How technical appraisal for home loan helps borrower
While determining the eligibility for a housing loan, a bank conducts a technical appraisal. The technical appraisal is an important stage in the whole process of availing a housing loan. This aspect of an appraisal process covers the documentation and legal sides of the housing loan, and is done once the credit appraisal process is over.
The technical appraisal is done on behalf of the bank. The objective is to ensure that all the documentation related to the property in question like allotment certificate, Katha etc is in order.
The due diligence exercise is carried out before disbursement of the loan. The report of the technical appraisal determines whether the loan can be given for the property concerned. It does not determine the quantum of the loan, which is covered under other appraisal processes.
The technical officer, on behalf of the bank, verifies the original documents, title certificates , clearance certificates , guarantees, security documents, income certificates , address proof etc and cross-checks all the furnished information with the records and documents submitted . A charge report is submitted by the bank's lawyers directly to the bank.
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