One of the biggest obstacles is the financial records of the land or the house, which is actually the basis of the assessment of the mortgage application. First, obtaining documents from the revenue service is an arduous and time-consuming. The drafting of these documents, most of the time, was deemed inappropriate in the context of the ownership structure of the property (land or house). Then what is the quantum of finance that triggers a controversy between the bank and the applicant. Often we see the applicant dissatisfied with the amount of funding and complain of underfunding. Before arriving at the quantum of financing, the bank assesses the applicant’s repayment ability. The repayment capacity is analyzed on the basis of such factors as the applicant’s net monthly income, unpaid loans, financial history, history of repayment, continuity of employment or the existing business, the total number years of employment and the nature of the job. And of course, the CIBIL score of candidates will be considered in evaluating your financial situation.
The value of the property (in case you are looking for a loan for the purchase of a built house) or an estimate (in case of loan for the construction of a house) indicating the costs of carrying out the different stages of the construction are also related to the amount of funding. The banks have their own way to evaluate a property because they have their own chartered appraisers who attribute a value to the property according to their established parameters.