Past few years have witnessed a paradigm shift in the scenario for home loan seekers. However, things for the consumers were fairly good till mid-2004. Property prices have been steady and the interest rates were at historic lows.

Undoubtedly, the picture has much changed now. Real estate in India is going through its own boom, with property prices going higher and higher as there is no tomorrow. Also, there is no sign that this rise in underlying property prices is going to slow down soon. This has widened the gap between have and have not for a home loan consumer.

Though, there has been a great progress in the financial status of different income groups but there are many other hassles along the way to add to the woes of an interested home buyer.

With an increase in loan interest rates, it has been noticed that a consumer gives away a major portion of his increased income as the down payment and later as EMI. This is a story with every next typical consumer in a metropolitan city. No wonder that the dream for owning a home is on the verge of turning into a mirage for most middle class.

So what are the options left with a prospective home loan consumer?

• If you are planning to purchase a home for the purpose of your own residence, then don't make your search a wild goose chase by trying and wasting time in the market.


• If your dream house requires you to hunt a treasure to buy it, you may consider a smaller property in the same area.


• But, if you are deciding to buy a house with the intention of selling it for quick profits, then never fasten the process. Wait for the overheated property market to cool. Meanwhile, work out your budget and advantages before treating the property as an investment.

Let's view the top four problems faced by home loan consumers during the pre-disbursement process as well as troubleshooting tips:

Problem I: Most times, the desired home loan amount is not available or if available, then getting a fixed rate of interest is just like striving for impossible. Moreover, there are a few financial institutions that provide the home loan consumers with a promising interest rate.

- Get a promise that if you don't receive the home loan amount offered you can press for a refund of your processing fee. Don't rely on words but take it in writing or by mail.

Problem II: Generally, there is no guarantee that you will get your processing fee back if the loan is not sanctioned or if the loan is sanctioned then the individual does not want it.

-The situation seems a little complex unless promised in writing or in advance.

Problem III: At times, loan amount gets restricted after being sanctioned due to lower valuation of the property by the bank.

- You may ask your lender to get a valuation done before the sanction of the loan so that this does not come as a surprise afterwards. Else, the bank will evaluate it at one figure and you will be purchasing it at another. For that reason, it is always recommend buying a property from a well known builder.

Problem IV: Non availability of title documents and/ or NOCs in the format desired by the bank. Or, problems with any other legal/ title document.

- Most banks go through your legal documents with a discerning eye if they are submitted along with a home loan application form. You are required to check with the concerned builder/ society/ authority about the format of the NOC that plays a critical role in the procedure. If they have a different format, get that cleared from the bank to avoid messy disputes and headaches later.