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Home Loan: If the house is in the name of grandmother or parents, will you get a home loan? Building a house or renovating an old house is an expensive task, for which people usually have to take a loan from the bank. However, when the land is not in your name but in the name of your mother or grandmother, then the process of taking the loan is a little different. In such a situation, what process do you have to follow and can you take a loan? Will you get a loan? This is a big question. Know here what you have to do so that you can get the loan if the house is in your mother's name.
You will get a loan to build a house
If you want to build a new house on the land in the name of your mother or grandmother, then first of all you will have to go to the bank and get the land documents checked. After this you can apply for home construction loan. Whereas if you want to renovate an already built house, then you can directly apply for home renovation loan.
Co-applicant for loan with mother or grandmother
According to property expert Pradeep Mishra, the best way in such cases is to make your mother or grandmother a co-applicant. The reason for this is that it is mandatory for all the owners of the property for which the loan is being taken to be co-applicants. This makes the process of getting a loan easier. The chances of getting a loan increases.
Why can't you take a loan in your name only?
Banks pass loans only when the land documents are correct. If the land is in your mother's or grandmother's name, the bank may refuse to give a loan in your name only. In such a situation, you have two options: either take the loan in the name of the legal owner or apply for the loan by making them a co-applicant.
Why can't you take a loan only in your mother's or grandmother's name?
Many people may wonder why a loan cannot be taken directly in the name of mother or grandmother. This is because the bank calculates the regular income of the applicant before giving the loan. If the mother or grandmother does not have a regular income then the bank may refuse to give the loan. Therefore, it is important that you also become a co-applicant so that the bank is confident that you can handle the responsibility of repaying the loan. If you have land in the name of your mother or grandmother, then you will have to become a co-applicant to get a loan for house construction, which will increase your chances of getting the loan.