Owning your own home is everyone’s dream. You have an attractive option of taking a home loan to set up your home. But, before applying for a home loan, prepare your documents completely, because any mistake in them can lead to delay in getting your loan or the loan application can also be rejected. The conditions and eligibility for taking home loan are different for employed and business people. Both types of investors should get their documents in order before applying for a home loan. This preparation will fulfill your dream of owning a home by getting the home loan approved on time.
what are the required documents
Identity card and residence certificate: PAN card is a mandatory document for home loan. Apart from this, a copy of any one of the passport, which is not expired, Aadhar card, driving license, voter ID card will have to be given as proof of identity and residence. If these certificates are not available, a job card issued by NREGA and signed by a competent authority of the State Government or a letter issued by the National Population Register containing full details of name and address can also be submitted. Can be used as identity and residence certificate.
income certificate : Employed people will have to provide salary slip or salary certificate for the last three months, two years’ Form-16 and income tax return and six months’ bank statement, which contains details of salary credit, as proof of income. Along with this, if there is already a loan, then the loan statement of the last one year will also have to be given. If you do business, then you will have to provide business address proof, last three years balance sheet and profit and loss account, business license documents and TDS certificate or Form 16 (if applicable).
Documents related to property: If you are buying a new house, you will have to give the allotment letter or agreement letter to the bank. Along with this, the developer will also have to present a copy of the receipt of the payment made. If you are buying a house for resale, you will need to produce the title deed, receipt of the initial payment made to the seller and the agreement to sell (if the sale has been completed). If you want to build your house yourself and want to take a loan for it, then you will need the title deed (ownership certificate) of the plot on which the house is being built, proof of there being no dispute on that property, local authority. A copy of the map approved by the Government, construction estimate given by the architect or civil engineer will have to be given.
Home Loan Processing Fee
This is the fee that banks charge to complete the home loan process. This rate is different for every bank. In some banks this fee is zero. Get information about this also.
Check CIBIL Score
At what rate you will get a home loan, whether the bank will accept your loan application or not, depends on your CIBIL score. Before applying for the loan, investors can check their CIBIL score for free by visiting the CIBIL website.
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