Mortgage Loan: What Everyone Should Know Before Applying For One

In life, sometimes we face unavoidable expenses such as medical emergencies, higher education, marriage or business expenses, for which we require a large amount of funding. One such solution that comes first in our mind to ease this financial burden is to avail mortgage loans. Keeping your family home or business property as collateral to secure the funding from the lender can be pretty overwhelming for anyone, especially when you are getting your hands on quick mortgage loans in Hyderabad for the very first time.

Having a thorough knowledge of mortgage loans before visiting a loan lender will not only help you find the best loan option for your specific requirement but will also keep you and your family at ease.

Briefing on the mortgage loan

A mortgage loan or the loan against property can be provided to the borrower by keeping their residential house, non-agricultural land, business property or commercial shop as an asset of security with the lender.

The residential or commercial property, which is to be kept as collateral at the lender, should be fully constructed, freehold property, have marketable value, and most importantly, it should be free from any kind of mortgages or other charges.

Who can avail of the mortgage loan?

Mortgage loans can be easily availed by the individuals, salary-based employees, businessmen, proprietary firms and any other field of professionals having an eligible property against which the loan can be taken.

What does the loan amount depend on?

The loan amount depends on two major factors, i.e., the market value of the collateral property and the income of the borrower; for example, if the property is primarily secured with the bank, then usually the borrower can get the loan amount equal to the 50% of the market value of the property, whereas loans taken through private institutions can vary greatly depending on various factors. The income criteria of the borrower are also considered in the procedure.

The minimum loan amount availed by the bank is 1 lakh, whereas the maximum loan amount varies with different banks.

Documentation and tenure

Before visiting the lender to finalize your mortgage loan, you should be prepared with few documents in hand, such as the last three annual income statements, income tax returns, property, encumbrance certificate, property tax receipt, and other relevant documents (identity proof such as passport, ration card, voter ID or driving license) asked by the lender.

If you are worried about the repayment of your loan, then don't worry, as the maximum tenure for the repayment of the mortgage loan can be stretched up to seven years.

What happens if the borrower is unable to repay the loan amount at the time?

If the borrower is unable to repay the loan amount to the lender in time, then the property that was kept as collateral can be repossessed by the lender to recover the outstanding loan amount, or the court can order foreclosure of the property to retrieve the due value.

When you are on the lookout for quick mortgage loans in Hyderabad, you can connect with the dependable lending hubs. In fact, you can hire loan advisors that help you borrow funds wisely. Now, you know everything about the mortgage loans, then why don’t you take their benefits right away?