What is Mortgage Loan?
A mortgage loan is a loan you take while using your home or any other piece of property as collateral. It is usually taken to buy a home or property while guaranteed by the same property. The lender keeps the asset as collateral until the borrower pays back the net loan amount.
Who Can Apply For Mortgage Loans?
Mortgage loan eligibility is usually determined according to the repayment potential of the borrower. As a borrower, you’ll need to provide some basic financial information, such as debt, income, and assets. As the analysis is done by the experts, the approval and applicable mortgage are decided.
Major Eligibility Criteria for Mortgage Loans
Sound financial track record
Optimal credit rating
Reasonable debt-to-income ratio
You need to be reasonable about what you can and can’t afford while going for mortgage loans, it's important to avoid defaulting and facing possible repossession and foreclosure.