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home loan sanction letter


I am selling my apartment. Buyer is taking 90% home loan from finance company. I submitted all house documents for legal verification / technical check to finance company. But when they gave final sanction letter to buyer, it says "Property Not Identified", no owners name or property address and loan subject to internal assessments / verifications / legal verifications and technical checks. Is this normal ? When they have checked all docs why are they saying "Property Not Identified", shouldn't they do all legal / technical / verifications before issuing sanction letter ? Is it safe for seller to register "Agreement to Sale" based on this sanction letter ? Should I demand amendments to letter to reflect property details and that all legal / technical checks are done ?  Can the finance company deny loan disbursement after we register "Agreement to Sale" ? If yes then how do we get our apartment back ?

 

 
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LAWYER

You can make a conditional sale agreement,  and condition that the sale agreement shall stand cancelled if the buyer failed to pay the full amount by any specific date. You should not hand over any posseion until the payment is made in full and final, youmust mention that too; if the financial company is fair encough they would proceed to register the agreement.

 
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The moment you apply for a home loan, the lender will require you to complete some paperwork and expect you to provide proofs concerning your ID, financials, and property. Considering housing loans are of a substantial amount, it is essential everything is in place between you and your lender. Before you handed the final loan agreement, you are provided a sanction letter. 
 
It states the banks have approved of the loan. Here is what it means and why sanction letter is vital for home loan India – 
 
1) Eligibility: Lenders offer sanction letters once they have processed your application and determined your eligibility for the house loans. They may provide the exact terms based on your eligibility, income, credit history, outstanding debts, and your age. Some lenders also consider the current value of the property as well as the current appreciation rate. Hence, you must thoroughly read the sanction letter. 
 
2) Standard contents: The sanction letter includes details such as home loan agreement, total loan amount, the interest rates applicable along with the calculated base rate, floating or fixed home loans, and the overall tenure. Depending on the terms mentioned in the sanction letter, you can use the home loan EMI calculator for the potential EMIs. Based on these details, you can decide whether to take the credit under the stated terms, negotiate with the lender, or shop for a better deal. The sanction letter also includes individual terms which could vary between lenders. 
 
3) Different than loan agreement: The sanction letter does not state the legal approval of the credit. Applicants are subject to background verification and need to provide additional papers before the final agreement is in place. Sanction letters are also valid for specific period, which is often six months. Once the stated period exhausts, you cannot accept the credit offer depending on the conditions mentioned in the sanction letter.
 
Reply   
 

The moment you apply for a home loan, the lender will require you to complete some paperwork and expect you to provide proofs concerning your ID, financials, and property. Considering housing loans are of a substantial amount, it is essential everything is in place between you and your lender. Before you handed the final loan agreement, you are provided a sanction letter. 
 
It states the banks have approved of the loan. Here is what it means and why sanction letter is vital for home loan India – 
 
1) Eligibility: Lenders offer sanction letters once they have processed your application and determined your eligibility for the house loans. They may provide the exact terms based on your eligibility, income, credit history, outstanding debts, and your age. Some lenders also consider the current value of the property as well as the current appreciation rate. Hence, you must thoroughly read the sanction letter. 
 
2) Standard contents: The sanction letter includes details such as home loan agreement, total loan amount, the interest rates applicable along with the calculated base rate, floating or fixed home loans, and the overall tenure. Depending on the terms mentioned in the sanction letter, you can use the home loan EMI calculator for the potential EMIs. Based on these details, you can decide whether to take the credit under the stated terms, negotiate with the lender, or shop for a better deal. The sanction letter also includes individual terms which could vary between lenders. 
 
3) Different than loan agreement: The sanction letter does not state the legal approval of the credit. Applicants are subject to background verification and need to provide additional papers before the final agreement is in place. Sanction letters are also valid for specific period, which is often six months. Once the stated period exhausts, you cannot accept the credit offer depending on the conditions mentioned in the sanction letter.
 
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