Mortgage loans are loans availed of against collateral. Outside of India, both home loans and loans against property come under the broader category of property loans. However, within India, the term mortgage loans is synonymous with property loans. Several factors have contributed to the popularity of these loans, such as low-interest rates, high loan sanctions, long tenor and zero end-use restrictions. Individuals who own a residential or commercial property or a piece of land can avail of a loan against it by pledging it as security. The papers of the property stay with the lender until the borrower has cleared their dues. Once the dues are cleared, the borrower can get the lien removed from their property and ensure the property is back in their name and that the lender can make no claims over it in case of a legal issue. If you are planning to avail yourself of a property loan, familiarizing yourself with the mortgage loan application process will help you navigate the whole process smoothly and quickly. So, let us walk you through the process of applying for a mortgage loan.

The first step in the mortgage loan process is finding yourself a reliable and trustworthy lender who is willing to sanction you a loan on terms and conditions that work to your benefit alongside working for their benefit as well. Create a list of lenders who you find trustworthy and reach out to them. Negotiate with each one of them concerning the loan amount, the rate of interest they wish to charge, loan tenor, loan processing fee, penalties, etc. Next, use a mortgage loan application calculator to compare offers from all lenders and choose to go with the lender offering you the most lucrative deal. 

2. Once you have decided on the lender, apply for a loan. These days, borrowers can apply for a loan both online and offline. Submitting the loan application form will require you to pay a one-time, non-refundable loan processing fee. Pay this fee and submit your form. 

3. After you submit the form, your lender will go through and verify the information provided by you. If they have no reason to doubt your repayment capacity, they will approve your loan application. 

4. Next, you will be required to submit important documents, such as KYC, income proof and property documents. Document requirements will be communicated to you by your lender’s team. Submit all these documents. 

5. The next step of the mortgage loan application process is the step that takes the most time. Once you have submitted all the documents, your lender will verify each of the documents provided by you. Loans against property involve a substantial amount of money and thus, lenders must ascertain a borrower’s creditworthiness and repayment capacity before they extend them a loan. This is why lenders authenticate the documents and the information provided.

6. Once your lender has verified all the information provided by you and they are convinced, they will release a mortgage loan sanction letter containing details of the loan terms and conditions that they wish to extend to you. Go through the loan sanction letter carefully and if you agree with the loan terms and conditions provided, send a signed copy of the loan sanction letter to your lender. 

7. They will now release the final loan agreement and you will have to visit your lender’s office to sign this agreement. Once you sign the final papers, your lender will release the loan amount into your account. 

The mortgage loan application process in India is fairly basic. However, borrowers must keep in mind that the entire process can take from a few days to a few weeks. So, always keep some buffer time.