Documents For Home Loan: Apply Housing Loan

Home loan

The process of applying for a home loan has become easy and accessible. It requires basic personal, employment, income, and property details to complete the documentation. Once you have submitted the application online, wait for the approval. If all the documents are correct and genuine, the loan must be approved and a sanction letter issued.

The final loan amount may be different for salaried and non-salaried individuals. It includes options for the purchase of ready-to-move property, under construction property, construction of a new house, extension of a house, and house renovation.

Home loans give you a lump-sum payment towards the purchase of your dream home, which you have to repay with interest. However, you have to repay in EMIs, making your dream home a more feasible and structured reality.

The Following Documents List Required For A Home Loan

  • Duly signed loan application form
  • Passport-sized photographs
  • Government photo ID 
  • Passport
  • PAN Card
  • Driving License
  • Voters ID Card
  • Residence proof 
  1. Electricity Bill
  2. Ration Card
  3. Telephone Bill
  4. Employment Letter
  5. Passbook or Bank Statement with address
  • Age proof
  1. PAN card
  2. Passport
  3. Birth certificate
  4. Driving license
  5. Bank passbook
  6. Mark sheet from 10th class
  • Last six months’ bank statements
  • Last 3 months’ salary slip
  • Income tax returns for the last 3 years.
  1. Form 16/IT returns for the past 2 financial years. (For salaried employee)
  2. IT Returns copies of the last 3 years. (For self–employed individuals)

Documents Required

Salaried Employees 

Self employed

professionals 

Self employed

Non-professionals 

Application form, duly signed

Applicable

Applicable

Applicable 

Identity, Residence, Age Proof

Applicable 

Applicable 

Applicable

Six months bank statements

Applicable

Applicable

Applicable

Three months salary slip

Applicable

Applicable

Applicable

Processing fee cheque

Applicable

Applicable

Applicable

Form 16, income tax return

Applicable

Applicable

Applicable

Proof of business existence

 

 

Applicable

Business profile

 

 

Applicable

Educational certificate

 

Applicable

Applicable

Last 3 years IT Returns

 

Applicable

Applicable

CA certified balance sheet

 

Applicable

Applicable

 

 

Property Documents Required For Home Loan Approval 

The acceptance of a home loan application is confirmed only after the proper inspection. Any invalid submission of documents leads to the rejection of a home loan and dents your credit score too. That’s why it is required to know the documents required for instant home loan approval.

When someone is purchasing a property, it is required to submit all the relevant documents along with the home loan application form. The required documents vary as per the nature of the property.

For Developer Property ( Buying directly through developer)

  • Allotment letter 
  • Builder buyer agreement 
  • Payment receipt 
  • Permission to mortgage from the builder
  • OC- occupancy certificate (Only in case if ready to move in)

Documents Required For Resale Property (Buying from secondary market)

  • Agreement to sale the property 
  • All prior documents regarding the first allotment of the property
  • A sale agreement in the favor of the seller
  • Standard map of the property
  • Permission to mortgage from the builder 
  • Permission to transfer 

Following Documents Are Added On Both Cases If Property Is Ready To Move-In

  • OC- occupancy certificate with the concerned authority 
  • Possession letter 
  • Convenience/ sale deed

Home Loan Calculator 

Home loan EMI calculator is a basic calculator used to estimate the EMI, interest rate, loan tenure, and interest rate. The home loan calculator helps to know the home loan due, repayment structure, and rate of interest.

EMI- (Equated Monthly Instalment) is the amount payable every month to other financial organization until the total loan amount is paid off. The EMI is the whole sum of the principal amount to be repaid and the interest on the loan.

The home loan calculator acts as a financial planning tool for a new home buyer. It is better known as the EMI calculation of a home loan that makes your home buying journey even better.

How Can You Make Your Dream Home a Reality?

Everyone doesn’t have the whole sum amount to buy a dream home. Therefore, many of us are searching for a financial solution to purchase a home, house, or flat. End your search for a home loan here and discover your perfect dream home.

An array of customized home loan providers is offering no-time and hassle-free home loan processing. Enjoy the remarkable feeling of entering into your dream home at lucrative interest rates.

The Steps Involved In The Processing Of Home Loans

Application for Home Loan: It can be done online or by visiting a bank branch.

Loan Processing Documents: You need to submit the required documents for loan approval.

Approval of home loan: The loan gets approved when the documents are found authentic and original.

Loan processing confirmation: If all works well, your loan gets approved and credited to your bank account. 

Due Diligence By Bank: Documents, financial 

Financial Checks: transactions, bank balance, loans, repayment records.

Field Investigation- residence details, contact details, employer company 

Technical investigation-  physical visit to property, construction quality, property valuation

Legal due diligence- property documents, possession certificate, agreement for sale  

The Checklist Before Applying For A Home Loan 

A home loan is the best financial assistance for those who are seeking a new home or property. The easy monthly repayment option makes it easier for people who are short on cash. Apart from that, don’t forget to consider these terms before taking a home loan.

Compare Home Loan Options

Make an effort to conduct a study on the options available in the market before applying for a home loan because they are readily available online. Your study must imply the three most important aspects of a home loan: down payment, EMIs, and repayment options. 

By conducting research on these three aspects, you will be able to select a tailor-made home loan from a better lender with lower interest rates. Make sure you look into all the essentials and uncover all the nitty-gritty before submitting the loan application.

  1. Compare interest rate online
  2. Negotiate for lowest interest rate home loan
  3. Don’t forget to discuss about processing fee and other charges 

Aim for Cost-Effectiveness

There is a plethora of home loan providers to pick from. You should keep in mind that affordability is a major factor to consider before applying. You should not only be able to afford the loan EMIs, but they can be adjusted comfortably within your budget. So, always choose to buy a property near your preferred location if you are able to afford the home loan.

Choose A Suitable EMI Option

The monthly EMI amount must be in your budget that you can afford after all expanses. The Equated Monthly Instalments depends on the down payment, as the bigger down payment, the lesser the EMI. The monthly EMI doesn’t exceed half of your monthly income to avoid any payment failure. 

Floating Home Loan VS Fixed Home Loan

Floating home loan can be increase or decrease as per the market and fixed home is constant from start to end loan term. It’s totally depends on you that which one you like as both have their pros and cons.

For fixed home loan bank charges more than 1 % interest rate than current to cover the risk. But, you have to pay penalty for pre-payment when you want to pay-off early. 

For floating home loan, you can pre-pay your payment anytime without any pre-payment penalty and other charges.   

CIBIL Score

The credit score is one of the vital aspect for home loan approval. The CIBIL score of more than 750 is ideal for approval of home loan on a lower interest rates. the credit score is the whole sum of the previous loan repayment consistency and credit cards bill payment.

Read All The Documents

Go through all the documents thoroughly to gain a thorough understanding of the loan application. However, for your satisfaction and long-term mutual trust, we require that you read all the required documentation before signing the loan contracts.

 With all of the aforesaid considerations in mind, obtaining a house loan becomes a lot easier.

 You may also learn more about the real estate market by visiting our website.

 

 

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