Applying for a home loan is a great way to meet your housing finance needs. However, to get the loan approved, you must provide certain documents to the lender. The documentation for a home loan remains almost the same across all lenders. However, some lenders have very specific requirements. Hence, many experts recommend knowing the lender-specific documents requirement beforehand so that you can keep them handy.
When you submit the home loan application make sure that you attach the necessary documents. Mostly the lenders require photocopies of the documents and only in some cases they may ask for originals. Do you research well so that you can avoid the risk of delay in the home loan approval and disbursal process.
The documents required by the lender may also change based on the type of loan you choose, and your individual credit profile. But there are a few common documents that all lenders request when you submit the home loan application.
The home loan application form duly filled and signed by you and all the co-applicants (in case of joint home loan).
Passport size photographs of all the co-applicants
Identification proof (you can submit a copy of any of the following documents)
- Aadhaar card
- Driving License
- Electoral card
Proof of residence (you can submit a copy of any of the following documents)
- Aadhaar card
- Bank passbook
- Utility bill (LIC receipt, landline or postpaid phone bill, electricity bill)
The income-related documents required for a home loan varies based on whether you are a salaried employee or a self-employed individual.
For salaried individuals
- Salary slips for at least six months
- Form 16
- IT returns filed for last three years
- Increment or appraisal letter issued by the employer
For self-employed individuals
- IT tax returns filed for business of last three years
- A copy of the balance sheet and profit and loss statement of the company. The documents must be duly audited and attested by a qualified CA or CS.
- Business licence obtained from concerned authorities
- Depending on the nature of your business, a copy of the partnership deed, Memorandum of Understanding, etc.
- Proof of licence of professional practice that authorizes you to practice the profession
- If you are a shop owner or own a factor, you must provide a copy of the Registration certificate of Establishment
- Proof of business existence and continuity
Apart from these above documents, whether you are a salaried or self-employed individual, you must provide the following property-related documents.
- NOC (no-object certificate) obtained from the property builder, developer, or the seller
- The blueprint of the project as approved by the concerned authorities
- If you are constructing your home, you must provide a copy of the quotation obtained from the building that lists down an estimate of the construction cost
- Allotment letter, Agreement of sale, Registered sales deed
- OC (Occupancy Certificate)
- Property tax receipts
- Receipts of any advance payments that you may have made for the property purchase
- Copy of the approved floor plan
- Copy of bank account statement or payment receipts reflecting the payments made to the builder or seller
Now that you are aware of the comprehensive list of documents required for availing of a home loan, make sure that you do your due diligence and have the necessary papers ready before you start the home loan application process.