documents of owner’s coverage, and other contact papers must be competed legally before closure. Ensure to complete the entire documentation under local and state laws for the smooth transfer of property. A little leniency can lead to financial penalties and, worst of all, forfeiture of your rights to that property.
Documents Required For Buying a Home
Title Insurance: The deed offers protection against the frauds in the title works of the property. A number of problems may arise such as errors in public records, undisclosed liens, and encumbrances, easements, forged deeds, and undisclosed heirs to the property. Pitfalls like the mentioned ones can affect the future value of your property. You must always have the expert’s advice on your side to avoid nasty surprises later. They will inspect the title insurance properly. You can also get title insurance directly from a title agent.
Homeowner’s Insurance Policy: The lender wants the buyer to have a valid homeowner insurance policy in case he does not make payments in cash while buying the property. It ensures protection of both parties’ investment. However, the policy must be secured before the date of deal closure.
Allotment Letter: This is a document that contains all necessary details regarding the time schedule for the payments to be made, the price agreed upon, the construction, the house plan, liabilities of builders and delivery dead lines. You have to get your allotment letter from the concerned builder.
Lender’s coverage: Nearly all the lenders ask the buyers to provide title insurance for the loan they provide. Since, the amount of mortgage decreases during the loan tenure, the amount will also decrease.
Payment Challan: It is most important when you buy your home directly from a builder. It serves as an evidence of the payment that you have deposit into the seller’s account.
Original sale deed: In case, you are looking forward to buy the property from private builder, ensure to have the original sale deed signed by the first buyer and the builder.
Owner’s coverage: This is the document that remains at a particular level throughout the ownership period and is issued according to the amount of the actual cost price of the house.
Completion Certificate: Its significance lies in ensuring the buyer that his/her newly acquired property adheres to the requirements of the municipality or the state laws. The seller must provide completion certificate to the buyer.
Guiding Through the Entire Legwork
Always consult your lawyer or a competent property consultant when signing the papers. Your lawyer will be important to the best handling of documents required in the process of property transfer. Moreover, he can guide you about your responsibilities and legal rights.
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