Here are some of the points that will determine your mortgage amount:
Usually, builders require buyers to pay 10-20% of the value of the property as a down payment. The remainder 80-90 percent can be financed by the bank. You can choose to pay more out of pocket if you can afford it. You must save for the down payment before finalizing a property. In the event of a deficit, you may have taken out a subsidized loan from your employer, family and friends. Try to minimize the amount of the loan to reduce the interest expense.
2. Your eligibility
Real estate lenders have a list of eligibility criteria and only if you meet them are you considered a potential borrower. Banks typically look at your credit history to understand your repayment habits and prefer a credit score of 750 for loans. Your age, income, occupation, guarantee, margin requirements, etc. are also important factors when it comes to determining the loan interest.
3. Your affordability to pay for IMEs
Often times, buyers take on a lot of burdens when it comes to paying EMI, believing it will get easier over time as their income will eventually increase. Consider the possibilities of not getting a raise soon or other unforeseen circumstances. You should consider a loan-to-income ratio of 20-30%. You can change the mandate to reduce or increase the amount of the IME according to your financial capacity.