Mortgage Explained: How It Works, What You Need, and Where to Start

When you buy a home or commercial property without paying all the money at once, you’re using a mortgage, a loan secured by real estate that you repay over time with interest. Also known as a home loan, it’s the most common way people in India and around the world become property owners. Without a mortgage, buying a house or office space would be out of reach for most people. Lenders don’t just hand out money—they check your credit history, income, and how much you can put down upfront. A low credit score can mean higher rates or even a denied application. And while some think you need 20% down, many programs let you start with as little as 5% or even less, depending on your situation.

A credit score, a three-digit number that shows how reliably you’ve paid back debt in the past is one of the biggest factors in getting approved. If your score is below 650, options shrink fast. Lenders also look at your debt-to-income ratio—how much you owe each month compared to what you earn. If you’re juggling student loans, car payments, or credit card debt, that matters. Your down payment, the upfront cash you pay toward the property price before the loan kicks in is another key piece. The more you pay upfront, the lower your monthly payments and the better your loan terms. But saving 20% isn’t always required. Some government-backed programs and private lenders offer lower down payment options, especially for first-time buyers.

It’s not just about getting approved—it’s about choosing the right mortgage. Fixed-rate loans keep your payment the same for 15 or 30 years. Adjustable-rate loans start lower but can go up over time. Commercial mortgages work differently than residential ones—they focus more on the property’s income potential than your personal income. That’s why buying a rental building or office space often requires stronger financial proof than buying your first home. And while some people think mortgages are only for homes, they’re also used for shops, warehouses, and even land meant for development.

You’ll find real stories below about what lenders actually require, how credit scores affect your chances, and what happens when you try to buy commercial property with a lower score. There are guides on renting while your landlord sells, how to rent out your own house, and even how to calculate if a property makes sense as an investment. You won’t find fluff here—just what works, what doesn’t, and what you need to know before signing anything.