What Are The Documents Required for Home Loan?

There’s no denying the security associated with home loans applied from the bank or financial institutes. For this reason, home loan providers require a higher amount of documentation when compared to unsecured loans. . Besides their prime significance, these documents are required to process the application. They are the KYC documents, income documents, employment / business establishment proofs, ITR, bank statements, and property documents.

There are other documents that a borrower requires for the housing loan to be processed. And to enjoy the hassle-free home loan process here’s highlighting the inclusive list of documents you will need. 

General Documents Required For a Home Loan 

  • Passport-sized photos 
  • Completed Application form 
  • Residence proof
  • ID proof
  • Bank account statements of the past 6 months
  • Sign verification by the applicant’s bankers 
  • Personal assets and liabilities statement
  • Detailed property documents
  • Salary slips (salaried applicants) or other income proof (self employed applicants)
  • Form 16/IT Returns for two financial years.
  • IT Returns or Assessment Orders copies of the last three years.
  • Attested proof of tax payments
  • Business address proof for non-salaried individuals
  • Assessment orders copy of IT returns of the previous three years.

Demonstrating the KYC Documents Required for the Home Loan Application

The following are all the documents required for the KYC. Read on to find out. 

Any One Of the Following Photo Identification Proof 

  • PAN Card
  • Passport
  • Voter ID Card
  • Driving License

Any One of the Given Residence Proof

  • Ration Card
  • Electricity Bill
  • Employment Letter
  • Telephone Bill
  • Bank Statement or Passbook with address

The Mandatory Age Proof

  • Passport
  • PAN card
  • Driving license
  • Birth certificate
  • Bank passbook
  • 10th class mark sheet 

Understanding the Documents Needed for the Loan Guarantor

The following are the list of documents that a loan guarantor requires showing. Read on:

  • Personal Assets and Liabilities Statement
  • Passport-sized photos (2)
  • Identify proof
  • Business address proof 
  • Residence proof
  • Signature identification from the present bankers

Property Documents Needed for the Home Loan

  1. Sale Agreement or Deed of Sale or the Share Certificate (the original document) in case of a cooperative society.
  2. Letter of Allotment from the board/private society/housing builder
  3. Receipts for the taxes that are paid for the certificate of possession, building, and land, as well as a certified sketch of the property’s location from the revenue authorities
  4. Receipts of the advance payments for the flat purchase
  5. Certificate of non-encumbrance that includes the past 12 or 13 years.
  6. Land tax payment receipt as well as the certificate of possession issued by the revenue authorities
  7. Letter of Permission from the appropriate authority
  8. Building plan’s approval that shows the floor plan for the flat or house
  9. The No Objection Certificate (original) issued under ULC Act
  10. Photocopy of the relative order when the agricultural land gets converted
  11. NOC or no objection certificate for the housing or builder society
  12. A detailed estimate of the construction cost
  13. Letter from the builder/society/housing board that mentions the bank and account details for instalment remittance.
  14. Application for the land plot purchase, the declaration by the loan borrower that stipulates the data for constructing the house
  15. The lawyer’s report as far as the standard format is concerned
  16. A report that states the property valuation in a standard format by the empanelled valuer
  17. The post-closure of the loan, documents needed for the handover of the original property documents, etc.
  18. A power of attorney to collect the property’s original documents 

Proof of Income

Both salaried and self-employed people can opt for a home loan by showing the following documents:

For self-employed people – 

  • Last 3 ITR,
  • Details of business licence,
  • Business address, 
  • Professional Practice licence if you are a consultant or doctor 
  • If you are a factory or shop owner, you need the Establishment Registration Certificate.
  • Details of profit and loss or balance sheet

For salaried people –                             

  • Last two payslips
  • Form 16
  • Last 3 ITR
  • Investment proof
  • Employer letter

In the Unfortunate Demise of the Loan Borrower

  1. The letter that requests handing over of the property documents from the Legal Heir or Nominee(s)
  2. The letter that relinquishes the right to the legal nominees or heirs for the handover of the Property documents

In addition to the documents required for a home loan as mentioned above, your bank or financial institution might ask for other documents if they require more information. So, if you want to apply for a home loan or want more details about the documents, contact the lender’s website at the earliest. Their experts will guide you through the process.