apply for Mortgage Loans

What are the Key Benefits of a Mortgage Loan?

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A land mortgage loan or a loan against property (LAP) is a type of loan that you can avail of against the value of your property. The loan amount that you can avail of depends on the value of your property in the market. Generally, financial institutions offer up to 60% to 70% of your property’s value as a loan.  

Compared to other secured loans, the property loan interest rates are lower and most affordable. However, it is worth noting that if you wish to secure a lower property loan interest rate, you will have to convince your lender that you have a stable income, a healthy credit score, and no current financial obligations.  

A mortgage loan comes with various benefits that you can avail of while applying for a loan:  

  • It serves multiple purposes, which means you can take a loan against property to cover the cost of a medical emergency, education, wedding, international travels, car repair, home renovation, etc. 
  • Some lenders may even offer lower to no prepayment charges. So, if you wish to prepay your loan, check with your lender if they have such a benefit included in the loan agreement. 
  • The process of applying for a loan against a property is simple and easy.
  • Unlike unsecured loans, you can opt for a loan tenure of up to 15 years. 
  • Since the loan tenure is longer, it significantly brings down your monthly. It is suitable for people who can not afford higher EMIs. However, if you have the budget, choose a shorter tenure to reduce the total of borrowing.

Must Read: Understand the difference between Loan and Mortgage

What is a Mortgage Loan, And How To Get One For Yourself?

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A mortgage property loan is a secured loan that allows you to access funds to meet your financial requirements without putting any burden on your savings or investments. To get a loan, you need to pledge your property as collateral. It means that if you default on your repayments, your lender has the legal rights to sell your property to recover the loan amount.  

The loan amount that you can get depends on the value of your property. You may get up to 70% of your property’s value on a loan. The interest rate on a mortgage property loan is lower than other secured loans, and the loan tenure can go up to 15 to 20 years. Before applying for a mortgage loan, it is imperative to assess your loan affordability through a mortgage loan calculator available online.  

To apply for a mortgage loan, you will have to check with your lender about their eligibility criteria and ensure to meet them. Here are the requirements that you need to meet:  

  • You must be at least 21 years old at the time of loan application and 65 years during the loan maturity.  
  • You must be either a salaried employee of a company or a self-employed person. 
  • You must not have any current financial obligations. 
  • You must show a stable income based on your lender’s policy. 
  • You must be working in your current company for at least one year and have work experience of at least three years.  

 Besides meeting the eligibility criteria of your lender, prepare and submit the following document proofs: 

  • Identification proof 
  • Address proof
  • Salary slips 
  • ITR or form 16 
  • Bank statement

Check out the eligibility requirements of your lender to apply for a mortgage loan right away.

Must Read: 6 Steps of the Mortgage Loan Process: From Pre-Approval to Closing

How to Get the Best Deals on your Mortgage Loans?

Mortgage Loan (LAP)

Mortgage loans are the ones that allow you to get a sizable credit line for collateral. However, every loan isn’t the same as you need to keep an open mind for getting the best deals in the existing lending space.

In the subsequent sections, we shall take a look at the best possible strategies for helping you save money on a mortgage loan. Here is a list:

Check These to Get the Best Deals on your Mortgage Loans:

  • Compare Deals and Offers

Comparing different mortgage loans is the best possible way to get a good deal. You need to compare different lenders and must go with the one offering the best rates, lowest processing fees, and minimal overheads.

  • Best Interest Rates

It is important to choose well and eventually go with the best mortgage interest rates, to save some money on the payments. A competitive interest rate ensures that you need not pay a hefty cumulative sum by the end of the tenure.

  • Seamless Restructuring

A good lender is the one that offers flexible repayment options, especially when loan restructuring is concerned. For instance, if you are planning to get a car loan, you can choose the tenure as per your existing financial standing. Every lender offers a mortgage loan EMI calculator to make repayment structuring easier for the borrowers. 

In addition to these, it is necessary to maintain a healthy CIBIL score to qualify for better and low-interest loans. Therefore, if you want to save money on mortgage payments, it is crucial to fix your credit history, beforehand.

Must Read: 6 Steps of the Mortgage Loan Process Explained