Need guidance to get a plot and construction loan
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I am in discussion with a plot owner in uttarakhand.
He is a preowner and purchased this plot around 2012 from a private builder/agent.
It's a small colony with 100-150 plots where 20% are built and the rest are sold and not built.
I don't have sufficient funds to buy a plot in cash and also want to make sure there is nothing illegal in the plot.
This is my first loan and house so I don't know much about what to take care of while purchasing.
I have heard banks do the thorough check for the construction site and sanction then. This will make sure the plot is fine and safe.
I want to ask:
If I want to purchase in cash, Is there any secure way? I will build the house later on.
Or a loan is suggestive to build and I will add some cash to purchase the plot?
If loan is the choice, I have a preapproved offer on Icici for home loan up to 20L. Is it legit? Does it apply to plot+construction?
I have also heard that Icici will ask for a registry but I didn't purchase it yet. My CIBIL is 790+ to add up.
Which bank to choose and how to apply with lowest rate and free pre closure.
It's a semi-residential area.
Thanks for your time
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If you are not familiar with the area/locality and do not have any influential contacts, then I will suggest you avoid this deal.
The checks I do
1. If it is farmland converted to plot check conversion charges paid
2. The survey number of farm lands when they pooled and plot number mentioned under all survey numbers
3. Any property vacant land tax pending.
4. Visit the nearest revenue office find out if tax paid for the open plot
5. Visit the STO or online take encumbrance certificate of last 40 years
6. Check if all the ppl above 18 and who are legal heirs signed for conversion or make sure there are no loans
7. Take local register valuator and get value certificate.
8. Take at least 1L loan from hdfc or sbi and wait for their legal verification and take copy of it and verify with your above findings
.
It is not necessary that you have to avail a home loan to check
the genuinity of the land.The plot may be pre-approved by many
banks ,in that case banks would have already carried out the checks.
It is always better to check the titles by neutral property attorneys by
yourself.
Bank’s only interest will be to ensure proper resale value for the property.
Do check that the land is permitted to have construction on it.
(Different states have different laws wherein land can be classified as
dry land , wet land etc)
If the land is purchased on loan you may have to avail housing loan
from the same bank or you may have to settle the existing loan first.
I don't have the recent updates on availing the best possible loan
.
But I got your point that banks will do certain checks and we can also perform the same just by an attorney.
Bahut mubarak ho dost.kismat valo ko hi milta apna ghar.