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Checklist of Documents Required for a Home Loan

This article will inform you about the documents required for a home loan, as well as how they can help with the application process and determine your eligibility.

  • Published: March 23, 2022 12:34 PM IST
Home Loans

Are you intending to purchase a new home? Then, you need to remember one of the most important things, which is to have all documents required for a home loan in hand. Having all the supporting documents will help you receive quick approval on your home loan. Moreover, you must meet a certain standard set by banks and housing finance companies in order to apply for a home loan.

This article will inform you about the documents required for a home loan, as well as how they can help with the application process and determine your eligibility. If you don’t have all of your documents together, your home loan application may be rejected. As a result, it is critical to prepare a checklist of all required documents ahead of time. But before delving deeper into the documents section, let’s understand the concept of a home loan.

Home Loan

A home loan is known as a secured loan that can be procured from any financial institution for the purpose of purchasing a house. These loans are available from both banks and non-banking financial institutions (NBFIs). Home Loans could indeed allow you to meet your funding requirements for purchasing your dream home. There are several types of home loans available in the market, and you can choose one that best suits your needs. The procedure to apply for a home loan is simple and straightforward, and it can be done both online and in person.

For obtaining a home loan, there is a set of documents required for a home loan. Let’s have a look at it.

Documents Required for a Home Loan

Here is the table containing the details of documents required for a home loan.

Salaried Individual Self-Employed Individual
Identity Proof (Aadhaar Card, Voter Id Card, Passport, Driving Licence) Identity Proof (Aadhaar Card, Voter Id Card, Passport, Driving Licence)
Residence Proof (Utility Bills, Passport, Aadhaar Card) Residence Proof (Utility Bills, Passport, Aadhaar Card)
Passport Size Photographs Passport Size Photographs
Form 16 or ITR of Previous Two Years ITR of Previous Three Years
Bank Statement of Previous Three Months Bank Statement of Previous Six Months
Last Salary Slip Proof of Business Address
Property Detail Documents Property Detail Documents

Documents Required from a Loan Guarantor

Here is the list of documents asked from a loan guarantor.

● Identity Proof (Aadhaar Card, Voter Id Card, Driving Licence)
● Address Proof (Utility Bills, Passbook, Aadhaar Card)
● Liabilities Statement
● Personal Assets Statement
● Passport Size Photographs
● Business Address Proof
● Current Bankers’ Signature Recognition

KYC Documents Required for a Home Loan

Here is the detail of KYC documents required for a home loan.

● Identity Proof (Aadhaar Card, Voter Id Card, Driving Licence, PAN Card)
● Address Proof (Utility Bills, Passbook, Aadhaar Card)
● Age Proof (Birth Certificate, 10th Marksheet, Driving Licence, Bank Passbook)

Property Detail Documents Required to Apply for a Home Loan

Here is the name of property detail documents needed to apply for a home loan.

● In the case of a cooperative society, a sale agreement (salaried) or share certificate (self-employed) is required.
● Receipts of the paid taxes on the building and land, a certificate of possession, and a certified sketch of the property’s location from the revenue authorities will be asked.
● Letter of allotment from the Housing Board/Private Builder/Society is also mandatory.
● Advance payment receipts for the purchase of a flat.
● Invoice of land tax payment.
● No Objection Certificate (NOC) issued in accordance with the ULC Act of 1976.
● Construction cost analysis in precision.

Now that we have identified the necessary documents, it’s time to learn about the eligibility requirements to apply for a home loan.

Eligibility Criteria to Apply for a Home Loan

Salaried Person Self-Employed Person
Minimum Age – 23 Minimum Age – 25
Maximum Age – 62 Maximum Age – 70
Minimum Income – Rs. 25,000 Monthly Turnover – Rs. 25,000
Work Experience – Two Years Business Continuity – Minimum Five Years

You may also use the eligibility calculator provided by the financial institutions on their website to check your eligibility and prevent yourself from rejection.

Concluding Comments

Obtaining a home loan is a significant step towards purchasing a house, and all it takes is a guidebook to ensure you abide by all of the minimum standards. Lenders provide lucrative housing loan deals with low home loan interest rates and simple prerequisites. You need to do extensive research before making any decisions, compare them, and choose the best.

AuthorBio:
Vinod Gill is a writer who specializes in writing content on Insurance and Finance subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of Ecompany.

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  • Published Date: March 23, 2022 12:34 PM IST



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