Thinking of buying a home is easy, but getting a home loan is a lot more difficult task. As loan includes money, not just money, in fact, we are talking of the amount that is in lakhs and crores, so banks and other finance companies are very serious in checking the background of the applicant. The biggest reason is, they don’t want even a loophole to create any trouble in getting their back money. Therefore, before you begin the process, it is important to know what are those documents needed for the home loan application. A slightest of mistake in the documents or declaration can reject your application or I should say, it can shatter your dream of owning a home.
Home Loan Application Form
As the name suggests, the home loan application form is required so that you can furnish all the necessary details. In case, if there are other applicants for the home loan, then you will also have to fill details of the co-applicants. A home loan application form will always remain incomplete until it doesn’t bear your passport size photograph as well as the photographs of the co-applicants. You will also have to pay the mandatory processing/administrative fee at the time when you will submit your form. As this processing fee in generally non-refundable and vary from bank to bank, so avoid application in multiple banks or finance companies.
Income Related Documents
Your CIBIL score plays a very important role in getting your home loan. As it is needed to declare your income in the CIBIL score, hence submitting your income-related documents becomes mandatory. Banks and private finance companies can also ask you for Form Number 16 or your last two years income tax return stating your total income. In addition to this, the lender asks you for your latest salary slips to make sure that you are still working in the organisation.
Identity and Address Proof
To check the identity of the applicant/applicants, banks and finance companies may ask you for documents, such as PAN card, valid passport, driving license, Aadhar Card or voter identity card, validated by any government department.
To verify your address, the lenders can accept documents like Aadhar Card, driving licence, valid passport, electricity bill or bank passbook with your address printed on it.
For Self-Employed People
The scenario of documents required is slightly different for self-employed people. So, if you are one, then the lenders may demand you the income tax return (ITR) for the last three years along with the declaration of the total income. The banks and other finance companies may also ask you for the copies of the balance sheet or profit and loss statement audited by a Charted Accountant (CA). In case the documents are not verified, then firstly, you have to certify them from a CA and then needed to submit it to the lender. If you are salaried as well as self-employed, the lender can insist you to submit copies of your salary account and statements of the bank account from where the business transactions take place.
Property Related Documents
At the time of applying for the home loan, you will also need to submit all the documents associated with the property. For reselling properties, the lenders will ask you to provide the documents in originals and copies of the chain of owners, i.e. from the first buyer to the current seller. This helps them to scrutinise if the house is not mortgaged earlier.
If you are planning to purchase a property in a Co-Operative Group Housing Society (CGHS), they may ask you to submit a no-objection certificate (NOC) from the society.
In case you are buying the home from a developer, you may have to provide the documents of clearances given by the local authorities. Apart from this, you have to show them the ownership documents, approved building plan and clearance title of the land.
As the above-stated documents are mandatory, hence it is advised to get them ready before you went further in your loan application process.