Minimum Documents Required for Home Loan

For the vast majority of Indians, purchasing a home is likely to be one of life’s most significant accomplishments. Finding the ideal property and then acquiring an appropriate home loan are both crucial. Home loans are taken out for a variety of reasons, not just a lack of finances. There are various additional benefits to receiving a house loan. When applying for a home loan, all banks and housing finance companies require the same documents (HFCs). However, depending on your home loan type, individual credit profile, and so on, some specific criteria may apply. We’ve put together a list of some of the most critical home loan documents you’ll need to submit during the loan application process.

Understanding Home Loan

A home loan is a sum of money borrowed from a financial institution such as a bank or a lending company. You pay an EMI every month to repay the loan. The lender regards the property as security. If the borrower cannot repay the loan, the lending company has the legal right to collect the loan amount.

Types of Home Loans

A house loan is much more than just a way to finance the purchase of a new home. There are various types of home loans:

• Loan for the Purchase of a Home
• Loan for Home Improvements
• Loan for Purchasing Land
• Loan for a Joint Residence
• Home Loan Transfer of Funds
• Loan for Home Improvements

Benefits of a Home Loan

When you take out a home loan, you are effectively developing an asset, as opposed to other loans that may be considered liabilities. In most cases, the value of this asset will only increase with time. This makes obtaining a house loan more enticing.

You can obtain your ideal home.

A house loan has the potential to make your dream a reality. It lowers the cost of purchasing a home.

Repay according to your financial situation.

Home loans are extremely versatile. You can choose a repayment term of up to 30 years, allowing you to make monthly payments that are well within your means. You can choose an EMI and pay off the loan based on your financial situation.

Tax Advantages

You can save a lot of money with a home loan, which is often regarded as the most effective tax-saving instrument. Sections 24, 80C, and 80EEA of the Income Tax Act allow you to deduct up to INR 5 lakhs in taxes.

Asset Development

Your home is an asset that can deliver the highest return on investment. Unlike an automobile, the value of this item will not decrease due to depreciation.

Simple Procedures

From the loan application to the payment travel, the procedures at Home First Finance are easy and transparent. Our dedicated customer care team is always available to you.

 

Home Loan What are the documents needed for a home loan?

Though completing a loan application may appear to be a difficult task, if you do your homework, you will be able to glide through this process with ease. The documents required with the loan application for a house loan are generally dictated by the applicant’s profession/occupation. Let us begin with the documents that everyone has access to:

PAN

Identity Verification

• Driver’s License
• Aadhar Card
• Passport Address
• Proof An Identity
• Proof with the Permanent Address
• Voter’s ID Card

Telephone Receipt for Electricity Bill

• Water Tax
• Property Tax
• Post-paid Mobile Phone Bill

Documents Concerning Property

• Stamped sale agreement/Sales Deed or letter of Allotment
• NOC from the builder/housing society
• Certificate of Possession Estimated Construction Costs

In the event of a newly built apartment, a bank account statement is required, as well as an occupancy certificate

Passport-sized photographs

Home Loan Documents Required for Salaried and Self-Employed Applicants

1. A home loan application form that has been completed and signed.
2. Identification Documentation: (Any one of the below)

• PAN Card,
• Passport,
• Aadhaar Card,
• Voter ID Card
• Driver’s License

1. Age Verification: (Any one of the below)

• Aadhaar Card,
• PAN Card,
• Passport,
• Birth Certificate,
• 10th Class Marksheet,
• Bank Passbook,
• Driving Licenses are all required documents.

1. Documentation of residency: (Any one of the below)

• Bank Passbook
• Voter’s ID
• Ration Card
• Passport
• Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill)
• LIC Policy Receipt
• Letter from a reputable government agency confirming the customer’s address

1. Income Documentation

• Form 16 (Salaried)
• Payslips from the last two months,
• Increment letter
• IT returns for the last three years (increment or promotion letter)

Aside from proof of income, the salaried individual would be asked to give proof of any investment (such as fixed deposits, shares, etc.) as well as passport-size pictures.

