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A document checklist for Home Loans

• Posted by Anujit Bhattachaarya December 9, 2021 Filed in Aliens & UFO #Home Loan documents  54 views
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  If you are looking to buy a house, then a Home Loan is the essential Loan you can opt for. Home Loans finance up to 80 % of the purchase price of the house. Home Loans in India are generally long-term and must get repaid over 20 to 30 years.

  
  

  During the Home Loan application, the lender requires specific documents to verify your eligibility. These Home Loan documents are essential because although the Loan is secured, lenders ensure proper diligence to pay the instalments.

  
  

  You should be aware of the list of documents needed because these must be submitted whether you apply for them online or offline. If you make an online Loan application, the lender requests you to submit the hard copy at their branch. Some lenders check the documents you have uploaded online. The documents needed for Home Loan are of three kinds:

  
  

  
  
  • Documents common to the salaried and self-employed borrowers
  
  
  • Documents directed towards salaried borrowers
  
  
  • Documents required to self-employed borrowers
  
  

  
  

  Documents common to the salaried borrower and self-employed borrower:

  
  

  
  
  • ID proofs
  
  
  • Address proofs such as Aadhaar Card, Passport, ration card, Driving License, utility bills, Property tax, Bank Account passbook, and Pension payment orders
  
  
  • Copy of home allotment letter or purchase agreement
  
  
  • Payment receipts showing payment of instalments made to a developer or reseller
  
  
  • Title deeds to resale property
  
  
  • If a plot, title deeds of the same
  
  
  • Proof that the property is not otherwise encumbered
  
  
  • Construction plan's copy that the Local Authority has approved with adequate permissions given as needed
  
  
  • Construction or cost estimate given by the architect
  
  
  • Cheque to cover Loan processing fees
  
  
  • Passport size photos
  
  

  
  

  Documents needed for salaried professionals applying for Home Loans

  
  

  
  
  • Last three months' salary slips
  
  
  • Latest Form 16 and Income tax returns
  
  
  • Bank statements showing salary proofs
  
  
  • Proof of down payment towards the Loan
  
  
  • Appointment or offer letter if the applicant has not worked for more than a year
  
  
  • Bank statement for the last six years showing repayment of any outstanding loans
  
  

  
  

  Documents specific to self-employed borrowers

  
  

  
  
  • Income tax returns along with a computation of income of the last three years. Chartered Accountants should attest them
  
  
  • Balance sheet and profit and loss account of the last three years attested by the CAs
  
  
  • Bank statements of the last six months for businesses
  
  
  • Down payment proofs
  
  

  
  

  Author bio

  
  

  Neha Sharma, a finance student, loves to write in her free time. She has spent considerable time researching the Home Loan documents. Through her work, she has provided a checklist of the same