Looking to secure a home loan with the lowest interest rates? The first step is to gather the necessary documents to expedite the approval process. We’ve compiled a comprehensive home loan documents list that can help you sail through the application swiftly. From identification proofs to income statements and property documents, we’ve got you covered. By ensuring you have all the required paperwork in order, you’ll be one step closer to unlocking the doors to your dream home. So, let’s dive into the essential documents you need for a seamless home loan approval journey.
Read on to explore the prerequisites of applying for a home loan along with details of the documents required for home loan approval.
Pre-requisites of Applying for a Home Loan
A home loan is a smart and effective way to get monetary assistance while buying a house. In this regard, you might need to take care of a few important factors. Here is what you must ensure:
Keep Your Credit Score in Check
Your credit rating, a 3-digit number, holds significant weight when it comes to loan applications. Different organisations have varying requirements for a credit rating. However, it is essential to maintain a rating of 650-700 plus to benefit from the lowest interest charges and easy loan approval.
Before you apply for a home loan, ensure that you settle your other financial liabilities, avoid missing any EMI or payment, and keep your financial health in check. By doing so, you can increase your chances of securing a home loan with favourable terms and conditions. Take control of your financial well-being before embarking on the journey towards homeownership.
Income and Employment Status
Income and occupation are crucial factors for approval. Lenders assess your repayment capacity through it. Home loans are typically spread over 20-30 years, and the monthly EMI relies on the loan amount, interest rate, and tenure.
Eligibility Criteria
Use an eligibility calculator to determine your eligibility for a home loan. It considers your present income, loan tenure, interest payable, and existing EMIs for other loans. Additional factors assessed include financial obligations, credit history, credit score, and overall financial standing. The eligibility calculation reveals the potential amount you can secure as a home loan.
Documentation
Ensure all essential documents are prepared before submitting them to the lender to secure a home loan. Missing or unavailable documents may result in application cancellation. To expedite and facilitate loan approval, it is advisable to compile a comprehensive home loan documents list and organise your file accordingly. Let’s delve into the detailed document requirements below.
Documents That You Need to Get Home Loan Approval
Here, we shall try to provide a detailed document list that is required when you apply for a home loan. It is:
- Property-Related Documents
- You need to provide the sale deed or stamped agreement for the sale or allotment letter
- NOC from the builder
- Possession Certificate and Land Tax Receipt
- Papers showing total construction cost estimates
- Bank account statement or payment receipt for payment made to the builder or seller
- Occupancy certificate for constructed apartment
- Permission letter from the proper authority
- Approved building plan
- Certificate of Non-Encumbrance (for the last 12 to 30 years)
- General Power of Attorney
- Identity Proof – Passport, Aadhar, Pan, Voter Id, Driving License (Anyone)
Address Proof – Electricity Bill, Telephone Bill, Water Tax bill, Property Tax Receipt, Telephone Bill, Pre Paid Mobile Bill (Any One)
- Passport Sized Photograph
- Educational Qualification Proof
- Signature Proof – Pan Card or Passport
- Relationship Proof
- Proof of Income –
| Salaried Individual | Self-Employed Professionals | Self-Employed Businessman |
| with Form 16/IT Return for the last two years is required as Income Proof
|
Proof of business address for non-salaried individuals | IT returns/Assessment Orders copies of the last 3 years |
| Last three months’ salary slip from the employer | Advance Income Tax Payment Challan | Advance Income Tax Payment Challan |
| Certified Letter From the Employer | License of Professional Practice | Balance Sheet |
| Past three Years IT Returns
|
Company’s Statement about Profit and Loss | |
| Letter Indicating Promotion or Increment | Details pertaining to Business License | |
| Investment Proofs | Registration Certificate of Establishment | |
| Proof of Business Address |
Additional Documents Needed For NRIs
- Copy of Visa
- Salary Certificate or Income Statement duly attested by Out Foreign Office
- Copy of Employment Contract
- ID Card
- Last 6 months Overseas Bank Account Statement
- NRE Bank A/s passbook
Mentioned above is a detailed list of home loan documents that are required for loan approval. There are numerous banks and financial institutions that offer home loans. You need to compare the interest rates they are charging on the home loan and settle for the bank offering the lowest home loan rates.
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