Things to know about Mortgage Loans

Before taking Mortgage Loans, all you need is to know all about Mortgage Loans. Many times, the term ‘Home Loans’ and ‘Mortgage Loans’ are interchangeably used, but in actuality they are quite different to each other and thus Mortgage Loan should be properly understood before taking a hands on experience.

In fact, Mortgage Loans are the loan types, which are put against the use of the property as collateral. There are many facts and features of Mortgage loans, which are essentials for the people to know. Here are the facts :

Term : Mortgage Loans are term loans, i.e., they are given for the particular amount of time
Tenure : The maximum tenure of the Mortgage Loan is around 10 years in case of the State Bank of India
Types of Mortgage Loans : Fixed Rate and Floating Rates are the two types of the Mortgage Loan
Fixed Mortgage Loans : Fixed Rate Mortgage Loan is the mortgage loan which features a fixed rate of interest for the entire amount of time
Floating Mortgage Loans : Floating Rate Mortgage Loan is the Mortgage Loan, where the interest is paid as per time slot. The Interest rate is fixed for a particular period of time after which it is adjusted based on the market
SBI Rate of Interest : In case of the State Bank of India, the Interest rate is around 12.5%
Prepayment : Some kinds of Mortgage Loan have the restriction of Prepayment; however, in case, of the State Bank of India, there is no prepayment Restrictions
Who can avail : Mortgage Loans can be availed both by the self employed and salaried people
Processing Charges : The Mortgage loans also involve some processing charges, which is in fact 1.01% in the case of the State Bank of India
Qualifying Criteria : When talked about the qualifying criteria for the Mortgage Loans, the aspects like Income, employment, liabilities, assets and credit history and many such factors are considered while qualifying for Mortgage Loans

Documents in general required for mortgage Loans

When we talk about the general requirements of documents meant for the Mortgage Loans, the documents in support of the Mortgage Loans can be detailed in the following ways :

Proof of Identity
Proof of Residence
Proof of Income
Last 3 months salary slips
Last 6 months Bank’s Statements
Latest Form-16 and IT returns
Photographs
Cheque for Processing fee
Some property related documents in the form of Title Deeds and Proof of no objection on the property

However, accurate information depends on the bank you choose. Thus, you need to visit your concerned bank and ask for the complete requirements of the documents for the Mortgage loans. In case, you are looking for the Mortgage Loans, you can choose State Bank of India, which is India’s most availed bank having the highest number of branches spread all over the country and with the most customer base all over India.

Mortgage August 29th, 2015

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