Home Building Loans

Benefits & checkpoints of booking an under-construction flat

A brand new home has its own charm, especially when its price is yet to hit the roof. Many individuals take the risk of booking a flat in an under-construction building mainly for that reason. It not only helps you fulfil the dream of owning a house , but is also cheaper than a read-to-occupy flat. But, reports about builders failing to complete the project on time have made many prospective home buyers anxious about booking a flat in an under-construction project. Many also wonder if they should book a property whose final shape is still not known.

"The biggest advantage of an under-construction flat is a well spread out cash outflow linked to the construction's progress," says Gulam Zia, national director, research & advisory services, Knight Frank India . "You can also get the flat customised to your needs." You can also choose the location of the flat, direction and floor when the builder is about to start the project. Locating them is easy, given the large advertisement campaigns that usually accompany a just-launched project and you need not have to go through the brokers . However, it is always better to ponder over few crucial points before booking a flat in an under-construction project.

It is in your interest to ensure the project is completed on time. The builder can commence construction only when he has intimation of disapproval (IOD) and commencement certificate (CC) for the project. IOD sets out the conditions based on which the building needs to be constructed. It is usually valid for a year and needs re-validation after that from competent authorities. CC is issued by local authorities, and it allows the builder to start the construction. "You should buy an under-construction flat if and only if the builder has a commencement certificate for the floor on which you are booking a flat," says Dhiraj Jain, partner, real estate, SNG & Partners.

"Due diligence on the title is a must," says Jain. "The title - ownership right - should be clear of encumbrances and litigation." The buyer has the right to verify the title documents. There are instances where the buyer gets into an agreement with the developer to buy a flat and then registers it with the competent authorities. If the developer does not have the ownership of the flat, he cannot transfer its ownership to the new buyer by just registering it.

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Loan Expert Gives Construction Loan Advice to New Home Owners ...

San Diego, CA (PRWEB) September 25, 2006

Home owners considering applying for a construction loan will find many useful tips in the new ebook, “15 Things You Should Know Before You Even Think About Applying For A Construction Loan.” Each year millions of Americans decide their dream home is a newly built residence, often constructed just for them. Maneuvering their way through loans, plans, contractors, government requirements, licenses, and paperwork can often become nothing short of a nightmare.

“Armed with a few important tips, prospective home owners can easily find their way through the maze,” says Rick Gomez of NationwideConstructionLoans.com, who has been in the construction loan business for more than 20 years.

Gomez says the first step is to buy the land your home will go on. “Most people search for building plans first. That can be a mistake. Things will move much faster and you’ll get better loan terms if you go about securing your land first along with a pre-approval for the construction loan,” Gomez said.

While most new home owners approach their bank for a loan, Gomez said a loan broker is a better bet. “Going to your bank for a loan is like going to a Ford dealer to buy a car — all your choices are going to be Fords. A broker has access to many different types of loans from different sources and can tailor the loan to your needs,” Gomez said.

These tips and many more are included in Gomez’s e-book, which explains how new construction loans work. The book has been wildly popular with consumers and is available free for download at http://www.nationwideconstructionloans.com.

“Read through my e-book, and I guarantee you’ll know more than the loan officer when you go in to get your loan,” Gomez said.

NationwideConstructionLoans.com is designed to help consumers find the best construction loans, regardless of where they chose to get their loan. The site also teaches brokers and loan officers how to provide their clients with the best construction loans. Additionally, the site features numerous helpful links to other resources. Prospective home owners also have the option of working with NationwideConstructionLoans.com’s sister company 1st Metropolitan Mortgage.