Many potential homebuyers face the challenge of not having ample funds to buy a property of their choice. While a majority are dependent on loans, it is not necessary that a homebuyer would be sanctioned a loan amount of their choice. Hence, homebuyers are suggested to get a pre-approved home loan.

However, at times, pre-approved and pre-qualified, are two such terms that are confusing for many.

Here’s a information on how the two are different

• TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of property excluding agricultural land.
• Stamp duty
• Service Tax – Applicable if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer. If a `ready to move in’ property is purchased from the seller, service tax is not applicable.
• Value Added Tax (VAT) – If applicable in the concerned state.