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A Quick Checklist of Documents Required for Housing Loan

 Many potential home buyers often wonder what leads to the rejection of their house loan application. Factors like good credit score, eligible monthly income, and proper submission of loan documents influence the merit of a potential home loan application. 

This blog mentions the list of documents required for housing loans based on property and lending organisations, along with KYC submission, to receive prompt approval of your home loan. 



Documents mandatory for a loan application

Besides a duly filled loan application form, here's the list of papers you must submit for a housing loan:

        ID proof (Aadhar, PAN, Voter card)

        Passport size recent photos (not older than 6-months)

        Signature proof

        Proof of residentship

        Bank statement proof for previous 6-months

        Proof of personal assets

        Attaching property proof against which loan applied

        Income proof

        Filed income tax certification proof

Current loan applications undergo digital verification. Preserve the submitted copies for manual verification as a part of pre-loan approval vigilance. 

House loan documents for salaried applicants

Salaried folks are the likeliest customers looking for affordable home loan offers. Thanks to their regular source of income, they ensure smooth repayment. Documentation required includes:

        Salary proof (last 3-months)

        Form 16 copy (IT returns deducted from salary)

        Bank account statement (last 6-months)

        CIBIL record

What documents to submit for self-employed applicants?

Self-employed individuals can receive home loans upon submission of the following documents that include:

        Income source

        PAN

        GST No. 

        Credit history

        Trade license copy

        Proof of IT returns

        Balance sheet copy

        SEBI certification

        Business association proof

        Business registration proof (ROC copy)

Even freelancers offering services qualify for availing home loans upon furnishing the following documentation:

        Income proof

        IT returns copy

        PAN No.

        Nature of service provided

        Bank statement (last 6-months)

 

What documents to provide for buying pre-constructed properties? 

Documents required for housing loans to cover pre-constructed resale properties often require clearance of sales deed from the property authority for co-operative societies.

        Allotment letter (confirming the new owner)

        Land tax papers

        A copy of the down payment receipt before handover

        Encumbrance certificate (confirmation of a legal property)

        NOC proof

        Building plan proof of where the property belongs

        Bank account statement to ensure EMI payments

        For resale properties, copy of original documents to track the first seller

        Estimate of property brought to decide the home loan amount.

What documents to furnish for under-construction properties?

Housing loans for constructing your house vary from home loans for buying residential properties. To furnish a construction-only/construction-to-permanent loan, submit the following documents:

        Copy of land rights

        Permission for residential construction on farmlands

        Building plan for the property against which loan applied

        Builder's license copy

        Clearance to begin construction

        The estimated construction cost of the approved structure

        Purchase papers of the construction land

 Conclusion

Financing residential properties through home loans is an affordable choice. Thanks to low home loan rates, it's easy to buy a house or construct one while repaying home loans, often extending to 20-years. If you are new to home loans, ask for a certified home loan agent who would do the entire paperwork for you at a meagre cost. 

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