Buying property can prove to be a hefty task for many and a dream for other. However, it is not impossible at all with the right bank or institution anybody can own a home.
First of all select an institution, which is in business of house financing. In Pakistan, almost all commercial banks, whether private or state owned, are in business of house financing like Apna Ghar scheme of Bank of Punjab. Other banks like MCB, UBL and HBL also deal in providing finance for homes. A stand out institution in this business, which is purely devoted to this task, is the government House Building Finance Corporation (HBFC). You may select any institution as per your liking.
Contact the institution you’ve selected and apply for the scheme of house financing on the prescribed application form, provided by the institution. The institution would normally demand following documents from you:
- Computerized National Identity Card (CNIC)
- Income certificate, which clearly specifies source of income, and the amount of income as well.
- Tax return of FBR.
- Current residential status.
- Any other document as demanded by the institution
- A personal guarantee.
The institution would charge you a nominal fee, for the sake of application processing. And would require some time for the purpose of verification of data provided by you.
Now there are certain options available to you. These are:
- The institution would provide you a home as per your requirements.
- You can look for a home of your choice in any locality and ask the institution to pay for the amount on your behalf.
- You can look for any land in any area and then build your house on it as per your choice. All expenses of the construction will be borne by the institution as per agreement.
Select any of the option mentioned above and then inform the bank or HBFC about your choice.
The institution would assess your financial capacity by a team of highly qualified experts. The assessment would depend upon your financial resources, your source of income and credit history. Credit history means the amount of loans, you have taken previously and the time of returning of those loans to respective institutions. After qualification as a prosperous candidate, you will be granted a loan according to the requirements.
The financial institution would charge some amount from you in name of down payment and rest will be paid in installments. The schedule of down payment and installments is provided by the institution and should be carefully studied before agreeing on it.
In case you default in the payment, the bank reserves the right to take back the property and proceed legal actions against you. All the terms regarding this are mentioned in ‘Terms and Conditions’ portion of the agreement. After the payment of amount in full, the ownership property is transferred to you. However, some financial institutions transfer the ownership prior to payment in full.