Are you considering moving into a larger home but are concerned about the cost? Or have you been considering home renovations but are limited by your budget? Today, potential house buyers can choose from a variety of home loans offered by banks and other financial institutions.
Home loans are secured loans. Meaning that until the loan is repaid to the lender, the purchased property remains as collateral with the lender. As a secured kind of financing, house loans necessitate the submission of documentation proving ownership of the property, identity, and income. All the paperwork needed for home loans is listed in this article.
For the processing of a home loan, many lenders have different specifications or sets of paperwork. The following is a list of key crucial documents required for the loan application procedure.
Both salaried employees and independent contractors can easily meet the requirements for eligibility for a house loan.
You must be between the ages of 24 and 65 (at the time of completion of your home loan)
You must be employed on a salary or work for yourself.
Your CIBIL score must be 750 or higher.
What documents are needed for home loans? ( H2)
List of documents required for home loans include-
Property Documents
· Sale deed or Sale Agreement or Share Certificate for cooperative society
· Allotment Letter from Society/Housing Board/Private builder
· Advance payment for purchasing of flat receipt
· Certificate of Non-encumbrance for the last 12 years/30 years
· No Objection Certificate or NOC from builder or housing society
· Land tax repayment receipt
· A report stating the valuation of a property
· Receipts for taxes paid for Building and Land, certificate of possession, and certified sketch of the location of property from revenue authorities.
· A detailed estimate of cost of construction
· Letter from builder/housing society board mentioning their bank details for instalment remittance
· Documents required for handover of original property documents
· Letter requesting handing over of Property documents from Legal Heir/Nominee(s).
Address Proof
· Documents pertaining to property- Property tax receipt, property registration documents
· Voter ID
· Utility bills
· Aadhar card
Age Proof
· Voter ID
· Birth certificate
· Aadhar Card
· School leaving certificate
· Passport
· PAN card
· Driving License
Photo Identity Proof
· Voter ID
· Aadhar Card
· PAN card
· Passport
· Driving License
Employment Details
· Letter of appointment
· 3 most recent pay slips
· Copy of Form 16
· Annual Bonus Letter
If Self Employed
· Challans as evidence of payment of advance income tax
· Evidence of a company address
· Business Permit
· IT returns for the past three years
Income Proof
· Bank account statement over the past six months
Loan Details
· Information about any outstanding loans and bank statements
· Statement of liabilities and asset information
The significance of the documents requested while applying for home loans. (h3)
For a home loan, all of the aforementioned documentation must be provided on time. Your home loan application may be rejected by the lender if they find any discrepancies in the documentation. Equated Monthly Instalments (EMIs), which are determined by the lender, are required for house loan repayment.
Tips to increase your chances of getting a home loan. ( H4 )
Even if you have all the documents needed for home loan, your application can be turned down even if all the necessary paperwork is in place. Here are some suggestions for enhancing your chances:
Pick a loan term that is longer- Longer-term home loans can increase your loan eligibility because the EMI you’ll be required to pay will be lower. It gives you extra time for repayment and increases your likelihood of making on-time payments.
Have a second source of revenue- Having a second source of income can also increase your eligibility. This can include a side hustle, rental revenue, the use of machines or equipment for rent, etc.
Increase your CIBIL rating- Your CIBIL score is a key factor that lenders use to decide whether to approve or deny your loan application. You are a strong candidate for house loans if your credit score is more than 750. You may bargain with it as well.
Addition of a co-applicant- You may include a family member who makes money and has good credit as a co-applicant. Due to the boost in your EMI affordability, this also raises the amount you are qualified to borrow for a house loan.
The approval of documents required for a housing loan is essential. Before beginning the application process, be sure to have the necessary personal and property-related documentation on hand. To guarantee a smooth verification procedure, it is essential that you keep up with the standards for eligibility for home loans. It should be noted that most financial institutions request essentially the same documentation for house loans. However, if more documentation is required, a lender may request it. On your quest to acquire your dream home, Navi.com can be the ideal travelling partner.
