Mortgage loan eligibility is reasonably simple and straightforward, and so are the documents required. You can apply for a loan amount that is equivalent to 60% of the property value. Moreover, the repayment term can be as high as twenty years. You may also use an eligibility calculator to check the eligibility and the loan amount.
Read on to find more information about mortgage loan eligibility and the documents required.
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Mortgage Loan – Eligibility
Mortgage loan eligibility affects the interest rate and your satisfaction level with the loan.
The following are the basic requirements of a mortgage loan:
- You have to be a salaried or self-employed professional or non-professional.
- You must be a citizen of India.
- Your age should be above 21 at the time of loan application and below 60 at the time of loan maturity.
- You must own a residential or commercial property. The property might be self-occupied, rented, or vacant.
Besides the eligibility criteria mentioned above, the mortgage loan interest rate and approval also depend on the following factors.
- Credit Score – The borrower’s credit score has a significant impact on loan approval. The higher your credit score is above 750, the better is the loan approval chances.
- Monthly Income – Your monthly income must be above the lender-set minimum income threshold. The higher it is above the threshold, the better are the loan approval chances.
- Property Location – The property location determines the mortgage loan amount and interest rate. For example, if your property is in a locality with all modern amenities nearby, you can get a high loan amount.
- Loan to Value – The loan to value is the amount you can get as a loan. Generally, lenders do not approve an amount greater than 60% of the property value. Hence, knowing the property value helps you choose the correct loan amount and increases the chances of loan approval.
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Mortgage Loan – Documents Required
The documents required to avail of a mortgage loan are as follows:
- Application Form and Photograph – You have to attach the latest passport size photograph with the application form.
- Age Proof – You may submit PAN Card, Passport, Birth Certificate, or any government-issued certificate certifying your age.
- Residence Proof – Documents like Passport, Driving License, Ration Card, Electricity Bill, etc., serve as residence proof.
- Income Proof – For salaried professionals, the appointment letter and three months’ salary slips act as the income proof. Self-employed professionals need to furnish their business profile, including registration details, and Profit & Loss Statement.
- Income Tax Returns – You may need to submit a minimum of two years’ Income Tax Returns or Form 16.
- Bank Account Statement – Salaried professionals need to submit six months’ bank statement and self-employed professionals need to submit 12 months’ bank statement.
- Property Papers – You have to submit original property papers such as Title Deed, Transfer Certificate, etc., to avail of the mortgage loan.
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Conclusion
Applying for a low-interest mortgage loan is one of the simplest things you can do when you need money urgently. Knowledge about the eligibility criteria and arranging the documents in order will ensure that the loan gets approved quickly.