Buying a house without some kind of financial support is almost unheard of. Most homebuyers apply for housing loan plans to afford the cost of a property. While a home loan is very helpful when it comes to arranging the required funds for a property purchase, you first need to think about the documentation process of getting the loan. In the past, there have been borrowers who have struggled with completing the documentation process. The reason for this is that some borrowers are simply unaware of the financial institution’s requirements for home loan documents.
In some cases, borrowers submit incomplete documents, or some documents are inaccurate. These issues can cause the documentation process to unnecessarily drag on. Sometimes, these mistakes can actually lead to your application getting rejected. But there is no need to worry if you are aware of the documents needed for a home loan.
So, let us take a look at a general list of documents that financial institutions require borrowers to submit while applying for a home loan:
Documents needed for proof of address
- Phone bill (post-paid)
- Bank passbook
- Property tax receipt
- Utility bills such as telephone bill, electricity bill, water bill, gas bill, etc.
- Any documents that prove your identity (PAN card, Aadhaar card, driving license, passport, voter ID)
Documents needed for identification purposes
- Phone bill (post-paid)
- Driving license
- PAN card
- Passport
- Voter ID
Documents needed for the property expenses
- Land tax receipt (original)
- Occupancy certificate (for constructed apartments)
- The total estimate of the construction costs
- Allotment letter/sales deed/stamped sale agreement
- Bank account statement of the payment made to the builder
- NOC (No Objection Certificate)
- Possession certificate
Documents that are required to be submitted in case you are a self-employed individual
- SEBI registration certificate
- Partnership deed
- Account statement for the record of profit and loss
- ROC registration certificate
- Trade license
- Balance sheet
- GST registration certificate
- Bank statements (past 6 months)
- Import Export Code
- Memorandum of Association
Documents that are required to be submitted in case you are a salaried employee
- Form 16
- Salary slips (past 3 months)
- Original bank statements (past 6 months)
- Documents of all the current loans along with EMI payment records
Therefore, this is a general list of the documents required for home loan. Please keep in mind that not all financial institutions will have the same documentation requirements. Each financial institution can have varying requirements. This is why it is better to first inquire with the lender about their exact documentation requirements before going ahead and applying for a home loan.
Also, check with the lender about their home loan eligibility criteria. This is very important, as it will give you an idea about the loan amount that the lender can offer based on your eligibility.
