Applying For A Home Loan? Here Is The Document Checklist
Home loan is a pre-requisite to buy a residential property for most of us today. However, the mere mention of the subject makes many anxious as the process involves a whole lot of documentation and verification. There is absolutely no need to panic — you only need to have some basic documents to secure a home loan. They are general available with you and you only have to put them together.
Let us have a look at what all you need.
Banks are willing to provide loan only when they are positive about the repaying capacity of the buyer. Income proof is the first and foremost document that proves the buyer’s financial stability and capacity. The buyer needs to submit income proof whether they are into a job or self-employed. In case you are employed, you will have to give your last three months’ salary slips provided by your employer. Those in business can produce Income Tax Returns (ITR) as proof of their income.
Generally, the employment and income of an employee is verified through salary slips of three-six months. At times, banks ask for appointment letter or a letter from the employer certifying your employment status with them.
You are also required to submit your bank statement of last six months. This reflects your financial profile, business related activity if self-employed, average monthly balance, saving and spending habits as well as information on defaults such as cheque bounce or non-maintenance of minimum balance in the bank account.
You would need to submit your age proof, too. A copy of any your Aadhaar card, school-leaving certificate, passport, ration card, PAN card, driving licence or a voting card would do the job.
An electricity bill or a phone bill from a public sector enterprise is acceptable as a proof of residence. Your Aadhaar card and driving licence is also accepted as address proof. One can also submit bank statement mentioning one’s address as a proof of residence.
Photo ID proof:
Any government-issued document that contains your name along with your photograph is accepted as a photo ID proof. It can be your PAN card, driving licence or passport.
Please note that the documents submitted should be valid and legally verifiable. The credit team of the chosen bank scrutinises the details and verifies each and every document provided by the buyer.