Documents Required for Home Loan

When you apply for a home loan, you must submit certain important documents to the lender; it is an integral part of the application process. Read on to know about what documents you must submit.

Suppose you have decided to buy a house of your own, congratulations! Now, the next step for you would be to look for the best lending institution that offers home loans at the most affordable rate. You can do a simple online search to compare the offers from different lenders. Once you shortlist a few lenders, you can do a bit more detailed research about them.

First and foremost, ensure that you go through the lender-specific eligibility criteria so that you can get a fair idea if you meet their requirements. Next, you can use the EMI calculator for a home loan on the lender’s website to compute the exact EMI you must pay based on the amount you wish to borrow, the tenure and the interest rate. The EMI must be affordable so that you can repay the amount consistently throughout the loan period.

Next, you must take a close look at the documents required by the lender. It is an important aspect of the loan application process, and each lender has their specific requirements. But, most lenders require the following documents for  home buyers .

Documents for Salaried Employees

Identity proof

For all salaried employees, it is mandatory to submit a copy of a PAN Card. Apart from this, you can submit a copy of any of these documents:

• Voter ID Card
• Aadhaar Card
• Copy of valid passport
• Driving license
• Credit card with photo
• Any identity card issued by a central government or state government body
• A letter from a recognised public authority verifying your customer with a photograph

Proof of residence

You can submit a copy of any of the following documents:

• Aadhaar card
• Passport
• Letter from a recognised public authority verifying the residential address
• Utility bills – electricity bill, post-paid phone bill, landline phone bill, a gas bill (not more than three months old)
• Rent agreement on stamp paper
• A bank statement that reflects the residential address
• Copy of life insurance policy

Income-related documents

• Latest salary slips
• Bank statement of past six months reflect the salary credit
• Latest Form 16 and ITR (Income Tax Returns)

Documents for Self-employed Professionals

Identity proof

You can submit a copy of any of the following documents:

• Voter ID Card
• Aadhaar Card
• Copy of valid passport
• Driving license
• Credit card with photo
• Any identity card issued by a central government or state government body
• A letter from a recognised public authority verifying your customer with a photograph

Proof of residence

You can submit a copy of any of the following documents:

• Aadhaar card
• Passport
• Letter from a recognised public authority verifying the residential address
• Utility bills – electricity bill, post-paid phone bill, landline phone bill, gas bill (not more than three months old)
• Rent agreement on stamp paper
• A bank statement that reflects the residential address
• Copy of life insurance policy

Address proof of business

• You must submit a copy of the following documents (as applicable)
• TLC (Trade License Certificate)
• SSI Registration Certificate
• VAT (Value Added Tax) Registration Certificate
• Partnership Deed / MOA (Memorandum of Association)
• Shops and Establishment Certificate
• GST Registration

Income proof of business

• Latest ITR
• Profit and loss account and balance sheet duly audited and certified by an authorised CA (Chartered Accountant)
• Statement of the current account of the business

Property-related Documents

This is applicable for both salaried employees and self-employed professionals.

• Complete chain of property ownership documents (as applicable)
• Sale Agreement
• Allotment Letter
• Receipt of payment made to the builder/seller

Final Word

Now that you are aware of the documents required for a home loan make sure that you get all your paper handy before you even start approaching the lenders. This will not only help you save the last-minute hassles and avoid delay in the approval process.