The process for Mortgage Loans involves multiple steps that you must navigate carefully. The approval of your loan greatly depends on your eligibility and how carefully you complete every step of the application process. The starting point would be to know what the process is.
Process for a Mortgage Loan: A step-by-step guide
Assess your eligibility and financial capability
The first step in the process for a mortgage loan is assessing your income, expenses, and credit score. You must fulfil the eligibility criteria set by your lender. Additionally, you should be able to afford future loan instalments.
Submit the mortgage application
Once you choose a lender, complete their loan application form online or offline. Make sure you enter accurate details and attach required documents such as income proof, property papers, and ID proof.
With Axis Bank, you can get a Loan Against Property through a digital application process. The loan amount starts from ₹5 lakh and can go up to ₹5 crore. The maximum loan tenure is 20 years.
Loan approval and property valuation
Once your application is reviewed, the lender will evaluate your property’s value and verify your eligibility. Your loan will be sanctioned if the lender believes everything is in order.
Loan agreement and disbursement
After approval, you will sign the loan agreement. The lender then disburses the loan amount, completing the mortgage lending process. Ensure you understand all terms before signing.
Who approves a mortgage?
Your lender, typically a bank or financial institution, approves a mortgage. The lender checks your creditworthiness by verifying your credit score, income, employment stability, and past credit behaviour. They also check the property details to assess its value before deciding the loan amount.
Conclusion
The first step towards getting a Mortgage Loan is understanding the mortgage process. Once you know the process, you can ensure that you satisfy the eligibility criteria, submit all the required documents, and contact your lender through the valuation and verification process. This can speed up your mortgage processing time considerably.
Also Read: 5 parts of your mortgage payment
FAQs
Q1. What are the 5 stages of a mortgage?
The 5 stages are application submission, document verification, property valuation, loan approval, and loan disbursement.
Q2. Is mortgage processing stressful?
The mortgage process can be stressful due to the extensive paperwork and the steps like verification and valuation. However, you can make it easier by submitting the correct documents on time and cooperating with your lender at every step.
Q3. What is the hardest part of the mortgage?
The hardest part of getting a mortgage loan is often meeting the eligibility criteria. Before sanctioning a loan, lenders check multiple aspects, such as credit score, past loan history, employment stability, income, and property valuation.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
