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A mortgage loan, also known as a loan against property or a property loan, is a popular loan with borrowers. Many borrowers plan and use this mortgage loan, while others rush in for the loan to meet an emergency expense.
Whatever are your reasons for applying for this loan, here are the five things you should never ignore.
- The market value of your property – will determine the maximum loan amount that you can get. Generally, it is about 70-80% of the market value of your property.
- The lender’s trustworthiness – should be taken into account before applying for a mortgage loan. After all, you will be partnering with them for tenures going up to 30 years.
- The mortgage loan interest rate – will determine the monthly installment you are expected to pay each month. Even a slight difference in the interest rate can have a huge impact on your EMI. Hence, study the mortgage loan interest rate carefully when applying for a loan.
- The mortgage loan eligibility – is an important criterion that you should never ignore. If you do not meet the lender’s eligibility criteria, your loan application will get rejected. Visit the lender’s website or reach out to a representative to know the eligibility.
- The penalty clauses – are applicable when borrowers do not pay their EMIs or they do not pay the EMIs on time. Never ignore these clauses, as even one delay can have a significant impact on your finances.
Not that you know the five things never to ignore when looking for a mortgage loan, it will make the process of getting a loan easy and hassle-free.
Additional Read: Understand the difference between Loan and Mortgage
