| How does a Bank calculate the value of the property chosen for Home Loan? |
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| Written by Site Administrator |
| Tuesday, 27 October 2009 16:26 |
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A bank or a financial institution will first screen the submitted documentation to make sure that the property is eligible for a loan. They will check to see that the property has a clear title, clear history, necessary approvals from the municipal authority, that the land is not an assigned land, that there are no legal complications and so on. Once this is done, a property evaluator from the Bank will visit the site and evaluate the value of the property, its existing market value, its age, its quality of construction, etc and then fixes a median price between the government and the market values of the property. A depreciation amount is deducted from this amount if the property is old or second hand. Comments (0) |