A lender prior to providing you with the desired money as mortgage will ensure that the collateral is enough to cover the lending risk he would take by providing you the money.

A mortgage is a financial instrument which has the capability of taking care of your financial requirements when you agree to deposit with him any collateral either in the form of land, house or your business. The mortgage offered to you by the lender will be equivalent to the worth of the collateral deposited by you to him.

It is of paramount importance to the lender to ensure that the property or business that you wish to surrender as collateral is worth the value for which the mortgage loan is desired by you. if you wish to surrender your business as collateral then the lender will ensure that the business is in sound working order. Whenever you approach a lender the lender will require you to meet certain criteria before he decides to lend you the money in the form of a mortgage. He will ensure that your financials are in sound order and therefore will verify whether you are capable of repaying the mortgage or not. Secondly, as mentioned, he will ensure that the collateral deposited by you either in the form of property or your business is enough to cover the amount sought by you as mortgage.

It would be a wise step of not over estimating the value of your property and telling it to the lender as it is highly likely that the lender will in any case appoint a surveyor to check the property and its actual worth.

If you wish to avail a mortgage against your property then the lender might ask you to furnish details regarding the following mentioned details.

1. The title/deed papers of the property
2. Documents verifying the value of the property
3. Your personal financial and banking details
4. Documents supporting your source of income

On the other hand if you desire to take the mortgage against your business then the following criteria’s will be expected to be met by you:

1. Business bank account statements for a period of at least the last six months.
2. A profit and loss forecast being prepared by your business for the next due twelve months.
3. the current performance of your business establishment in the industry.
4. The audited account details of your business for a period of the last two years.
5. The asset and liability statement will also be desired to be sufficed by you and also by your partners as the case may be.
6. The details and profiles of you along with your partners in the business and the directors and related senior management.
7. A complete detailed business plan that will be expected to reveal in detail as to how you expect your business establishment to ensure you a constant cash flow.
8. Your proposed plan and steps towards repayment of the loan sought by you in the form of the mortgage.

These requirements are not stringent and every lender allows slight variations according to his needs and desires. Once the lender is satisfied with the genuineness of the worth and possession of the collateral which you wish to deposit then the lender decides to offer you the desired money in the form of mortgage.