Applying For a Home Loan? Well First Know About These Documents That Every Top Bank In India Requires!
When it comes to home loans, the documentation process has always been a topic of discussion among borrowers. This is because; while this process should be smooth sailing, there have been a few borrowers who have struggled with it. The reason for this is that financial institutions have to complete the verification of their applicants’ documents to ensure that everything is in place before providing them with a home loan. This problem with the documentation process arises when the borrower has not submitted their documents as required by their lender.
If there is a mistake with a particular document or a few of them are missing, the process can take much longer than necessary. In some cases, there have been applications that have been rejected because of inaccurate documentation. Now, all this can be avoided by simply checking with the lender about their documentation requirements.
So, let’s take a look at a general list of documents required for home loan that most financial institutions require:
Documents needed for residency proof
- Property tax receipt
- Bank passbook
- Post-paid phone bill
- Utility bills (telephone bill, electricity bill, water bill, gas bill, etc.)
- Identity documents that include your permanent address (driving license, Aadhaar card, passport, voter ID)
Documents needed for identity proof
- PAN card
- Driving license
- Aadhaar card
- Passport
- Voter ID
Documents needed for the property cost
- Estimate of the total construction cost
- Allotment letter/sales deed/stamped sale agreement
- Possession certificate issued by the land of the revenue department as well as the original land tax receipt
- Bank account statement of the payment made to the seller or builder
- Occupancy certificate (for constructed apartments)
- NOC given by the builder
Documents needed if you are a self-employed individual
- Import Export Code
- SEBI registration certificate
- Partnership deed
- Memorandum of Association
- Bank statements (past 6 months)
- Balance sheet
- Account statement that accounts for profits and losses
- ROC registration certificate
- GST registration certificate
- Trade license
Documents needed if you are a salaried employee
- Salary slips for proof of income (past 3 months)
- Documents of all existing loans along with track record of payment
- Original bank statements (past 6 months)
- Form 16 for proof of income
Therefore, this is a list of documents that you should keep ready while applying for a home loan. Now, do keep in mind that not every lender will have the exact same documentation requirements. This is why it is best to speak with a lender about their specific requirements. In addition, you should also be aware of their home loan eligibility criteria to know the loan amount that you can get from them. Having all the information beforehand will ensure that the entire process of getting the loan will be a smooth one, thus avoiding any unnecessary complications.
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