Home Loans – Required Documentation

After deciding to take a home loan for the purchase of your dream home, the first thing to that needs to be consider is the required documentation for getting home loans. If any of the important documents are not submitted then approval of the home loan can get delayed and there can also be chances of application being forwarded.

The procedure for getting a loan starts off with the application form filling, before which you should go through bank's website to know about the required documents. Most commonly the documents asked from an applicable are; PAN card, Passport, Voter ID card, Ration card etc. Additionally, banks have different documentation requirements depending upon:

  1. Purpose of loan
  2. Applicants category
  3. Loan amount
  4. Term of loan

Documentation for Salaried People

  • Last 3 months salary slips
  • Updated salary certificate
  • 2 years job continuity
  • Appointment letter
  • 2 years Form 16
  • 6 months bank statement
  • For private limited company employees, company profile

Documentation for Self Employed People

  • Business profile on company letterhead
  • Last 3 years IT returns
  • Chartered accountant certified income computation
  • Last 3 years balance sheet & P / L account
  • Last 1 year bank statement for personal & business account
  • For professionals, professional certificate copy

Documentation for Property

  • Khata certificate
  • Last 13 years EC
  • Latest paid receipt for property tax
  • Last 13 years parent documents & rest link documents
  • Already made payment receipts
  • For old house purchase; seller's title documents & sale agreement
  • For flat that is newly constructed; construction or sale agreement & on builder's letterhead break up of total cost

The other important point to keep note of are that banks always make sure that repayments to be made by borrower on home loans do not exceed 40% of his net salary & lend about 90% of loan amount. If your repayment record has been poor or had defaults for previous loans then it could be very difficult to get approved for a home loan.

Source by Ravijain Kumar Singh

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