What are the documents you need when you apply for a home loan?When you apply for a home loan, your bank will ask you for a number of documents. Before approving your loan, the bank wants to know how credible you are as a borrower. Based on the documents you submit, the bank scrutinizes your file – checking your financial standing, past credit history and the property. Gathering all these documents can be time consuming. The task becomes even more daunting if you don’t find proper guidance. So, to help you through this process, SwitchMe put a checklist of all the documents required for a home loan application. This is a basic list of documents that every bank of housing finance company will ask for. There may be further documents required for certain locations.Embedded Tweet:
Here’s the checklist of supporting documents required for home loan application:KYC DOCUMENTS Know Your Customer documents are proof of basic details like – like your full name, PAN, address etc. In the home loan application you would have filled in all these details. All copies need to be self attested.
Residence Address Proof like Passport, Voter ID card OR Copy of Registered Rent Agreement/lease deed with utility bill in landlord’s name.
Photographs – 4 passport size photos
INCOME DOCUMENTS When you apply for a loan, the bank will thoroughly analyse your financials to assess if you can support the loan or not. Generally, only income showing in your bank statements is considered for evaluation.So, your home loan eligibility will be decided on income reflecting on your bank statements only.
Form 16 (both Part A & Part B) and IT Returns both for the last 2 years
Salary slips for the last 3 months
Bank A/c statement for the last 6 months where salary is credited
Copy of Employee ID Card
Employer Certificate/ Appointment Letter/ Increment Letter as applicable
Along with salary, if you can show income from rent, interest, bonus, incentives etc, your will be eligible for a higher loan value.PROPERTY DOCUMENTSIt is important for the bank to know if your property is legally built and if it adheres to regulations of the state. The property documents remain with the bank till you repay the home loan entirely. In case of default, the bank can recover the loan by selling the property. So the bank would also prefer if your property is built by a reputed builder.
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