How to navigate a home loan for property in mother's name | Fusion - WeRIndia

When it comes to building or renovating a home, most people rely on bank loans to cover the high costs.

While applying for a home loan is usually straightforward, it can be a bit more complicated if the land is registered under your mother’s or grandmother’s name.

In such cases, there are certain procedures to follow to secure the loan successfully.

If you’re planning to renovate an existing house on land owned by your mother or grandmother, you can directly apply for a home renovation loan.

However, if you’re constructing a new house, you will need to explore a home construction loan.

The first step is to ensure that all land documents are accurate. Then visit your bank for further guidance.

In such circumstances, it is essential to include your mother or grandmother as a co-applicant when applying for the loan.

This is necessary because banks require all property co-owners to be included in the loan application. This will simplify the approval process.

Banks require legitimate land documentation before they can approve a loan. If the land is in your mother’s or grandmother’s name, applying for the loan in your name alone might be difficult.

In this scenario, the loan must either be taken in the legal owner’s name or with them included as a co-applicant. This ensures the loan is backed by proper legal assurances.

You might ask why it’s not ideal to apply solely in your mother or grandmother’s name.

The reason is that banks also consider whether the applicant has a reliable source of income to repay the loan.

If your mother or grandmother does not have a steady income, the bank may reject the application.

For this reason, it is important to include yourself as a co-applicant to enhance the chances of loan approval.

Being aware of these steps will help you secure the necessary funds without hurdles when you are building or renovating a house.

Proper documentation and a co-applicant are key to a successful home loan application.

Image by Duttcon Financial Services from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on October 10, 2023

Image Reference: https://pxhere.com/en/photo/1680042