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Required Documents for Home Loan Application

Applying for a Home Loan involves a careful documentation process to verify your identity, creditworthiness and the legality of your property. Being well-prepared with the necessary documents can not only increase your chances but also accelerate the Home Loan process.

Below is a comprehensive guide to the documents that financial institutions require to approve your Home Loan application and decide on Home Loan rates today.

Why is the submission of documents important for Home Loan approval?

Home Loan

 

Submitting the essential documents is important before the bank finalises your Home Loan as it helps the bank verify you from a legal and creditworthiness perspective. The process also ensures that the property you are purchasing is legal and devoid of any property fraud.

You get a basic idea of your eligibility when you use the Home Loan eligibility calculator. Still, once you have submitted your documents for a Home Loan, the bank thoroughly examines your documents to ensure there are no irregularities.

General documents required for Home Loans

  • Completed application form duly filled and signed by the applicant
  • Recent passport-size photographs

Proof of identification

  • Passport
  • Adhaar
  • Voter ID
  • PAN card

Proof of Address

  • Utility Bills
  • Adhaar
  • Passport

Proof of income

  • Salaried: Salary slips from the last three months.
  • Self-employed: Bank statements for 6 months, Income Tax Returns(ITR)

Signature Proof

  • Passport
  • PAN Card
  • Verification from banker
  • Notarised Affidavit

Date of Birth Proof

  • PAN card
  • Adhaar Card
  • driving license
  • birth certificate
  • SSC Marksheet

Other Important Documents

  • Mandatory Adhaar Card
  • PAN Card
  • Proof of Residence for all individuals

Property Documents

  • Sale Agreement: Agreement with the builder or seller.
  • Title Deed: Legal document proving property ownership.
  • Approved Building Plan: Sanctioned plan from the competent authority.

Documents Required For Proof of Income

Salaried Employees

  • 3 months pay slip
  • 6 months bank statements
  • 6 months’ pay slip with bonus
  • 2 yrs Form 16
  • 3-month job appointment letter
  • Appointment letter/contract letter
  • Continuous Discharge Certificate
  • Overseas credit report
  • Valid visa/copy/OCI card
  • Passport copy
  • POA details

For Self-Employed Individuals

  • P&L, Balance Sheet with CA Seal and Sign
  • 2 yrs ITR with Computation of Income
  • CPC and tax paid challan
  • Tax Audit Report (in some cases)
  • 6 months bank statements.
  • ITR filings with digital sign

For Partners/ Directors in Firms

  • Partnership Deed, List of Partners
  • NOC as per Axis Bank format
  • Financials with audited ITR
  • Partnership authority letter
  • Board Resolution (for Companies)
  • Articles of Incorporation, MOA and ADA
  • DIN of all Directors, Board Resolution
  • Company Share Holding Pattern

Documentation Tips for Smooth Home Loan Processing

Here are some tips to ensure a smooth Home Loan processing:

  • Check Eligibility: Start with checking your eligibility using the Home Loan eligibility calculator. If your choice of institution provides you with the ideal balance between your monthly EMIs based on your tenure and the Home Loan interest rates today, then opt for it.
  • Organise your documents: Gather all your documents and keep them in one place to prevent last-minute confusion.
  • Check validity: Make sure all your documents are up-to-date. Expired documents and cards can postpone the loan approval process.
  • Verify the details: While the general list of documents is the same for everyone, the property documents and income proof vary from individual to individual based on their type of Home Loan and their source of income. Go through the list to make sure you have the right documents in place.

Conclusion

Proper documentation is a key aspect of securing a Home Loan. By ensuring all your documents are in place and maintaining a good credit score, you have a higher chance of getting your dream home at the best Home Loan rates today. Use a Home Loan eligibility calculator beforehand for a more seamless and informed loan process.

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