You have been looking for the perfect home for months now, haven’t you? Now that you have finally reached the property that has been finalized, the procedural complications begin. Since you are buying a new property, considering the exorbitant property rates, you may be looking for a home loan. An article in the Economic Times (June 2018) stated that home loan growth was expected to be 17-18%. Before going to the banks, go through the documents required for home loan that will make your process easier. Most banks more or less require the same home loan document list.
Here is a list of documents required for a home loan.
1. Loan Application Form – This is the most crucial home loan document required. Filling out the loan application form clearly and correctly is most important. This document will be used as a reference point to verify all your other documents. Details like Address, contact details, and email id are extremely crucial since all your correspondence for the coming years will be based on these details.
2. Proof of identity – This is a crucial document required for a home loan. You can choose from the below-mentioned list of documents that can be shown as proof of identity
– PAN Card
– Driving License
– Aadhaar Card
– Voter’s ID Card
3. Photographs – You may require your passport size several times through the process of registration stamp duty etc. A passport size photo is also an important document needed for a home loan. Ensure you provide the most recent photos and keep sufficient copies ready for all the procedures.
4. Proof of Residence – You need to show proof of where you have been residing as a part of the documents required for a home loan. The list of documents that are applicable as proof of residence are as follows
– Voter’s ID
– Ration Card
– Voter’s ID
– LIC Policy Receipt
– Bank Passbook
– Utility bills (this could include Telephone Bill,
Electricity Bill, Water Bill, Gas Bill that is transferred
to your name.)
– Letter from a recognized public authority verifying the
5. Proof of Income documents – It’s most likely that your loan approval will depend on the income of the parties involved. This is to ensure your eligibility to repay the loan amount on a regular basis. This can be further sub-divided
A. For Salaried Employees
– Payslips for the past few months (3 months)
– A letter from the employer
– Promotion letters
– Duly filed IT returns of the past 3 years
– Form 16 of the past 3 years
– Proof of investments, shares, etc would also need to be furnished
B. For Business owners
– Profit/Loss statement that needs to be attested by the CA
– Business License details
– The license of practice – in case of lawyers or Doctors
– Proof of Business Address
– Income tax returns of 3past years
– Registration of the establishment.
– Valid property documents
6. Property documents – Property documents are among the most crucial of the home loan documents. Property documents verify the authenticity of the property. It verifies the property as legit and therefore the bank authorities will usually double-check the property documents stringently. The document required for home loan application is as follows
– Estimates for the house construction from legit sources
– NOC from Society/Builder
– Register documents for sale of the deed
– Stamped agreement of sale, this needs to be furnished by the builder
– Building Occupancy certificate
– Property tax receipts
– Electricity bills of the property
– Maintenance bills
– Building plan details (this must include the floor plan, key plan, etc)
– Original copies of the tax paid receipt, certificate of possession provided by the revenue authority.
– Proof of advance payments that have been made towards the property.
– Receipt of the payment via bank account statements that depict the payment made towards the builder.
Your credit score, previous income to debt ratio and your practice of repaying debts are factors that come into consideration when you are applying for a home loan. A clean credit score or a good repaying track road works in favor of those who are applying for a fresh loan.
Before applying for a home loan, make sure you are prepared with the documents required for a home loan. If you have any issue in the documents, ensure that you pre-rectify those. This will help you sail through an easy process of getting accepted for a home loan. Our consolidated list of documents you need when applying for home loan
Are standard across all banks that you may reach out to. Keep this checklist handy when you plan on applying for a loan.