5 Tips to Help You Get the Best Deal on Mortgage Loan

A mortgage loan is a secured loan option that allows individuals to get a loan based on fixed assets like a house or commercial property. The lender can keep the property until the borrower has not fully repaid the loan amount. This loan amount can be used for any purpose based on your needs. Some common reasons for taking a mortgage loan are:

1. Buying a house
2. Plan a vacation
3. Medical Emergency
4. Financing higher education
5. Get funds for starting or growing your business.
6. Organizing a grand reception for the wedding

While a mortgage loan is a great financial tool that offers loans at the lower interest rate, some borrowers are sceptical about it due to the myths surrounding it. To clear these myths and help individuals make better choices, these are some tips that will help you secure the most profitable deal on the mortgage loan.

5 Tips to Help You Get the Best Deal on Mortgage Loan

To ensure that you avail of maximum benefits with your mortgage loan, follow the handy tips shared below:

1. Check your credit: Though a mortgage loan is a secured loan type, and it comes with various benefits, you can get the best deal with a good credit score. So, before you apply for a loan, do not forget to check your credit score. Any discrepancy or mistake must be reported immediately to ensure that you do not face any trouble while applying for a loan. In case you do not have a good credit score, you can also plan to work on it.
2. Know your requirements: Blindly opting for a mortgage loan can be risky. If not paid on time, the lender has the right to take over your asset to repay the loan amount. Before taking the loan, a plan will help you know how much loan you need, where you have to spend the money, and your repayment plan.
3. Know your loan options: In this digital age, various lenders offer mortgage loans through their instant loan apps. Due to the tough competition, the mortgage loan interest rate and loan tenure may vary, helping you with your EMI. Therefore, ensure to check all the options and then finalize the lender, which offers the best loan terms. For this, you can also use the mortgage loan EMI calculator to check the best deal.
4. Check the eligibility criteria: Before applying for the loan, make sure to check the eligibility criteria. It boosts your chances of getting the loan approval. Some eligibility criteria include:
   1. The applicant must be a resident citizen of India.
   2. The applicant must either be self-employed and aged between 21 and 65 years or a salaried individual aged between 21 and 60 years.
   3. The applicant must have a commercial or a residential property in their name. If it is a shared property, then a NOC must be provided by the other holders.
   4. The credit score of the individual must be over 700.
      
5. Documents: Along with the eligibility criteria, there are certain documents that individuals must upload while filling the application form. The list of documents includes:
   1. Application form with a recent photograph
   2. Proof of Identity: Passport Copy /Voter ID card /Driving License /PAN Card)
   3. Address Proof: Ration card /Telephone Bill /Electricity Bill /Rental agreement /Passport copy /Bank Passbook or Statement /Driving License
   4. Age proof: PAN Card /Passport /any other certificate from a statutory authority
   5. Bank Statements: Bank statement /Bank Passbook for the last six months OR Last six months salary slips
   6. Form 16
   7. Income Tax Returns for the last three years
   8. Processing fee cheque
   9. Documentation about the property offered as collateral

Conclusion

The repayment potential of a borrower is assessed based on various factors like income, net monthly obligations, CIBIL score, qualifications/ job profile, etc. The loan amount offered by lenders depends on the valuation of the property that the borrower is pledging. So if you are looking for a secured loan option at a reduced interest rate, then a mortgage loan can be your best option.