When it comes to buying property, most homebuyers need to apply for home loan plans for financial support. However, if it’s one thing that borrowers are worried about, it is the lender’s documentation process in order to get a home loan. Now, this process is not necessarily complicated. However, there have been times when borrowers have gotten stuck with it. This is because financial institutions are very careful about verifying their applicants’ documents before approving loan applications. If any document is missing or inaccurate, this could be a problem for the applicant.
When the documents submitted by the applicant include a few mistakes or if a few of them are missing, the entire documentation process can get prolonged. There have been cases where a few borrowers have even got their applications rejected because of documentation problems. All of this can easily be avoided by being aware of the documents required for a home loan.
Therefore, here is a general list of the documents that financial institutions require borrowers to submit for a home loan:
Documents required for proof of identity
- Driving license
- PAN card
- Aadhaar card
- Voter ID
- Passport
Documents required for proof of residency
- Bank passbook
- Utility bills (electricity bill, telephone bill, gas bill, water bill, etc.)
- Post-paid phone bill
- Property tax receipt
- Above-mentioned identity documents that state your permanent address
Documents required for the cost of property
- Sales deed/allotment letter/stamped sale agreement
- Bank account statement of the payment to the builder or seller
- NOC (to be given by the builder)
- Occupancy certificate (in case of a constructed apartment)
- Possession certificate which is issued by the land of the revenue department
- An original land tax receipt
- An estimate of the total cost of construction
Documents that a salaried employee needs to submit
- Documents of all the existing loans along with payment record
- Form 16
- Original bank statements for the past 6 months
- Salary slips for the past 3 months
Documents that a self-employed individual needs to submit
- Memorandum of Association
- SEBI registration certificate
- Import Export Code
- Partnership deed
- Bank statements for the past 6 months
- Account statement including the record of profits and losses
- Balance sheet
- Trade license
- GST registration certificate
- ROC registration certificate
These are the documents required for home loan that you should keep ready. Also, do note that not every lender will have some different requirements when it comes to these documents. Therefore, it is best to speak with your lender and inquire about the documentation requirements before going ahead and applying for the loan.
On this note, it is also important to speak to the lender about your home loan eligibility. This will give you an idea of the loan amount that the lender can offer. By having all these details, you can ensure that the loan process is one without any unnecessary complications.
