If you are going to take a home loan then it is important for you to know this information about the various charges associated with it, your work will become easier.

Home Loan: Having one's own home is everyone's dream. But buying a house costs a lot. In such a situation, people buy a house with the help of home loan. Take a long term loan related to home loan. So you will have to pay a lot of interest in the long run.

Customers should keep many things in mind while taking a home loan. Some charges related to home loan are also one of these. Banks charge various types of charges along with home loan.

Application fee
This is taken to process your home loan application. This fee is charged whether you get the loan or not. This fee is not refundable. If you apply for a loan at a bank or NBFC and later change your mind, your application fee will be void. Before applying, make sure from which bank or NBFC you are taking the loan. The application fee is charged in advance along with the loan application. However, some banks offer the facility of paying a portion of this fee along with the loan application and the rest before the loan is disbursed.

legal fee
Banks or NBFCs usually charge external lawyers to investigate the legal status of the assets that the financial institution borrows from its customers. Of course, if this property has been pre-approved by the organization, it will not charge a fee. You need to know from the organization whether the project you are going to invest in has prior approval or not. This way you can save legal fees.

mortgage deed fee
This fee is charged while opting for home loan. This is usually in the form of a percentage of the home loan and forms a major part of the total fee amount paid for taking the loan. Some institutions waive this fee to make the home loan product more attractive.

commitment fee
Some banks or NBFCs charge a commitment fee in case the loan is not taken within a certain time frame after the loan is processed and approved. This is a fee that is levied on undisbursed loans. This fee is usually charged as the difference between the sanctioned and disbursed amount.

prepayment penalty
Prepayment means that the borrower pays the entire or outstanding loan amount before the end of the loan tenure. Due to this the bank incurs interest rate loss. For some reason, the bank charges a penalty to compensate for this loss. These charges vary from bank to bank.