Ever since the COVID-19 pandemic forced the nation to go into lockdown, the impact was severely felt among all working classes. Lakhs of working professionals felt a shortage of funds either due to job losses or shutting down of businesses. However, those looking for a mortgage loan were in a better situation due to the easy availability of emergency funds. When lenders stopped offering personal loans, mortgages proved to be a great financial instrument to rely on by borrowers.
With mortgage loan rates still being low, the trend will likely continue in 2021 as well. With that in mind, we bring you a list of things to things to keep in mind in order to bag the best mortgage loan deals in 2021.
12 Tips to Avail the Best Mortgage Loan Deals Online
- While applying for a mortgage loan, first make sure that you have all the documents ready. Residence proof, identity proof, bank account statement for the last six months, list of personal assets and liabilities, documents of ownership of the property to be mortgaged, salary certificate for salaried people, and proof of filing income tax returns are the documents that most lenders ask for. Keeping all these documents checked and ready will help you avoid any future hassles and ensure your documentation process is seamlessly completed.
- A good down payment amount is the best way for getting the EMI reduced and making the loan more affordable. As much as possible, manage to make a larger down payment than the minimum set by the lenders.
- But even for those who cannot afford a down payment, there are zero down payment loans if the borrower is confident of paying his EMIs correctly.
- When comparing mortgage loans online, it’s a good idea to look for lenders which offer zero down payment. There are also government-supported schemes at low mortgage loan rates for those falling within a certain income bracket.
- Ensure that you have a good credit score of at least 750 for getting the best mortgage loan deal. Credit score, the number assigned by the Credit Information Bureau (India) Limited, looks at the individual’s credit utilization, repayment history, and credit inquiries in calculating this number. The higher a person’s credit score, the lower the interest rate is likely to be.
- Using an online mortgage loan calculator that instantly shows you the exact EMI for a particular loan amount and interest rate can help you a lot in trying out different options and deciding the best one.
- Even if your income is low, there are ways to get a good deal on a mortgage. The reasoning is that many lenders also take into consideration other things such as any assets that give you financial stability, how much you have been able to save, and how good your credit history is. If all these are positive, there is a high chance that you will get a good mortgage even with a low income.
- Check if there are any foreclosure charges involved for the loan. There are lenders who do not charge a penalty for pre-paying the loan, especially when the loan has been given in the name of more than one borrower.
- Read between the lines of the loan documents because there could always be hidden charges apart from the mortgage loan rates that are not stated obviously. Use them also while comparing the different offers to get the best deal.
- It is not enough to have a good credit score at the time of applying for a mortgage loan. You should maintain that score during the loan processing period and ideally till the loan is fully repaid.
- Make sure that there are no encumbrances on the property that is to be mortgaged and that there is the full set of documents that prove your ownership of the property.
- The lender’s queries should be answered correctly and within a reasonable time. Delay in response may be understood as disinterest.
- Compare different lenders and their offers to see which offer fits your requirements the most. By utilizing a mortgage calculator online, you can quickly come to a conclusion on the precise EMI to be repaid based on the loan factors. The amount of loan you can avail is only a percentage of the current market value of the property. While no lender offers a loan-to-value of 100%, there is a difference in the percentage of value that different lenders sanction. However, with higher LTV, the interest rate is also generally higher.