Getting a Home Loan is one of the easiest and most sought ways to fulfil your dream of owning a home. It is always special to possess a place you can call your own, and a Home Loan is an essential step to make it happen.
To get a Home Loan, you must clearly understand the necessary information and aspects of the loan procedure. Knowing about the required documents for a Home Loan will keep you prepared and speed up the loan approval process.
With that in mind, the list of essential documents required for a Home Loan, along with some other necessary information, is mentioned below:
What Are the Eligibility Criteria or Parameters to Get a Home Loan?
To get a Home Loan, your age must be between 18 to 70 years, and a credit score on the higher side (750+) is preferable. You need to have a stable source of income as a salaried employee, self-employed professional, or self-employed non-professional.
How Much Home Loan Can I Get?
The bank or lenders generally calculate and decide the loan amount. However, the amount usually is supposed to be fifty or sixty times the monthly income of the loan seeker. For example, if your gross monthly salary is Rs 50,000, and you get 40,000 in hand after all the deductions, your loan amount will be around Rs 24 lakh.
What is the Role of a Guarantor in Getting a Home Loan?
If you are willing to get a high Home Loan, the bank or lender might want you to assign a loan guarantor for assured repayment.
A guarantor guarantees to repay the loan if the borrower fails to repay the amount. When the primary borrower defaults.
Overall Documents Required for Getting a Home Loan
These are the initial documents you would be needed to produce while applying for a Home Loan:
- Duly filled loan application form
- Three passport-sized photographs
- Document as proof of Identity
- Document as proof of Residence
- Bank statements for the last six months
- Signature verification of the applicant, done by bankers
- Detailed property documents
- Documents related to personal assets and liabilities
- Original copy of the salary certificate issued by the employer (for salaried individuals)
- Past two years’ Form 16/IT return documents (for salaried individuals)
- Assessment order copies of the past three years (for self-employed professionals and self-employed business people)
- Challans supporting advance income tax payment (for self-employed professionals and self-employed businessmen)
- Documents as proof of business address (for self-employed professionals and Self-employed businessmen)
The list mentioned above of documents for a Home Loan is required by almost every bank and lender for approving a Home Loan application or request.
Kyc Documents Needed for Home Loan Approval
Know Your Customer (KYC) documents are the primary and essential documents required for getting all kinds of loans, including a Home Loan. The following are the documents required for KYC:
- Proof of Identity with photograph (any one of these)
- PAN card
- Voters ID card
- Driving Licence
- Proof of Residence (any one of these)
- Ration card
- Employment letter
- Copy of passbook or bank statement with address
- Electricity or telephone bill
- Proof of age (any one of these)
- Birth certificate
- PAN card
- Class 10th mark sheet
- Bank passbook
- Driving licence
Documents Required From the Loan Guarantor
Let’s say you have a loan guarantor for getting a Home Loan. In that case, the guarantor also needs to submit the essential documents mentioned to successfully complete the loan approval.
- Proof of Identity
- Proof of Residence
- Proof of business address
- Personal assets and liabilities statement
- A couple of passport-sized photographs
- Document supporting the identification of signatures from present bankers
Property Documents Required for Loan Approval
While applying for a Home Loan, you must also submit documents related to the house or property, stating crucial information the bank or lender needs to know while rendering the loan.
The following property documents are required to be submitted for a Home Loan:
- Sale agreement or share certificate (for properties in a cooperative society)
- Certificate of possession and receipt of taxes for building and land.
- Certified sketch of the location of the property obtained from the revenue authorities
- Property or house allotment letter given by builder, housing board, or the society.
- Receipts of advance payments made for purchasing the house
- Permission letter issued by concerned or designated authorities
- Copy of building plan and floor plan approved by the concerned authority
- Original copy of No-Objection Certificate (NOC) provided under the ULC Act, 1976
- Relative order copy if agricultural land is being converted
- NOC issued by the builder or the housing society
- A detailed blueprint of construction cost
- A declaration statement submitted by the borrower mentioning the stipulated date by which the house will be entirely constructed
- Report of a lawyer in a standard format
- Upon the closure of the loan, documents needed for handing over the original property documents
- Power of attorney for receiving the original documents of the property
- Letter requesting the rights to the nominee or legal heirs for handing over the original copies of the property in case of the demise of the borrower
Having the relevant documents that are applicable and necessary in your case would help you get your Home Loan approved conveniently without any hindrances. You need to enquire with your personal banker or banking assistant to know which of the above documents you would need immediately to speed up your loan approval process and what documents would be required later or the bank so that you can get them prepared accordingly.
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