Several financial institutions are lowering interest rates on credits as a response to the rate cuts announced by the RBI. Consequently, collateral-based funding like mortgage loans is set to become affordable and expand the secured credit market.
Nonetheless, individuals availing a mortgage credit should also look into several factors other than interest rates to choose the best mortgage funding option. Subsequently, they must follow a few steps to maximize benefits from these funds.
Steps to choose a mortgage advance
The best way to avail a mortgage loan is by comparing the features offered by different leading financial institutions. Nonetheless, to make a useful comparison, individuals must scrutinize a few fundamental factors emphasized in the following steps.
- Check the eligibility criteria
The first step to choose a suitable mortgage advance is to check the eligibility criteria accompanying it. Typically, most leading financial institutions set easy-to-meet eligibility criteria to provide the required financial assistance to applicants.
Usually, salaried resident Indians between 33 and 58 years of age, employed in an MNC, public sector or a reputed private company are considered eligible to avail the credit. For self-employed, the age eligibility and income requirement differ.
Another factor that plays a key role in the approval of loan application is an individual’s credit score and repayment capability. Meeting all these requirements allows individuals to avail a mortgage loan from reputed lenders at favorable terms of service.
- Compare the prevailing interest rates and charges
Interest rate is a decisive factor when it comes to gauging the affordability of collateralized advances like a home mortgage loan. Also, being a secured funding option, the accompanying rate of interest is usually competitive on these advances.
Nevertheless, individuals must compare the rates charged by different financial institutions to pick the most affordable option. Furthermore, they must also find out about other additional charges to make a better choice.
Typically, some financial institutions extend mortgage credits like loans against the property at a nominal rate of interest and are transparent about other charges.
They also provide pre-approved offers to customers to make the overall experience of availing a loan convenient and less time-consuming. Such offers apply to several financial products, including home loans and loans against property. Check your pre-approved offer online in a few steps by simply entering your name and contact details.
- Factor in the loan tenor
The choice of tenor also weighs critically while selecting a suitable loan option. Typically, leading financial institutions provide a flexible tenor ranging up to 20 years for credit repayment.
The choice of loan tenor influences both interest accrual and the EMI amount significantly. One can use an online loan EMI calculator to better understand the relation between tenor and EMIs payable. Furthermore, after factoring in their funding need and repayment capability, individuals must select an ideal tenor for their loan against property or any other mortgage advance.
- Find out about the application and documentation process
Individuals must also look for credit options that extend a simplified application process to avail a hassle-free mortgage loan. With reputed lenders, one can apply for a mortgage credit by merely visiting their website and filling an online application form.
Also, one must make sure that the documentation is minimal to initiate prompt loan processing. Most lenders require applicants to submit documents like –
- Latest salary slips for salaried applicants
- Financial statements of the business for self-employed individuals
- Bank account statements
- PAN or Aadhaar Card
- Address proof
- IT returns
- Mortgage documents
Applicants must find out the entire list of documents needed to apply for a loan against property from their respective lender beforehand to streamline loan processing.
- Check the terms of approval and disbursal
Financial institutions that follow a simple application process are often prompt when it comes to the approval process. It comes in handy for individuals who intend to avail advances like home mortgage loans at the earliest. Most of the time, financial institutions disburse the loan value to a borrower’s accounts shortly after approval.
- Look for an online account management facility
Individuals who wish to keep a track of their loan status on the go should look for a lender who extends easy access to their online loan account. It will help access loan details more conveniently and will allow applicants to better understand any loan-related development.
Other than these, individuals can also check if a mortgage loan comes with a balance transfer facility or not. Subsequently, they must find out about the associated terms and additional benefits for the convenient management of finances.