• January 29, 2023

Mortgage Loan: Documents Required and Complete Checklist

 Mortgage Loan: Documents Required and Complete Checklist

mortgage loan

Mortgage loans have become an attractive financing option lately. The borrowers can get these financing options at comparatively lower interest rates by mortgaging a high-value asset. Besides, they can use the big-ticket loan amount for any financial requirements as there are no end-use restrictions.

However, to ensure smooth and hassle-free mortgage loan approval, one should provide all the necessary documents to the lenders like income proof, previous banking and more. Here is a list of documents that one has to offer for availing of a mortgage loan.

Documents required to avail of mortgage loan 

To commence with the loan application process, the potential borrower must find out the documents needed by the lender. Both self-employed and salaried individuals can avail themselves of the loan; however, the document’s requirements can vary accordingly.

Documents required for self-employed individuals-

Below is the list of documents self-employed individuals need to keep handy:

  • ID proof like Pan Card/ Form 60 of all applicants, Voter or Aadhaar Card
  • A self-employed applicant needs to submit a bank account statement for six months
  • Address proof
  • Documents of the property to be mortgaged like encumbrance certificate, occupation certificate, possession certificate and many more

Documents required for salaried individuals-

Below is the list of documents salaried individuals need to keep handy:

  • Current salary slip
  • Bank statements for the previous 3 months
  • KYC papers like Aadhaar, Voter or PAN cards
  • Address and identity proof
  • Past IT tax returns
  • Papers related to collateral property like encumbrance certificates, occupation certificates, possession certificates and many more

Potential borrowers must note that this list is indicative and is subject to change from one lender to another. Besides this, if applied with a co-applicant, they must furnish address and identity proof documents and passport-size photographs.

Eligibility criteria to check before applying for a mortgage loan

Apart from learning about the different documents required for loan approval, borrowers should know about the eligibility criteria for loans against property.

Over the years, mortgage loan applications have become more streamlined and hassle-free. The lenders will carefully scrutinize the borrower’s repayment capability and accountability, apart from the estimated value of the collateral, before approving the application.

Here are the details of the eligibility criteria for both salaried and self-employed individuals

For self-employed applicants-

  • They should have a stable income flow from business
  • A borrower must be around the age range of 25 to 70 years
  • Individuals should be Indian residents owning property within the country’s boundaries

For salaried individuals –

  • The applicant must fall in the age bracket of 28 to 58 years
  • He/she should be an Indian resident owing property within Indian boundaries
  • Individuals should be employed at any private, public, or MNC for at least three years.

Besides these factors, other criteria include the following:

  • The potential borrower must indulge in good repayment practices to increase their eligibility
  • Applicants should have a good credit and work history
  • Individuals should also maintain a 750+ CIBIL score

A borrower must keep these eligibility factors in mind before applying for a loan against property.

In addition to this, one should also be aware of the various factors to consider while taking a loan against property.

Ways to avail the best mortgage loan interest rate 

Potential borrowers looking for the best mortgage loan interest rate can consider the below-mentioned factors:

Maintain a high credit score 

A high CIBIL score is one of the 4 major factors that can affect your mortgage loan rates. The borrowers should try to have a CIBIL score of 750 or higher to be eligible for the lowest interest rate on mortgage loan. This is done after carefully assessing their credit history.

Develop a good income profile 

The financial institutions consider the borrower’s income profile before sanctioning the loan. In this regard, the city of residence, age, employment status, income, and debt-to-income ratio are evaluated during the process. Borrowers with a stable income source can get a low-interest rate on their mortgage loans.

Conduct comparative research for the best rate

Potential borrowers must conduct market research before applying for mortgage loans. They can compare the institutions and then make a choice based on their requirements.

Potential borrowers following these ways can avail of LAP at affordable interest rates.

Various lenders also provide pre-approved offers to borrowers that help in simplifying the loan approval process. These offers are valid on various financial products like home loans. The borrowers can check their pre-approved offers by entering their name and contact number.

Hence, borrowers must go through the recent eligibility criteria and take note of it before applying for a mortgage loan. This will keep them updated and facilitate their loan approval process.

Robin Williams

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