May 30, 2024

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Significant Pointers to Consider While Arranging for Documents Required for Home Loan!

List Of Documents Required For Home Loan When Buying Resale Flat

Buying a house is most probably going to be the biggest financial transaction of your life. Most borrowers choose not to use all of their savings for such a big expense and rather go for a home loan. By taking such a loan, you can get the finances required to buy a house and also keep your savings intact. Once the repayment begins, you can start by paying off home loan EMIs from your monthly income for a specific number of years. 

To begin with, borrowers must fill up loan applications and submit home loan documents required by lenders. Now, it is important to check with the lender regarding the documents required for home loan, as this requirement could differ from lender to lender. The documentation process could turn into a very lengthy process if the lender finds discrepancies, and in worst-case scenarios, the loan application could get rejected. 

To avoid all these problems, take a look at significant pointers you should be aware of before applying for a home loan:

  1. Avoid incomplete documentation 

Many borrowers have had problems with the documentation process simply because of incomplete documentation. This is why it is always best to ask the lender for a checklist of the documents that they require for home loans. This way, you will know exactly what to submit and will avoid prolonging this process.

  1. Always collect the ‘No Dues Certificate’ from previous lenders 

If the property you are buying has previously been bought with the help of a home loan, your seller needs to provide a ‘No Dues certificate’. A lender could reject your home loan application if you fail to submit this certificate. 

  1. Clear all unpaid dues 

Lenders review the credit records of all their applicants before sanctioning home loans. This is where they also check existing EMIs and whether the borrower has been making timely payments. This is why it is advisable to clear all payments on time and avoid any defaults. 

  1. Avoid being a guarantor to an unsteady borrower 

It is never a good idea to be a guarantor to a borrower who is defaulting on their EMI payments. This not just affects the credit score of that borrower but is also a negative sign for the guarantor in the eyes of a lender. The lender holds the guarantor responsible for the default on the loan payments too, which can be a serious problem while applying for a home loan. 

  1. Make sure all your signatures are matching 

Applying for a home loan will require you to sign numerous documents. Now, it is very important to make sure that all the documents have the same signature. Also, this signature should match the one in the records of the lender. 

It is best to be particular about the above-mentioned pointers before submitting home loan documents to the lender. Being careful can help in reducing the chances of a home loan rejection or any documentation hassles.