Which is the best bank which offers the best with regards to home loan?

Keeping in mind all factors like %ge of interest, service etc which is the best bank for home loan. I have heard that HDFC and SBI are good. Please help!

Which is the best bank which offers the best with regards to home loan?
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8 Replies to “Which is the best bank which offers the best with regards to home loan?”

  1. See if you can join a credit union near you. Some are available online only, so start searching there. A credit union will give you the best interest rate and easier terms. I got mine 1% below the best a mortgage company could offer. I also used their inhouse appraiser and title closing company and the savings were huge, and they will have less in the way of trash fees padding the bill. I probably saved at least $3,000 using their processing and settlement company.
    I bought a house several years ago that had been foreclosed upon, and was forced to use the original bank, not knowing any better. They were HORRIBLE! They continually tried to have 3x’s the annual taxes and insurance in escrow, against the law, but they did it anyway. Were always saying my house was empty when it wasn’t, so the would call the ins. agent who would write a new policy on the house and send a bill to escrow so that would be increased. Then they would take my payment and send it to escrow so I would be late and they could add fees and charges, trying to force me into foreclosure! I sold the house just to get rid of the mortgage company. It was Homeside Lending then, and is WAMU now. Still the same horrible people ripping you off, so be very careful who you get your mortgage from. A credit union will be someone you know and can deal with on a reasonable basis. You are intimately involved with the day to day functions. You can vote off the President if he is not doing his job. With a conventional mortgage company or bank, you will have no control over who processes your mortgage. They don’t have to answer anyone, not even the FEDs, which is why were are in a recession now!

    I have since been in mortgage lending, and it is like any other sales job, except that you will never really know what they are charging you for and what is bogus until after you sign the papers. The whole industry is more evil than an auto dealership, and less regulated, since most people do not know who to contact to find out if they have been ripped off, and none of the government people will help you, because the mortgage companies fill their pockets and campaign chests’.

  2. it makes no difference which bank u choose. all banks are same. the rate difference could be there, but there is no other difference at all. choose any bank which GIVES you the loan

  3. Go for an established leader like HDFC. They have been leaders in this business right from the start., and have set standard policies, which will benefit you.

    For e.g HDFC ensures that the builder & completes submits documents like registration, etc. in time. HDFC also usually follows a progress-linked payment scheme. So the builder is only paid at building milestones being achieved. HDFC sends its own surveyor to check on the progress and only when satisfied, releases the payment.

    Also, they do not attempt to grow the fastest, say like ICICI Bank which cut many corners while trying to grow too fast. Invariably the processes are short-circuited and there is many a fine-print to read between the lines, which you cant.

    All PSU banks like SBI, Corporation Bank are safe bets on this front. I would compare quotes form HDFC and a PSU bank, and then decide. Go for a daily reducing balance or atleast monthly reducing balance loan scheme. And compare aplles to apples i.e. compare for the same tenure, the method of reucing balance used, and the actual EMI per lakh, between 2 banks. The other thing to consider is pre-payment penalty. I think today all banks prescribe it, the minimum being about 2%
    Good Luck!

  4. HDFC is the best in terms of service, although the interest rates may be higher than the public sector banks.

    If you are looking for the lowest interest rates, go for PNB Housing Finance.
    Somebody mentioned about LIC Housing Finance, although it isn’t bad but they have a stupid policy. If you decided to pay your EMI by cash then you have to write your name / loan account no. on every currency note you deposit with them. My friend had to undergo this. Just imagine if you are paying Rs. 20K EMI in Rs. 100 currency notes!!!

    Also the final piece of advice, if you want peace of mind don’t ever ever get a loan from ICICI…. if you do so, you will regret!

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