Common Mistakes to Avoid while Getting a Mortgage Loan

A mortgage loan is one of the most practical ways to raise large funds without selling your property. Whether you are planning a business expansion, managing medical expenses, funding education, or consolidating high-interest debt, a mortgage loan lets you unlock the value of your property while continuing to own it. But many borrowers underestimate how important proper preparation is, especially when it comes to the documents required for mortgage loan approval.

Incomplete paperwork, missed eligibility checks, or rushed decisions can delay approvals or lead to unfavourable terms. Understanding the most common mistakes borrowers make can help you navigate the mortgage loan process more smoothly and avoid unnecessary stress.

Top 5 common mistakes to avoid while getting a mortgage loan

Applying for a mortgage loan is not just about property value. It involves documentation accuracy, financial planning, and eligibility assessment. Here are the most frequent errors borrowers should avoid:

1.    Not understanding the documents required for mortgage loan

One of the biggest mistakes you can make is underestimating the importance of documentation. Mortgage loans involve detailed verification of identity, income, and property ownership. Missing or outdated documents can slow down legal checks and valuation processes. Preparing all required documents in advance ensures faster approvals and reduces back-and-forth with the lender.

2.    Applying without checking eligibility

Many applicants assume property ownership alone guarantees approval. In reality, eligibility depends on factors such as age, income stability, credit score, and property type. Applying without checking these criteria can lead to rejection and unnecessary credit score impact. Reviewing eligibility beforehand helps you approach the mortgage loan application with clarity and confidence.

3.    Ignoring credit score health

Borrowers often focus only on the property and overlook their credit profile. A low or inconsistent credit score can result in higher interest rates or reduced loan eligibility. Checking your credit report in advance, clearing outstanding dues, and correcting errors can significantly improve mortgage loan terms.

4.    Borrowing more than necessary

Mortgage loans allow access to large sums, which can tempt borrowers to take more than they actually need. Over-borrowing increases EMI pressure and total interest costs over time. It is always advisable to align the loan amount with your actual requirement and long-term repayment comfort.

5.    Choosing a repayment tenure without planning

Selecting the wrong tenure can strain monthly finances or increase overall borrowing costs. Short tenures raise EMIs, while longer tenures increase interest outgo. You should always balance affordability with total cost to ensure the mortgage loan remains manageable throughout its term.

Choosing the right mortgage loan

Avoiding these mistakes becomes easier when you choose a lender that offers transparency, flexibility, and structured guidance. Bajaj Finserv Loan Against Property is designed to simplify the borrowing process while keeping long-term affordability in focus.

Here are the key benefits you get when applying for this loan:

●      High loan amounts up to Rs. 10.50 crore*, based on property value

●      Competitive interest rates that help keep EMIs affordable

●      Convenient repayment tenures of up to 15 years*

●      Multiple loan variants to suit different borrower profiles

●      Simple digital application and clear cost disclosure

Here’s the basic eligibility criteria:

●       Nationality: You must be an Indian citizen residing in India with property in a city we operate in.

●       Age: Minimum age: 21 years (18 years for non-financial property owners)

●       Maximum age: 85 years (including non-financial property owners)

●       *Age of the individual applicant/ co-applicant at the time of loan maturity.

●       *Higher age of co-applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and to be taken as co-applicant on loan structure.

●       CIBIL Score: A CIBIL Score of 700 or higher is ideal to get an approved loan against property.

●       Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.

Documents required for a mortgage loan:

●       Proof of identity/ residence – Aadhaar/ passport/ voter’s ID/ driving license/ letter from NPR/ NREGA job card

●       Proof of income

●       Property-related documents

●       Proof of business (for self-employed applicants), and

●       Account statements for the last 6 months

With a streamlined application process and digital tracking, Bajaj Finance helps borrowers manage their mortgage loan journey with minimal friction.

Conclusion

A mortgage loan can be a powerful financial solution when approached with preparation and clarity. Understanding the documents required for a mortgage loan, checking eligibility in advance, and planning repayment carefully can prevent delays and reduce borrowing costs. By avoiding common mistakes and choosing a trusted lender like Bajaj Finance, you can unlock your property’s value confidently while maintaining long-term financial stability!