Introduction: A mortgage loan is often the first step towards owning your dream property. Understanding how it works, especially in the Indian context, can save you time and money.
1. Types of Mortgage Loans Available:
- Home Loans: For purchasing a new or resale property.
- Loan Against Property (LAP): For personal or business needs using property as collateral.
- Reverse Mortgage: For senior citizens to convert property equity into cash.
2. Key Terms You Should Know:
- Principal: The original loan amount.
- Interest Rate: Fixed vs. floating rates.
- EMI (Equated Monthly Installment): Monthly repayment amount.
- Tenure: Duration of the loan.
3. Eligibility Criteria: Banks evaluate your credit score, income, employment stability, and existing debts. Maintain a good CIBIL score for better interest rates.
4. Documentation Required:
- Identity and address proof
- Income proof (salary slips, IT returns)
- Property documents (Sale Agreement, Title Deed)
Conclusion: Navigating mortgage loans can be complex. Let PaperVerify help you with document verification, ensuring your loan process is smooth and error-free.
