Hi, 1. Do you borrow from a bank exactly how much the home is worth or you can see a home of 200000 and borrow 250000 2. When you decide on a home, does the bank give you the money to pay the sellers or they pay them directly on your behalf 3. If the money you borrow happen to be higher than the home value, what happens to the remaining I guess the question is, how does home loan work?
if the seller is asking more for the house than what the lender thinks its worth they won't give you the loan. the lender you are going to use will appraise the house and if the price you are paying for the house is the same or less than the appraisal they will loan you that amount. if their asking more for the house than it appraises your not going to get a loan. your not going to borrow more money than what the value of the home is. if the asking price is 200,000 and it appraises for that, that's how much you will get, not any more. you won't see any of the money, your lender will pay directly to the title holder of the house.
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Hi,
ReplyDeleteI had taken a loan from ICICI bank to buy a shop in a mall. My statement says I have taken a Home Loan, but they say it is not a home loan. Now, the issue is that the shop is closed for past 4 years. I am paying the EMIs from my savings. Now, the EMI amount has increased as rate of interest which initially was 12.25% has increased to 15.5%. I am unable to pay the EMI. If I do so, I will have to keep paying the EMIs till 2051. What shall I do? The mall is not working so I am unable to sell it also. Please help.