If you are considering buying a property, there are many things you need to consider, such as budget and location, availability of home loans, and home loan interest rates. However, one thing that most home buyers overlook is if the real estate project they are investing in is a bank approved property or not.
What is a bank approved property?
Bank approved property refers to real estate properties that have been thoroughly vetted by banks and financial institutions. These properties have clear titles, and the authorities are cognizant of the ownership. When a bank gives its approval to a property, in essence, it adds to the credibility of the property. This, in turn, gives home buyers confidence in the developers’ vision of making the property a viable purchase.
How does the bank approve a property?
The bank determines if the project developer has the proper paperwork in place, assuring potential homeowners that there are no legal, technical or financial problems. As a home buyer, you can even choose to take a home loan from the same bank, reducing your burden of inspecting it yourself. It is important to note that the bank is not responsible for any delay in the construction of the approved property.
What is the procedure the bank follows to approve a property?
When inspecting a property to approve, a bank follows a strategic and thorough process. The first thing that the bank assesses is whether the land on which the property is being constructed is approved by the government. This is done by checking the property rights and ascertaining a report that mentions the land is free from any and all legal charges. Next, the bank will look for environmental clearance from the Union Ministry of Environment and Forest.
Once the bank has greenlit its approval for the property, it assigns an Approved Project Financial (APF) number to the developer in charge. This number signifies that the property has been accredited with all the necessary approvals, easing any worries you may have.
What are the benefits of a bank approved property?
There are many benefits of preferring a bank approved property:
- A bank approved property allows you to get a quicker approval for a home loan as the bank has already ascertained the project in respect to legal and technical factors.
- With the bank’s approval, you will have the confidence to buy a property as you can trust the developers to keep to their promise of providing the amenities listed in the agreement and that the developer will stick to timelines. The vote of confidence will give you the peace of mind to invest in a certain property.
Now that you understand the importance of looking for bank approved properties, the next step is to know how to find them. The easiest way of finding a bank approved property is by visiting a bank’s website. They have a list of the approved properties for your perusal. Once you have the list, you can compare the listings, calculate the home loan interest rate with a home loan EMI calculator and then get in touch with the developers to further investigate.
Therefore, when looking to invest in a property, it is imperative that you do your homework. A bank approved property helps you build trust in the developers. This makes it easier for you to find a home and a home loan that works for you, enabling you to make an educated decision.
