Document Checklist for Home Loans

Getting a Home Loan is easy these days. As long as you have the necessary documents with you, your Home Loan will get approved and disbursed without any complications. Here is a comprehensive checklist of documents that banks and financial companies require for sanctioning a Home Loan. It’s a fairly lengthy read but so, so important!

Read this. Become very knowledgeable. Buy a home. Simple!

Tip: Check with your Bank or Non-Banking Financial Company to figure out which of the following documents you need to submit, as requirements differ from institution to institution.

The Long List Begins!

The documents mentioned below must be provided when applying for a Home Loan:

Identity proof

— Driving license

— Voter ID

— Passport

— PAN card

— Aadhaar Card

— NREGA Card

Address proof

– Driving license

– Voter ID

– Passport

– Ration card

– Utility bill – telephone, electricity, water, gas, postpaid mobile (less than 2 months old)

– Letter from any recognized Government authority verifying the residence address of the customer

– Letter from your employer (in case no other proof is available)

– Bank Statements/Pass book/ other Government documents such as post office pass book

– Property or Municipal tax receipt

– Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address

– Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India

Age proof

– Driving license

– Passport

– PAN card

– Birth certificate

– 10th standard mark sheet

Income proof

Income proof and property proof vary for salaried individuals and self-employed individuals.

Self Employed/Businessmen

– A brief introduction of your business/profession

– Balance sheet, profit and loss account statement of income, proof of income tax returns for the last 3 years certified by a CA

– Receipts of advance tax payments made (if any)

– A photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act

– Certificate of Practice for professionals such as doctors

– Proof of investments (FD Certificates, Shares, any other fixed asset)

Salaried individuals

– Form 16

– Increment/Promotion letters

– Appointment letter

– Payslip (Last 3 months) with salary account bank statement

– IT returns (for the last three years)

– Investment proof (FD certificates, shares, any fixed asset)

– Documents supporting the financial background of the borrower (liabilities and assets if any)

List of the must-have property documents before applying for a Home Loan:

You must check for current home loan interest rates

Sale Deed (Title deed /Mother deed/Conveyance Deed)

The Sale Deed or Title Deed is the most important legal document required while buying a property. It is evidence of the sale and transfer of ownership of the property to you. It is also an essential document if you plan to sell the property after a few years since it serves as proof of ownership. The Sale Deed has to be registered at the Sub Registrar’s office of property jurisdiction within four months from the sale date. Very, very important.

Joint Development Agreement

A crucial document when opting for a property which is part of a joint venture project; the Joint Development Agreement (JDA) is an agreement between a landowner and a builder wherein the landowner contributes his vacant land and the builder undertakes real estate projects on that land. The JDA lets you know whether the landowner or the builder holds ownership of the property you’re buying.

[Source: https://blog.bankbazaar.com/document-checklist-for-home-loans/]