The Mortgage Process

Would-be borrowers begin the process by applying to one or more mortgage lenders. The lender will ask for evidence that the borrower can repay the loan. This may include bank and investment statements, recent tax returns, and proof of current employment. The lender will usually run a credit check as well. If the application is approved, the lender will offer the borrower a loan up to a certain amount and at a particular interest rate. Thanks to a process known as pre-approval, homebuyers can apply for a mortgage after they've chosen a property to buy or even while they're still shopping for one. Being pre-approved for a mortgage can give buyers an edge in a tight housing market because sellers will know that they have the money to back up their offer. Once a buyer and seller agree on the terms of their deal, they or their representatives will meet at what’s called a closing. This is when the borrower makes their down payment to the lender. The seller will transfer ownership of the property to the buyer and receive the agreed-upon sum of money, and the buyer will sign any remaining mortgage documents. The lender may charge fees for originating the loan (sometimes in the form of points) at the closing.

What Is a Mortgage?

A mortgage is a loan used to purchase or maintain a home, plot of land, or other real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. The property then serves as collateral to secure the loan. A borrower must apply for a mortgage through their preferred lender and meet several requirements, including minimum credit scores and down payments. Mortgage applications undergo a rigorous underwriting process before they reach the closing phase. Mortgage Mortgages are offered by traditional creditors, mortgage-specific lenders, and mortgage brokers. Investopedia / Zoe Hansen How Mortgages Work Individuals and businesses use mortgages to buy real estate without paying the entire purchase price up front. The borrower repays the loan plus interest over a specified number of years until they own the property free and clear. Most traditional mortgages are fully amortized. This means that the regular payment amount will stay the same, but different proportions of principal vs. interest will be paid over the life of the loan with each payment. Typical mortgages last for 15 or 30 years, but some mortgage terms can be longer. 1

Repayment Of Home Loan

Repayment Of Home Loan On Equal Monthly Installment (EMI) basis. Targeted Customer Individuals of middle and upper middle class income group with regular, adequate, steady and stable source of income. Loan Tenure 3 to 25 Years Loan Limit Minimum Rs. 0.50 Million (5 Lacs) to Rs. 30.00 Million (Rs. 3 Crore) For purchase of land alone- Maximum Rs. 7.5 Mil. (Rs. 75 Lacs) Type of Home Loan Scheme Type Of Home Loan Purpose Maximum Financing Home loan purchase Purchase of house Purchase of land alone 80% of purchase Value 60% of purchase Value Home Loan Construction Construction of Houses 100% of cost estimate Home Loan Extension Additions/extension/renovation /modification 100% of cost estimate