How to Apply For a Mortgage Loan – Complete Guide
Aug 12, 2024
A mortgage loan, often referred to as a Loan Against Property, is a financial product through which you can borrow money by pledging your property as collateral. The property could be either residential, commercial, or industrial. SMFG Grihashakti offers a substantial loan amount of up to 75% * of the property’s value, subject to your eligibility and property evaluation.
The funds obtained through this loan can be used for various purposes, including business expansion, home renovation, education, medical emergencies, or debt consolidation. A flexible repayment structure of up to 30 years* allows for manageable monthly payments.
If you are going through the mortgage application process for the first time, it might seem complex at first. Understanding how to apply for a mortgage loan can help you prepare in advance for a smoother experience. Let us see in detail the steps to apply for a mortgage loan, the mortgage application checklist, and the required documents for a mortgage application.
Table of Contents
- How to Apply for a Mortgage Loan
- Things to Check Before Applying for a Mortgage Loan
- Documents You Need for a Mortgage Application
- Conclusion
- FAQs
How to Apply for a Mortgage Loan
Applying online for a Loan Against Property with SMFG Grihashakti is simple and quick. Following are the steps to get a mortgage:
1. Click on the “Apply Now” button on this page. Select the option for a ‘Loan Against Property’ and specify whether you are salaried, self-employed, or an SME.
2. In the following online form, enter your mobile number correctly and validate the same with a 6-digit OTP.
3. Once your contact information has been successfully verified, you can proceed to add information related to your personal details, employment history, and bank account.
4. Upload the scanned copies of the documents required for a Loan Against Property.
5. Complete the loan application by clicking on the ‘Submit’ button. In a short time, you will get to know your loan application status.
6. After this, your application will go through various checks. Our representative may contact you in case we need additional information.
7. Once your eligibility, documents, and the property have been verified, the loan can be sanctioned. The final loan approval and funds disbursement will take place after you have reviewed and signed the loan agreement.
Mortgage loan application tip: Keep your documents up-to-date and error-free to speed up the mortgage approval process.
Things to Check Before Applying for a Mortgage Loan
Before you think about how to get a mortgage loan, it is crucial to consider a few key factors to strengthen your loan application:
- Credit Score: A higher score can result in better interest rates and loan terms. Lenders usually prefer a score of 700+ for mortgage loans.
- Debt-to-Income Ratio: Assess your current debts compared to your income to ensure you can manage additional debt comfortably.
- Property Valuation: Understand the market value of your property to determine the potential loan amount you can secure. Use a loan-to-value calculator to estimate how much loan you can get based on your property value, income, and existing obligations.
- Research: Compare different lenders to find the best interest rates, loan terms, and customer service.
- Additional Costs: Be aware of processing fees, prepayment charges, and other associated charges.
Documents You Need for a Mortgage Application
Following are our mortgage application document requirements for the salaried, self-employed, and SMEs:
| Type of Document |
Salaried |
Self-Employed |
SMEs |
| Proof of Identity |
● Passport copy
● Voter ID card
● Driving license
● PAN card
|
● Passport copy
● Voter ID card
● Driving license
● PAN card
|
● Passport copy
● Voter ID card
● Driving license
● PAN card
|
| Proof of Address |
● Ration card
● Telephone bill
● Electricity bill
● Rental agreement
● Passport copy
● Bank passbook/statement
● Driving license
|
● Ration card
● Telephone bill
● Electricity bill
● Rental agreement
● Passport copy
● Bank passbook/statement
● Driving license
|
● Ration card
● Telephone bill
● Electricity bill
● Rental agreement
● Passport copy
● Bank passbook/statement
● Driving license
|
| Proof of Age |
● PAN card
● Passport copy
● Any other certificate from a statutory |
● PAN card
● Passport copy
● Any other certificate from a statutory |
● PAN card
● Passport copy
● Any other certificate from a statutory |
|
authority |
authority |
authority |
| Proof of Income |
● Bank statements (bank statements or bank passbook for the last 6 months) OR Salary slips for the last 6 months
● Form 16
● Income Tax Returns for the last 3 years
|
● Bank statements (bank statements or bank passbook for the last 6 months)
● Income Tax Returns for the last 3 years
● Income statements and other financials for the past 2 years attested by a CA
|
● Bank statements (bank statements or bank passbook for the last 6 months)
● Income Tax Returns for the last 3 years
● Audited financials for the last 2 years
|
Documentation pertaining to the property offered as collateral is also necessary.
*Please note that additional documents may be requested depending on your individual profile and SMFG Grihashakti’s policy at the time of loan application.
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Conclusion
Securing a mortgage loan can be a significant financial step. Whether it's for business expansion, home renovation, education, or other significant expenses, leveraging your property's value can provide the necessary funds with manageable repayment options. Understanding how to apply for a mortgage, the required documents, and the mortgage loan eligibility criteria can improve your chances of loan approval.
Ready to unlock the potential of your property? Apply today for an SMFG Grihashakti Loan Against Property. Benefit from competitive interest rates, flexible repayment options, and a dedicated support team to answer any of your queries.
FAQs How to Apply For a Mortgage Loan
How long does it take to get a mortgage approved?
After submitting your online application, you will know in a short time whether your loan application will be considered for further processing. Your application will then go through various checks. The mortgage loan application timeline will depend on your eligibility and the accuracy of the submitted documents. Please note that offline applications may take more time to process.
What income do you need to qualify for a mortgage?
The qualifying income for a mortgage loan differs from lender to lender. The requirements also differ for salaried individuals, self-employed individuals, and SMEs. Along with income, your existing debts or expenses will also be considered. Contact us to know the exact income requirements for your individual profile.
What is the maximum loan amount on a mortgage loan?
SMFG Grihashakti offers mortgage loans or Loans Against Property up to INR 5 crores* or up to 75 %* of the property’s market value.
If a property is jointly owned; can one still take a Loan Against Property co-applicant?
Yes, if a property is jointly owned, both owners can typically apply for a Loan Against Property as co-applicants. However, specific eligibility criteria and documentation requirements may vary between lenders.
Who can take a mortgage loan?
Individuals who own a property, whether salaried, self-employed, or running an SME, can take a mortgage loan, provided they meet the lender's eligibility criteria.
What is the purpose of a mortgage?
The purpose of a mortgage or a Loan Against Property is to borrow money using your property as collateral. The approved funds can then be used for various needs like higher education, home renovation, business expansion, medical emergencies, or debt consolidation.
Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.