5. Difference in value of the property

Are you planning to buy a property? If yes then this point is a must read. If you want to buy a  property and if you quote a value for that particular property then don’t be in a fiction that the bank will provide you the same. The bank has its own way for appraising a property and even they have experts for legal, technical and financial appraisal of the property. It will assign a value to a property based on their established parameters. Sometimes the value they decide upon might be significantly lower than the value you have quoted for the property. As a result the bank will only lend you the amount that they have fixed on the property. In order to avoid such situation the borrower can get the property valued from a bank approved valuator before applying for home loan.

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