Are you trying to get a home loan? Our mortgage service is available for salaried and self-employed people with special offers for women customers. The customer can get pre-approved for a home loan at competitive interest rates with no hidden charges. The process of getting pre-approval for a home loan is easy and transparent. The borrower can get a pre-approved loan after submitting the essential documents that the bank needs. Our mortgage loan service provides in-principle approval for a home loan. You can get it before we recognize the property you chose for the home loan.
So, when you want to apply for a home loan and get its pre-approval, there are certain things you need to consider. Let’s take a look at them.
6 Things To Know Before Applying Loan Against Property
When you’re applying for a home loan, you need have the following details confirmed from your end:
Value Of The Property
A loan against property is provided against collateral like an immovable property such as a constructed residential/commercial property. Before deciding the eligibility and amount of loan, the lender will estimate your property.
The amount can depend upon the prevailing market value. Housing finance companies usually provide up to 50-60% of the market value of a property. Therefore, you should analyze the lender’s loan-to-value (LTV) ratio.
Since the loan amount against property is high, the borrower must fulfill the required income criteria to repay the entire loan. You can repay it in 12 months up to 30 years, though the tenure varies from one lender to another.
Any loan against property comes with an extended reimbursement tenure compared to a personal loan. The EMIs will extend over many years and, therefore, the rate of interest is much lower. A longer duration means lower EMIs, which reduces the monthly repayment burden.
The lender can approve the loan solely after confirming that the property incorporates a clear and marketable title. Further, the co-owners got to be a part of the loan and meet the standards.
Following are the documents you need to submit to the lender along with the application form:
- Proofs of identity, address and income.
- Ownership documents with a property valuation report.
Keep in mind to state the correct information because the lender can verify all the knowledge furnished.
Ability To Payback
The lender will evaluate your repaying capability with the assistance of your financial statements, reimbursement history, current loans, etc.
To Sum it Up
To get pre-approved for a home loan, you need to do your market research on various types of mortgages available. You need to be sure of what offer you’re going to finalize. The same also applies to the property you’re eyeing upon. Although, you make the final purchase after availing our mortgage service for pre-approval.
You also need to be 100% sure that you can repay it on time. Else, if you fail, the lender has the right to acquire possession of the encumbered property. This can put you in a great state of loss.