You Should Definitely Keep These Documents Handy When Filling Out a Home Loan Application!

The documentation procedure while applying for a loan has always been a topic of discussion. This is because while borrowers would like this process to be quick, lenders are required to ensure they have all the documents they need for proper verification before offering a loan. The reason why some borrowers struggle with the document procedures while they apply for home loan plans is that they are often not aware of the documentation requirements of their lenders. Submitting incomplete documentation can prolong the process, or in worst-case scenarios, even lead to their applications getting rejected. 

This can easily be avoided by simply being aware of what your lender wants when it comes to home loan documents. So, take a look at the documents required for home loan:

Documents required for identity proof 

1. Passport 
2. PAN card
3. Voter ID 
4. Driving license
5. Aadhaar card 

Documents required for proof of residency  

1. Bank passbook 
2. Utility bills such as electricity bills, telephone bills, gas bills, water bills, etc. 
3. Property tax receipt 
4. Post-paid phone bill  
5. Any of the above-mentioned identity-proof documents that include permanent address

Documents required for the property 

1. NOC from the builder 
2. Estimation of the cost of construction
3. Occupancy certificate (in case of constructed apartments)
4. Sales deed/allotment letter/stamped agreement of sale 
5. Bank account statement of the payment to the builder or seller 
6. Original land tax receipt as well as possession certificate issued by the land revenue department 

Documents required from salaried individuals 

1. Form 16 for proof of income
2. Salary slips of the past 3 months for proof of income 
3. Original bank statements of the past 6 months 
4. Documents of any existing loans along with their track record 

Income documents required for self-employed professionals 

1. Trade license
2. Import Export Code 
3. ROC registration certificate 
4. SEBI registration certificate 
5. Partnership deed
6. GST registration certificate 
7. Memorandum of Association or Article of Association
8. Balance sheet 
9. Bank statements of the past 6 months 
10. Account statement mentioning profit and loss 

If the property that you are buying is under construction, it is possible to get a home loan without the documents for property registration. Do note that the property will need to be registered once you are in possession of it. Also, make sure to get a completion certificate for it. Many people do not know this, but if a borrower has a pre-existing relationship with the lender and is willing to apply for home loan, it is possible for the lender to sanction the loan without any documentation. You will only be required to provide the documents at the time of verification. This of course varies from lender to lender. 

Now, the documents mentioned above are standard requirements of most lenders. However, it is always best to confirm with your lender regarding the exact home loan documents that they require. This will ensure there is no confusion while going through the documentation process.