Mortgage Loan – Things to Know
Mortgage loans are given upon a collateral security. You need to keep a property as surety in order to avail this loan. Once you repay the loan, your property will be free from the holds of the lender. This type of loans is given by the government and private financial institutions alike. Even private lenders can advance such loans.
If you are on the look out for a loan, then you just have to follow and fulfill the requirements.
• Lender will advance only 65 percent of the total value of the mortgaged property. Do not expect more than this value. And if your building is lying vacantly at the time of mortgage, then the value of the loan reduces to 60 percent. And a land mortgage can not expect more than 50 per cent.
• If you want to gain complete confidence of the lender and be sure that he will give you the money, then you need to have some amount of cash investment in the prospective project. They do not advance any amount of loan if the loan seeker has not invested his money in the project.
• They also look into the ability of your financial status to pay back the loan. One thing that you have to learn is that these loans are private so if you do not have a way of paying it back immediately, then you may face the problem of losing your mortgaged property.
• You need to have a good business background in order to get the mortgage loan soon. People today tend to work only with good businessmen so you can not expect them to give a loan to a non-hard working person; though they have the latter’s property in hand.
Therefore, keep the above points in mind in order to get your mortgage loan easily.