The process of mortgage lending begins with the would-be borrower applying for a loan from one or more mortgage lenders. The application process can be initiated either through online mode, via the portal or lenders app, or by visiting the branch office. This involves submitting basic information about the borrower’s identity and income along with the property details. On receipt of the application, the lender first runs a hygiene check on the borrower’s past repayment track through credit bureaus and also verifies the basic eligibility of loan amount based on the information declared by the borrower.
The mortgage calculator is available for the borrower to get a quick view of the loan amount eligible to him, his periodic repayment amount, and the overall cost of borrowing based on which he can decide on the loan amount and which property to go for.
In various cases, the pre-approval for loan eligibility based on the income is obtained by the borrower after which he finalizes the property to be bought.
Once the first level of scrutiny is completed (or a pre-approved offer is released), an extensive underwriting process takes place at the lender’s end. This includes an evaluation of the property through third-party experts, and financial analysis of the borrower based on income, assets, and liabilities. Once the due diligence is complete, the loan is sanctioned and proceeds to the documentation stage where the borrower signs security documents in favor of the lender. Afterwards, the loan is disbursed according to the contract terms.