What is mortgage and loan process?

Question

Accepted Answer

Mortgage and loan process involves applying for a loan, submitting required documents, and approval or rejection of the loan.

The borrower applies for a loan with a lender.
The lender evaluates the borrower's creditworthiness and ability to repay the loan.
The borrower submits required documents such as income proof, credit report, and property details.
The lender reviews the documents and decides whether to approve or reject the loan.
If approved, the borrower signs the loan agreement and receives the funds.
The borrower repays the loan in installments over a period of time.
In case of a mortgage, the property is used as collateral for the loan.
The lender may foreclose on the property if the borrower defaults on the loan.

Popular interview questions of Banking Operations