How the Pre-Approval Process of Loan Against Property Works?
Getting a loan against the property is probably the easiest lending process to rely on, provided you are in quick need of money. However, even mortgage loans are subject to pre-approved offers, provided you fulfil each one of the many criteria involved in the process. For starters, banks and NBFCs usually send out select pre-approved offers of particular value to certain users, mainly the ones with the cleanest possible credit histories. While a majority of these offers concern credit cards, personal loans, and other conventional financing solutions, pre-approval for a loan against property isn’t common.
More about Mortgage Pre-Approval Process
In case you want to apply for a loan against property, pre-approval is often subject to the discretion of the lender. Then again, if you are already associated with a certain financial institution, have made similar inquiries in the past, and have a reliable credit history to show for, you can still expect pre-approved loan offers, even on mortgages.
Pre-approval Process for Loan against Property
The basic premise, however, still concerns connecting individually with the lender and getting hold of the pre-approval letter. Therefore, in case you are willing to go for the mortgage or put a property lien of sorts, the financial institution holds all the aces, in terms of approval. However, if a pre-approval is sought and sanctioned, you can expect a lower loan against property interest rate.
The process, however, requires you to submit proof of assets in the first place. Once the bank or NBFC takes a closer look at the property-centric assets, existing mortgages, if any, current state, and the condition of the property. However, having a sizable property isn’t enough to get your pre-approved as you aren’t planning to sell the same for the money but expected to repay the loan as easy instalments.
Therefore, the existing age, financial well-being, and current state of employment are also necessary for pre-approval. A majority of banks or NBFCs offer mortgage loans by precisely checking every aspect of an applicant’s financial standing. These include current salary slips, bank statements, and certainly the title documents concerning the mentioned property.
Other Requirements for Pre-Approval
Provided you want to apply for loan against property but seeking pre-approval that eventually guarantees decent valuation, you must keep certain documents handy. While the approval process is often more descriptive and requires duly filled forms, photographs, and residence proof, getting preapproval is less paper-intensive.
Financial institutions can easily procure your credit standing and once you submit the employment proof and the property details for them to evaluate, pre-approval becomes a mere formality. However, a good or rather excellent credit score is necessary for getting seamless pre-approval for mortgage loans.
Loan against property interest rates are lower than those for personal loans. Therefore, if you have some property for the banks to put a lien on, it is advisable to opt for the same for getting a fresh credit line, provided you are confident of paying the amount bank. This is where the pre-approval letter from the financial institutions comes in handy as it showcases the faith they have on your repayment abilities.