The festival season is here! It’s a time to celebrate, enjoy, and soak in the festive spirit. It’s also a time when we tend to spend a little more than what we usually do. The reason behind this is simple – we love to share and spread happiness with our loved ones. And nothing says happiness better than exchanging gifts, organizing parties, and going on holidays. However, this surge in expenses can sometimes be a challenge to manage. And this is where taking a mortgage loan comes into the picture.
Mortgage loan are an excellent option to finance your festival season expenses. They help you access a large amount of money that you can repay over an extended period in easy installments. However, like any other financial product, mortgage loans require careful consideration. Here we have compiled a list of things that you must consider before taking a mortgage loan for the festival season.
Understanding the Mortgage Loan Process
The first and foremost thing you need to do before taking a mortgage loan is to understand the loan process. The loan process is a series of steps that you need to follow before the loan amount gets credited to your account. The process typically includes the following stages:
Application:
This is the first step where you submit your loan application to the lender. The application consists of your personal details, income details, and employment details.
Document verification:
Once you submit your loan application, the lender will verify the documents you have submitted. This is done to ensure that you are eligible for the loan.
Property valuation:
If you are taking a mortgage loan, the lender will value the property to ascertain its worth. This is done to ensure that the property can be used as collateral if you fail to repay the loan.
Loan approval:
Once the verification and property valuation is done, the lender will approve your loan. This is usually done within a few days, depending on the lender’s process.
Loan disbursal:
After the loan is approved, the loan amount will be credited to your account.
Knowing the Mortgage Loan Calculator
Before taking a mortgage loan, it is essential to know your loan amount and EMI. This can be done using a mortgage loan calculator. A mortgage loan calculator is a tool that helps you calculate the loan amount and EMI based on your income, loan tenure, and interest rate. The tool takes into account the loan amount, tenure, and interest rate to calculate the EMI. You can use a mortgage loan calculator online or offline to determine your loan amount and EMI.
Preparing the Mortgage Loan Documents
Before applying for a mortgage loan, it is crucial to prepare the necessary documents. These documents include your identity proof, address proof, income proof, and employment proof. The documents vary depending on the lender’s requirements. Generally, the following documents are required to apply for a mortgage loan:
> Identity proof – Aadhar Card, Passport or PAN card.
> Address proof – Utility bills or rental agreement.
> Income proof – Salary slips, bank statements, or income tax returns.
> Employment proof – Appointment letter or experience certificate
Ensuring a Affordable Mortgage Loan Interest Rate
When it comes to mortgage loans, the interest rate plays a critical role. The interest rate determines the amount of money you will pay to the lender over and above the loan amount. Therefore, it is crucial to ensure that you get a competitive mortgage loan interest rate. A competitive mortgage loan interest rate can help you save a considerable amount of money in the long run. Factors that influence the interest rate include your credit score, income, and loan amount.
Choosing between Fixed and Floating Mortgage Loan Interest Rates
Mortgage loans are available in two types of interest rates – fixed and floating. A fixed interest rate is when the interest rate remains the same throughout the loan tenure. A floating interest rate is when the interest rate keeps changing based on market conditions. Choosing between fixed and floating interest rates depends on your preference and financial goals. If you want a predictable EMI throughout the loan tenure, then a fixed interest rate is a better option. If you are okay with the EMI fluctuating, then a floating interest rate can be a good choice.
Ensuring Verification of the Property
If you’re taking a mortgage loan, it’s essential to have the property verified by a legal expert. This can help you avoid legal issues in the future. The expert will check the property documents, ownership, and other related aspects to ensure that you get a clear title to the property. Additionally, they will check if there are any legal disputes related to the property. This can help you make an informed decision about buying the property.
Checking the Lender’s Reputation
Before taking a mortgage loan, it is essential to check the lender’s reputation. This can help you avoid fraud and get a fair deal. You can check the lender’s reputation by reading online reviews, checking with the regulatory authorities and asking for recommendations from friends and family. A well-reputed lender can offer you better loan terms and a hassle-free loan disbursal process.
Conclusion
The festival season is a time to spend time with our loved ones, share gifts, and make memories. And taking a mortgage loan can help you finance these expenses with ease. However, before taking a mortgage loan, it is essential to consider the loan process, calculate the loan amount and EMI using a mortgage loan calculator, prepare the necessary documents, ensure a competitive interest rate, choose between fixed and floating interest rates, have the property verified, and check the lender’s reputation. By doing so, you can ensure that you get the best deal and avoid any financial pitfalls in the future. Happy festivities!