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A Complete Guideline To Qualify For A Mortgage Loan

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Mortgage loans are one of the most commonly availed financial tools used to finance numerous high-cost transactions or purchase such as higher education overseas, a lavish wedding or sudden medical expenses. Owing to the benefit of a mortgage loan, borrowers can fund their expenses well.

With the growing profitability in the business, the overall market for mortgage loan has witnessed an upsurge by 22% in the last fiscal that ended in March 2019. The amount peaks at 5 Lakh Crore, out of which NBFCs account for nearly half – 2.24 Lakh Crore.

It is the consecutive 4th time in a row that double-digit growth has been recorded in this sector. The success rate here has drawn a large number of lenders too. Besides, you can also avail tax benefits through your loan against property or home loan through this, which is why it has gained popularity among the borrowers.

What is a Mortgage Loan?

A mortgage loan is a simple loan where its borrower keeps his property as collateral with the financial institution to avail the loan. It is like a precondition that acts as a security for the lender.

These are generally long-term loans, and you need to repay the loan amount within a fixed time, which is usually 10 to 15 years or more. Periodic payments of the amount make it feasible and affordable for the customers to repay the whole amount conveniently.

How Do You Qualify For A Mortgage Loan?

As there is a wide variety of loans against property, people need to be aware of the same before availing one for them. They should assess their situation before they delve into one. The following points discuss the prerequisites to qualify for a loan against property, viz. –

For a salaried individual –

For self-employed borrowers –

The goal is to simplify the eligibility criteria so that more individuals can benefit from the same and do not feel inadequate whenever they want to expand their lifestyle. Therefore, the documents required to avail a mortgage loan are also basis ones. They are mentioned hereunder –

Apart from these basic requirements, you would also need to provide documents like income proof irrespective of whether you are a salaried individual or a self-employed one.

As a salaried individual, you need to produce your recent salary slips, IT returns and account statements of the previous 3 consecutive months. Similarly, if you are self-employed, you will need to show the account statement of the last 6 months as proof of income.

Make sure you know how your credit score affects your eligibility for a LAP; it is advisable to improve the score before applying for one.

Reasons To Avail Mortgage Loans

It is due to these benefits that individuals are drawn towards such loans. You are likely to receive the following benefits through mortgage loans.

Refer to lenders like Bajaj Finserv for such features as well as for pre-approved offers which help make availing loans easier and quicker. These offers are available on numerous financial products such as loans against properties, home loans, business loans, etc. Check your pre-approved offer today by providing only a few necessary details online.

Refer to lenders who not only offer affordable loan against property interest rates but additional repayment-friendly features such as no-charge part prepayment and foreclosure, etc. As we know, there are several types of mortgage loans available, hence it is better to choose which is best for you.

 

Home loans or loans against properties alike, mortgage loans can help you utilize the intrinsic value of your property to avail a substantial amount of funds as an advance at affordable interest rates.

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