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Documents Required for a Home Loan Application

08 Sep 2016


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Documents Required for a Home Loan ApplicationApplying for a home loan is an intimidating, long process – it’s always best to be well-prepared with the required documents to speed up the process. Here’s a look at the basic paperwork that you need to prepare for:

 

Home loan application form

The most important document for a home loan is the application form. If there is more than one applicant for the home loan, the details of the co-applicant must also be furnished. Also, the processing fees need to be paid along with the home loan application. Since this fee is usually non-refundable, it is advisable to avoid making applications to multiple lenders.

 

Identity and address proofs of the borrower

To confirm your identity, lenders look for documents such as your PAN card, valid passport, Aadhar card, driving licence, identity card issued by any Government department, identity card of your employer or voter identity card.

 

For address proof, the documents that are required are Aadhar card, voter identity card, a valid passport, driving licence, utility bills and recent bank statements with your address on it.

 

Income documents

Your home loan eligibility is established on the basis of your income.

 

   - If you are a salaried person, lenders usually ask for the Form No 16 and/or a copy of your income tax return with computation of the total income. Additionally, the lender may also ask for your latest salary slips to ensure that you’re still working with the same company.

   - If you’re self-employed, lenders usually demand last three years’ income tax returns with computation of total income. The bank may also ask for copies of audited profit and loss statements, and balance sheets for last 3 years. If the accounts are not audited, you may have to get these documents certified by a chartered accountant. You may also require to present a proof of your educational qualification.

   - In both cases (salaried and self-employed), the lender will demand copies of the bank statements of your salary account or the account where your business transactions take place in order to verify the authenticity of your income.

 

Documents pertaining to the property

Ideally, the loan application should be made before you identify a property. This will help you sort out any issue relating to eligibility, whether it is regarding the amount of home loan, or any incorrect information related to your credit score or credit history.

 

If you’ve already identified the property that you want to purchase, you’ll need to submit the documents relating to the property:

 

1. Resale Property

If it’s a resale property, you’ll have to provide the copies and originals of all the documents regarding the property, i.e. from the first buyer till your current seller. This will help the lender know that the property is not mortgaged. If the property is in a cooperative society, you may have to furnish a no-objection certificate from the society.

 

2. New Property

If you’re buying the property from a developer, you must provide documents that establish the clearances obtained from the local authorities, the approved building plan, documents about ownership of the land, legal opinion about title of the land and more.

 

Go through this list before applying for a home loan and it should make the process a little less intimidating for you!

 

Authored by Goel Ganga Developments, one of the top real estate builders and developers in Pune

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