Useful Legal tips for Home Loan takers

The verification process of home loans involves legal verification of home ownership. Banks have a set protocol, to be followed when they scrutinize the viability of providing the home loan. A panel of advocates is formed who forward the submitted drafts to the sub-registrar office for verification. If the information is incomplete the home loan seeker is asked to substantiate the documents. An illegally owned home or insufficient legal documentation would lead to disapproval of the application. It is prudent to check the legal aspects of the home and organize legal documents before applying for home loans. In some cases property owners provide the legal documentation for bank verification. In other cases, home loan seekers have to compile the documentation on their own. Either way, legal documentation is of the utmost importance in the home loan application file.

Nationality Status

If you are a Native American, enlisted in the government books, certain benefits are applicable to you. Reserved land and lower rates of interest are provided. Checking the veracity of your claims on Native American Status before applying for the loan, would increase the chance of loan approval. If you are a Resident American, general rules and legality issues are associated. Most of the time, normal scrutiny processes would suffice. But still a last check would be better. If you are a recent immigrant turned resident American, chances are that you will have to prove the truth of your claims by providing appropriate documentation. This happens because banks and mortgage lenders have incomplete database on such people, because they usually escape the credit track record scanner. If you are an immigrant, most of the banks would refuse a loan, because of a regulation that social security number is necessary for the mortgage loan. But several banks agree to lend on the basis of ITIN.

State Laws

The federal structure of our country means different states would have their own land laws. It is imperative to check the state laws, especially inheritance laws, home gift laws, immigrant land ownership laws; among others. Some states have stricter laws, while others are liberal. This difference can become the reason for loan disapproval or approval in various states.

Tips for Legal Documentation

• It is worthwhile to take professional help, in case of doubts over legal issues. This investment would be one time and benefits for the whole life.
• Apply to the concerned sub-registrar office for Encumbrance Certificate which has al the sale details for the last 15 years.
• Apply for the registered documents of the previous owners.
• Find out from the registered documents, that the property is free of all litigations.
• Talk to the previous owners, and ask them to document their legal claims
• Approval certificate from planning authorities of the city or town.
• Correct estimation of the appraised worth using government approved evaluators
• Verify the claimed floor area and document it.
• Claim the original documents from the previous owner or vendor, after the registry
• Check the legal documents for spelling mistakes and obtain affidavit for the same against your ID proof.

These tips would certainly help in building the legal documentation file. A professional help from a lawyer would be better. Since it’s not everyday we buy a home, we should check all the legal documents before we go for the home loan.