Buying a house is a well-thought-out decision and requires years of planning. It’s a great investment for the future and comes with a low risk factor; not to forget, it is a symbol of stability. When you decide to buy a house, another factor that is to be considered is getting a home loan, which turns out to be the most crucial. You do all your research because you can’t really afford to make a mistake here! In the process, you reach out to several companies and compare the interest rates offered by several financial institutions, check if all your documents are in place, and various other factors.
While this process is tedious, research suggests that getting a home loan from a reputed builder is more feasible. Sometimes, your builder might suggest a certain finance firm or bank, since they have a tie-up with them. It might raise suspicion among many buyers, but there’s nothing to worry about. Of course, you need to be cautious when getting a home loan, but that applies to every possible case; it isn’t really about a particular instance.
The reason builders tie up with financial institutions is to instil confidence in the buyers and secondly, all finance houses do not approve all builders, so this saves up on a lot of time and effort. Though the builder benefits in this case, but so does the buyer. Otherwise, imagine running around from firm to firm to get your home loan approved? Of course, you are going to waste a lot of time and this means, your dream of getting that home keeps getting delayed too!
What happens is that when a buyer spends a considerable amount of time in getting a lender approved, the builder too loses money in paying interest on the capital required for the project. The interest is certainly not a small amount; they need to disburse their own loan at the earliest to the buyers and with a tie-up, these issues get erased. The bank has already examined the property, so this helps a lot.
Additionally, if a certified bank approves the builder, then the buyer’s money is in safe hands. Just make sure you watch out for any non-banking finance companies; that certainly could raise a red flag. Most banks tend to sanction loans pretty quick and when it’s a tie-up with a reputed builder, the process is much easier. It speeds up the time of loan disbursal and benefits the bank too in terms of their reputation.
All in all, a tie-up helps to ease the home loan process and proves to be beneficial to all parties!