Don’t have sufficient funds and exploring ways to get loans? Faster and easier way to get a loan is against mortgage of assets, be it property or other such resources. This takes place between two people officially known as debtor, owning the property and the creditor, owning the loan.
The process results the debtor getting money by a creditor in the form of loan assuring him to pay back the loan by mortgaging any of his assets. Furthermore, the creditor receives the money in addition to the interest applies over time. If in case the debtor fails to pay what he received, the creditor has a right to take the mortgaged assets in place of the loan given to the debtor.
Types of mortgage
Simple mortgage: As claimed under Transfer of property act, i.e., section 58(b), simple mortgage states that without conveying ownership of the property mortgaged, the debtor mortgages his assets, agreeing on the terms that if according to the contract he would be unable to pay, the creditor will be eligible to sell the mortgaged property.
English mortgage: This is opposite of the case in simple mortgage. Here, the debtor conveys ownership of the mortgaged property to the creditor for getting a loan and a certain date is fixed to repay the same. When the debtor successfully pays the borrowed loan, the property is then transferred back to him by the creditor.
Reverse mortgage: This is a special scheme favorable for elder citizens who have a self occupied house. For them, this acts to be a regular payment from the borrower of the house where instead of paying collectively, he pays the mortgaged amount in installments.
Usufructuary mortgage: Like in simple mortgage, the debtor conveys ownership of the property to the creditor where he becomes eligible to have a hold on benefits received in the form of rent or other resources unless the amount is received.
Process involved
Pre-approval: The loan officer will make sure that the borrower is eligible to mortgage. He would be accepted to submit documents like credit reports, bank statements etc. claiming his eligibility.
Application: Based on the documents submitted, the loan officer will question the borrower to clarify his doubts.
Underwriting: This involves issuing an approval for a mortgage. Here, an underwriter analysis the entire loan package. If any kind of doubt arises in the mind of the underwriter, he is eligible to ask for more documents.
Limits of mortgage
The need for a mortgage may vary and same do the amount requested as a loan, be it 1,000 or mortgages over 800000, this has no limitation. Usually lenders avoid paying large loans to one person due to risk involved in the process. Based on the restrictions set by a lender, he would prefer lending several small loans of a high amount to more than one person, this involves lesser risk. Like in the mortgages over 800000, the lender needs to be confident with the fact that the borrower will be able to pay the mortgaged amount.But we provide you the mortgage which you need without so much effort.
