Everybody dreams of becoming a proud owner of a beautiful house one day. But sometimes you don’t have enough ready resources to have one. It is in this situation when the home loan system offered by a bank or any other financial institution comes to your rescue.
The home loan can be availed to buy a new house, or to renovate an old house, or to buy a plot to build a house. It can be said truly, that, without the home loan system a majority of Indian population would have lived in rented apartment. They can be considered as the driving force behind the residential real estate market. Nowadays, home loans are easily granted by the banks, but you need all the documents duly filled up and in order. Though the documents vary from bank to bank here is a list of the common documents required to avail a home loan. These documents help the bank to establish the KYC of the customer, his income background and the antecedents of the property they want to purchase.
1) Loan application form
The first and the foremost thing which you have to do in order to avail a home loan is to duly fill up the loan application form issued by the bank.
2) 3 passport sized photographs
The photographs should preferably have a white background and clicked within six months of applying for the loan.
3) Identity proof
You need to prove your identity by submitting a Xerox copy of your PAN card, or passport, or driving license, or the voter ID card.
4) Proof of residence
Your residence proof can be established by submitting either a recent copy of your telephone bill, or your passport, or your electricity bill, or your gas bill.
5) Property documents
The property documents required by a bank to issue a home loan include a lot of important papers. In an under-construction flat the permission of construction, Allotment Letter, ablueprint of the Approved Plan copy and Registered Development Agreement of the builder are required. In a ready to move in property, the Occupancy Certificate is required. In an old property, the Property Tax Receipt and latest maintenance bill are required by the bank to issue a home loan.
If the property is in Maharashtra, Registered Agreement for Sale and Share Certificate are required.
6) Account Statement
You have to submit the last six months Bank Account Statement to avail a home loan. If you already have a previous lone then you also have to submit the Loan A/C statement for the last one year.
7) Income Proof
If you are a salaried individual then your proof of income can be established by submitting the salary slip or the salary certificate of last three months. In addition to this, you will also require the copy of the IT Returns or Copy of Form 16 for the last 2 financial years.
If you are a self-employed or a non-salaried applicant then you can establish your income by submitting the Balance Sheet and Profit and Loss A/C for the last 3 years of your business house. You will also require your Business License Details and IT returns of the last 3 years. Beside this, you will also have to establish your business address proof and your professional certificate of qualification like C.A., Doctor, etc.
8) Job Continuity Proof
The job continuity proof can be established by the current Employment Certificate, Job Appointment letter, and the Experience Certificate.
The above was the common documents required by most of the banks to issue a home loan. Some of the banks may ask you for an insurance to protect your loan. In the end, it can be said that now there are multiples of banks providing home loans. So, issuing a home loan is not very difficult if you have all the paperwork ready.