buying the first house or apartment is a challenge that requires great effort and represents a commitment for the person and bank. although mortgage loans are used mainly to buy a home, they can also be used to purchase land.

however, asking for a mortgage is a significant step, since it is possibly the most amount of credit you will ask for in your entire life. if you are one of those who is thinking about asking for a mortgage to buy a house, follow these tips that will help you in the process of submitting a home loan application.

make sure you meet the requirements

at the time of granting credit, the banks take into account specific essential requirements of the client. before applying for the mortgage, you must make sure that you meet the profile and that the bank will not reject your proposal. some factors such as home loan eligibility, age limit, identification proofs, etc. since banks usually grant credit to people between 18 and 75 years. in addition, another circumstance that entities will take into account will be the income you have or the type of employment contract you have.

prepare the necessary documentation

the bank will analyse all the information you provide, so it is convenient to prepare all the documentation required and provide concepts such as the level of income you have along with extra payments or annual bonuses. with all submission of your documents, the bank will decide to approve a loan. usually, the bank will ask you documents like proof of identification such as pan card/ passport/ voter id card, latest payroll, last declaration of income and assets, annual and periodic vat payments (only if you are self-employed) and receipts of payments of other loans you have.

calculate the exact amount you need

before asking for the mortgage, you must know what exact amount you need to pay for the home. for this, you must bear in mind that the purchase of a house carries other costs like the appraisal, the notaries or the registration charges. this type of extra surcharges will increase the final money you disburse. also, you should be aware that the bank will give 80% loan on the value of the appraisal of the property. for this, you must have 20% of your saved money to buy a property. in this way, you will have a better financial situation.

pay attention to the small print

when you choose the mortgage, you should look at something more than the publicity made by the bank and thoroughly examine the condition of the mortgage. once you sign it, there will be no going back. for this, you can seek the advice of an expert to guide you and warn about certain abusive conditions whose application is illegal, such as some ground clauses that are not clearly reported to the user, since they set a minimum interest. 

choose a mortgage that suits your situation

there is no single mortgage, but there are several types. the most widespread are the mortgage at fixed, variable and mixed interest rates. in fixed interest rate loan the interest rate doesn't fluctuate during the fixed period of the loan. a variable interest rate is an interest rate on a loan or security that fluctuates over time. a mixed mortgage combines a fixed mortgage and a variable mortgage. however, the first one provides security because it keeps its interest rates unchanged, that is, throughout the loan, the fee payable will be the same.  so before applying select the best bank for a home loan that suits your budget.

compare mortgages before signing

you have to compare mortgages before signing. in this way, you can find the best conditions or facilities for payment of your loan.  once you have decided the loan that best suits your interests, it is convenient to compare the offers of several banking entities. keep in mind that before signing a mortgage loan contract, you must know in depth the characteristics of the product you are going to hire, to be able to adopt an informed decision, based on your needs and preferences.

get pre-approved loan

it is advisable to get your home loan pre-approved before you select your home. pre-approval helps you fix your exact budget and makes your home search focused. this even helps negotiate better and close deals faster. you can also check with the best real estate portal about the availability of excellent properties in your preferred location within your budget.

check the documentation in the notary

before proceeding with the formalisation of the loan, it is essential that you scrutinise the document, and you verify the conditions reflected in it are those previously agreed with the entity, included in the binding offer. you have the right to have the notary to formalise the mortgage advice you, advice impartially, provides assistance and report in a free and understandable manner in the contracting of mortgage loans. take this opportunity to resolve all your doubts about the contract and have everything clear before signing.

owning a house is one of the significant steps in your life. visit https://propertyadviser.in and we guide you to select the best home that suits your lifestyle and budget.

by: shailaja k