With the increasing effect of the financial markets on the home-loans industry, banks offering home loans are now tightening the rules. Banks are now very keen and focusing more on the eligibility criteria, previous tracks records, and the legality and technical verifications of the property (home). Keep in view of the aforementioned facts, a home loan seeker must give a careful and clear look at the property before entering into an agreement to acquire a property and proceeding for a home loan.
With the changing strategies, and new rules and regulation coming into process, it has become very important for a home loan seeker to be fully aware of all the aspects pertaining a property that he intends to buy; failing to do this, he may end up in getting his application rejected.
One of the areas that a home loan seeker must look into is the technical aspects of a house - horizontal and vertical deviations. Banks have now stopped giving funds to houses with such technical deviations.
Banks are now giving considerations for the old properties that had gone for Building regularization.
For e.g.:
Horizontal Deviation:
Sanctioned area in each floor as per plan: 1600 Sft
Constructed area: 2400 Sft
In the above case the property will have a Horizontal deviation of 50% for which bank will not give any loan. The same is also applicable to independent houses with such deviations.
Vertical deviation:
Consider a building with ground and two 2 upper floors; if the sanctioned height for the building as per the plans is only 30 ft, and the constructed (existing height) is 40Ft, then the building is said to have a vertical deviation of about 33.33%. The same is also applicable to independent houses.
In the above case, builder might have constructed an unauthorized cellar or an unauthorized floor i.e Ground or a 3rd floor.
In both the cases mentioned above, banks will certainly reject the loan application as they have the technical deviations.
To get details of the constructed area and the height of a building, one may refer to the plan copy. Using this you can know about the sanctioned area and the exact constructed area. Also you can know about the height of the building - the sanctioned one and the constructed one. This helps you in finding out if any unauthorized cellar or any unauthorized floors above the building which are not mentioned in the plan are constructed.