The mortgage loan application process can be long and arduous, especially if you’re new. However, by taking the right steps and being fully prepared with documents, you can make sure your application process completes smoothly, and you’re able to get quick money with less hassle.

What documents are needed for a land mortgage loan? Let us discuss the documents you will need to have ready for successfully applying for a land mortgage loan. With these documents ready, applying and getting approval for your loan can be a quick process.

4 Important Documents Your Lender Asks For During Mortgage Loan Process

To speed up the land mortgage loan application process and get the best deals on LAP loan interest rates, applicants should provide the lender with the following documents:

1. Proof of Income

To qualify for a land mortgage loan, you’ll need to provide proof of income. This might come in two forms:

● If you’re currently employed, you might be able to prove income with pay stubs from your employer

● If you’re self-employed, it might be necessary to provide tax documents and receipts from business-related expenses

Proof of savings or assets may also be required. It is a fact that LAP loan interest rate is less for those applicants whose income proof shows repayment capability.

2. Legal Documents

In addition to all of your personal papers, you’ll need official documents to use as collateral on loan. It includes things like property titles and deeds and other financial statements.

Banks will also check copies of any bank statements or other documentation showing your ability to repay the land mortgage loan.

3. Personal Information

All personal information is required as part of our underwriting process.

When we talk about your personal information, we refer to your name, current and previous addresses, employment information, bank statements and tax returns.

4. Employment History/Statements

Employment history is key to verifying your income and monthly expenses, which are used in underwriting your loan. Be sure to include at least two years of employment history from each employer. If you’re self-employed, you will need to submit tax returns, business plans and bank statements.

You will also need to verify that you own or have the right to use all property being used as collateral. This includes providing proof of ownership.

Basic Documents For Salaried And Self Employed Individuals

● Salaried Individuals

The lenders will ask salaried individuals to provide the following documents:

● Last three months’ bank account statements

● Latest salary slips

● Form 60/Pan card of the applicant

● Address and identity proof

● Mortgaged property legal documents

● Income tax return copies

● Self-Employed Individuals

Self-employed individuals have to show different documents to the lender:

● Last six months’ statements of the primary bank account

● Form 60/Pan card

● Financial documents like ITR return copies

● Address and identity proof

● Collateral land documents

Eligibility Criteria To Get Approval For Land Mortgage Loan

A LAP loan is best to get quick money with no hassle for business expansion or arrange marriage funds by utilising the existing property. However, the applicants have to fulfil the following eligibility criteria first:

Salaried Applicants

● The age of the salaried applicants should be 23 to 58 years

● Applicants should be an Indian citizen

● Should have a property in India’s urban cities

● Working in MNC, public sector or private sector company

Self-Employed Applicants

● The age of self-employed applicants is between 28 to 70 years

● The applicant should be an Indian citizen

● Should have a stable income source or business

● Must possess a property in their name in India’s urban cities

Tenor and Loan Amount Eligibility

● Salaried Applicants: The salaried individuals will get the loan amount for a tenor of 2 to 20 years with a loan eligibility amount of up to 80% of their property’s current market value.

● Self-Employed Applicants: The loan eligibility amount remains the same as a salaried individual, and the tenor they will get is up to 15 to 20 years.

Summing Up

Getting approval for a land mortgage loan is a time-consuming process, and an individual has to wait for at least 30 days. However, with proper documentation, you can get approval for the application quickly. Also, you may get the best offer on the LAP loan interest rate. It’s advisable to keep all the important documents like credit history, bank statement, and property documents handy before going to the mortgage lender.