For Self Employed:

• Income Tax Returns (ITR) for self-employed individuals over the last three years
• The Balance Sheet and Profit & Loss Account Statement of the Company/Balance Firm (duly attested by a C.A.)
• License Specifications for a Business (or any other equivalent document)
• Professional Practice Permit (For Doctors, Consultants, etc.)
• Certificate of Establishment Registration (For Shops, Factories & Other Establishments)
• Evidence of Business Location

6. List of Property Documents for Home Loan:

• Receipts must accompany payments made to the developer (in case of a new house)
• Buyer Agreement / Letter of Allotment
• Title Deeds, as well as the preceding chain of property papers (in case of house resale)
• a copy of the purchase agreement (if already executed)
• Receipt of the first payment from the house seller
• Title deeds for the plot (in case of house construction)
• A detailed estimate of house construction by an architect or civil engineer.
• A copy of the plans that have been approved by the local government.
• Evidence showing the property is free of encumbrances

7. Additional Documents:

• All candidates and co-applicants are required to provide passport-sized photographs (to be affixed on the application form and signed across)
• Proof of one’s contribution
• Bank statements over the last six months demonstrating debt repayment (if any)
• Information on ongoing loans in the name of an individual or a corporate entity (such as the outstanding amount, monthly installments, purpose, remaining loan length, and so on) (If applicable)
• A check made payable to the home loan provider for the processing charge

For Salaried:

An employment contract or appointment letter is required if the current job is less than a year old.
Latest Form 26 AS for Self-Employed and Business Profile
A CA / CS certifies a list of Directors and Shareholders with their interests in the case of a corporation.
A partnership deed is required if the company entity is a partnership firm.
The Memorandum and Articles of Association of the Company

List of Home Loan Documents Required for NRIs/PIOs Applicants

KYC Documents:

• Passport with VISA stamps / PIO Card
• Proof of Address with a current foreign address

Proof of Income (For Salaried:):

Work permit

• Employment Contract / Appointment Letter / Offer Letter (if in another language, duly attested by employer/consulate / foreign office / embassy)
• The permit to work/identity card (documents in a language other than English must be translated into English and countersigned by the consulate)
• ‘In the last three months’ Wage certificates/slips (in English) detailing name, date of joining, designation, and pay data are required for applicants working in the Middle East.
• Salary credits are shown on bank statements from the previous six months. NRE / NRO Account (if any)
• Credit Bureau Information (in case available in the country where you are residing)
  a legally acknowledged copy of the previous year’s ITR (except
• NRIs/PIOs residing in Middle Eastern countries and merchant navy employees). A copy of their Continuous Discharge Certificate is required for applicants operating in the merchant sea (CDC).
• P60/P45 forms, as well as the most recent employment contract, are required (for salaried)
• Please supply a loan A/C statement for the prior year if you have a previous loan from another bank or lender.

For Self Employed:

• Professional Practice Permit / Business Permit (for Doctors, Consultants, etc.)
• Certificate of Establishment Registration (For Shops, Factories & Other Establishments)
• Proof of business location
• Proof of income is essential for self-employed professionals/businessmen.
• Balance sheets and profit and loss accounts audited or confirmed by a C.A. ITR for the last three years (save for NRI/PIOs resident in Middle Eastern countries)
• ‘In the last six months’ Bank Foreign account statement in the name of an individual and/or a company/unit

Property related documents

• Original title deeds tracing the ownership of the property
• Encumbrance Certificate Agreement for Sale/sale deed/detailed cost estimate from Architect/Engineer for property to be purchased/built/extended/improved
• A copy of the construction/purchase/extension designs that have been approved
• Receipts for payments made to purchase the housing unit, ULC clearance/conversion order, and so on.
• Receipts for investing margin money from NRE/NRO account in India using regular banking channels
• Receipt of the most recent tax payment
• Letter of allocation from the co-operative society/flat owners’ association
• Remember that all documents must be self-attested. Aside from the above-mentioned documents, the lender may need more or less.