Most of us belongs to a Middle class family, for whom buying a house is a big dream to fulfill and considered as a life time achievements, we head to different builders and search for the best deal for us.
we try to get a good house with a perfect location and top of that reasonable price, but why do we forget to do ask for house papers or approved maps, from the builder.
The most common reason is " we don't know what are the papers which are required to examine" other who know it get in to the trap of few confidence generating words of builders,
The most common tool for gathering the confidence is we will provide you loan, and bank will only provide you loan when project is fully authentic.
yes this is really true , Bank will only provide you loan when project is approved, but wait are they approving your loan or JustPre Approving it,
The most common practice in the banking sector is pre - approving of home loans , in this process your Home loan will be Pre - Approved by the bank, which means they are ready to provide you loan ( just ready to provide, but not disbursing the money to you ) and this process only require your credibility to take home loan, if your loan is getting pre approved by bank than always remember its your worthiness, there is not a single contribution of builder in pre approval of your loan,
Now why this pre approval is done, this done when builder has not submitted the property paper to bank , but has a tie up with them , that they will provide them paper latter on.
so that to stop their customers from running away in lack availabilty of home loan, also bank is getting benefit of new cutomers.
The money will only be disbursed to you when the builder will provide all the papers to the bank,
so again here Bank is not a guareenty for the Authenticity of builder.
