Mortgage

What Is a Mortgage? Your Go-to Guide to Getting Loan Against Property

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Having a property can be a blessing to an individual. It lets you apply for a loan against your property. This helps you meet your financial expenses related to personal requirements, education as well as businesses. A Loan Against Property can be applied by both Salaried Individuals as well as self-employed individuals. Following is a list of generic factors taken into consideration while understanding the eligibility for a home loan: Individuals’ Monthly/Yearly Income Minimum of 21 years of age Valuation of Property If there are any liabilities existing Current work experience Total number of dependants finance documents. Steps to apply for Home Loan: 1. Applying for the Home Loan: The application form can be downloaded from online banking services or requested at the bank physically. The individual is asked to fill the form with necessary details and attach copies of related documents like ID and Address Proof, Income Proof, Educational details proof, age proof, bank balance statement and other variables as requested. Instant provisional approval within 24 hours is guaranteed by a few esteemed banks when applied online. The form and the non-refundable processing fees should be sent to the bank for approval process. Processing fee slab varies between 0.25% to 0.50% from one bank to another. The processing fee is used for the maintenance and processing procedure of the loan applied for. 2. Discussion with Bank Officials: After the application form is submitted, the bank will have a face to face evaluation process to discuss the payment capacity, loan amount and other relevant documentations for the loan against property. The discussion usually occurs in the first 72 hours of applying for the loan 3. Investigation Process: A field investigator visits your residence to verify information stated in the application form. Cross verification and checks are done by the representatives with the references noted down by the applicant. 4. Loan Sanction Offer Letter: On loan sanction, the bank snail mails an offer letter to the applicant with details entailing the home loan, i.e, amount sanctioned, interest rate revised for the loan, type of interest chosen, tenure of loan, mode of loan repayment, schemes or special offers if applicable and other necessary terms and conditions. 5. Legal Document Submission: The bank will request legal documents related to the property to avail the loan. A legal check is then done pertaining to the documents. The bank holds up these documents until the complete repayment of the loan amount. 6. Technical Valuation, Registration and Signing: Along with the legal check the bank also conducts a technical evaluation of the property. The bank looks out for quality and progress of the property. This check is conducted to ensure viability of property and clear title to meet its valuation standards as levied by the finance institution. After technical and financial valuations, the home loan registration process is initiated. A bank lawyers then prepares stamped papers with legal loan documents. This agreement is then needed to be signed and submitted back to the bank with post-dated cheques, depending on the mode of payment by the bank or finance institute.

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Robert B. Wilfong

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