A home loan is an ideal solution for housing needs. Whether you want to purchase land or property for personal or commercial use, you can take a home loan. Since it is a high-value loan, the need for eligibility and background verification is vital. The principal loan amount of a home loan is very high in comparison to other kinds of loans.
It is important to have all the home loan documents required that are substantial proof of identity, financial and property verification. Banks are very strict when it comes to documentation. Therefore, salaried as well as self-employed individuals need to produce the required list of documentation. An application for a home loan will remain incomplete without the submission of documents. Therefore, it is crucial to have every document listed below.
Identification with a photograph
- Passport
- PAN Card
- Driving License
- Voters' ID Card
Residence proof
- Electricity Bill
- Ration Card
- Telephone Bill
- Employment Letter
- Passbook or bank statement with address
Documents proving your age
- PAN card
- Passport
- Birth certificate
- Driving licence
- Bank passbook
- 10th-grade mark sheet
Important documents for a home loan
- Loan application form
- Statement of bank accounts
- Two passport-size photographs
- Passbook statement for the last six months
- Liability statement
- Personal assets
- Property documents
- Salary certificate
- Signature verification
- Form 16
- Income tax returns
- An advance income tax payment
- Proof of business
- Employment proof
- Salary slips
List of property documents required
- An allotment letter from the private builder
- Deed of sale agreement
- Receipt of advance payment received for the taxes paid for land and property
- Receipt of land tax payment
- Approved building plans
- "No objection" certificate
- Relative order copy
- Permission letter from the authority
- Detailed construction costs
- Land cost purchase declaration
- Power of attorney
The importance of documents
Documentation helps in gathering information about the individual. Banks and non-banking institutions will require the validation of personal identification. Therefore, the required documentation will help the loan providers run a background check. It actually validates the borrower’s identity, history, and any legal issues related to it.
- Documentation in a home loan is important to validate the financial and credit history of the individuals. In such a loan, the principal loan amount is very high. Therefore, financial documents are important to validate the credit and financial background and history. Without complete documentation, loan providers will not find relevant information to check.
- Property documentation is very important in a loan for a home. Before validating the property details, loan providers will never approve a
loan against that property. There are various legal issues and procedures related to a particular property. With the property documents, the loan providers run a property background check to ensure everything is legally done.
Finishing up
To get a home loan, it is important to have all the home loan documents required by banks and non-banking financial institutions. You can connect with the representatives to know the complete procedure of home loan eligibility.
