User talk:Priyabrata05

Pre-approved Properties for Home Loan
Pre-Approved properties are properties whose legal status has already been verified and approved by any bank or financial institute(FI). Many large builders get their projects “pre-approved” by specific home loan lenders. These banks/financial institution (FI) do a comprehensive check of all the legal documents of the title of that project, the stage of construction as well as the builder's track record to complete the project in time. It then declares all properties in the project to be “pre-approved”. So the investor does not need to go through legal and technical checks in case of a “pre-approved” property.

If the property is pre-approved by a bank/ FI, as a buyer it would be safe to assume that the builders’ documents are in place and the construction is legally authorised. The reason being, banks/FIs have a vested interest. They would have provided loans to quite a few buyers of that property. Any delay in construction, would affect the bank/FI financially as EMIs for several customers would start on the possession of the property. Also many a times, banks provide loans to the builder of the property that they have pre-approved. So their due diligence can be relied as it is in their interest also that construction goes on uninterrupted.

However, even if a property is pre-approved, it does not imply that the bank/FI will in any way be responsible for the delay in construction by the builder for whatever reason. Also, you cannot expect the bank/FI to take any legal action against the builder or waive off any charges for you. All pre-approved means is that the property is legally authorised and the builder is a trustworthy one.