Home Loan Documents: A Guideline On What You Need To Turn Your Dream In Reality

The overall loan process cannot be avoided, but you can make it a bit easier if you are aware of what you can do to ensure your home loan documents are up to date and your application is not rejected

For self-employed professionals like a doctor or CA, documents such as a license and registration certificate are needed as business proof

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Buying a home is a dream that many have. In today's economy, there are already enough challenges to be able to afford a home and then find one that suits our needs without falling prey to a scam. While the overall process cannot be avoided, you can make the quest a bit easier if you are aware of what you can do to ensure your home loan documents are up to date and your application is not rejected. This can be done if you keep your documents handy for the application. So let’s go through a checklist of documents that are needed by all individuals for their home loan application and then look into specific ones that you will need depending on the source of your income.

Common Documents 

Identification Proof - Your application will only be complete when you provide identity proof along with the form. A passport, Aadhaar card, Voter ID card, or driving license can be used as proof of identity. 

Residence Proof - The next step in your application is to provide a valid and updated address proof. Documents such as utility bills like electricity, water or phone bills, ration cards, bank statements with address, or an Aadhaar card can be used to establish your residence. Always ensure that your current address is updated on the document you provide. 

Age Proof - A lender can only accept your application once they verify your age. To furnish this detail, you can submit your PAN card, passport, birth certificate, class 10th mark sheet, driving license, Aadhaar card, or bank passbook with the date of birth included in it. 

Property Documents - To sign off on your home loan application, the lender will need to verify the details of the property for which you are seeking the loan. Documents such as receipts of payments made to the developer (if it is a new house), the allotment letter or buyer agreement, title deeds explaining the details of previous property documents (if house resale), sale agreement copy, title deeds of the plot (if applicable), a copy of the house plans signed off by the local authority, and receipt of initial payment made to the home seller will be needed from the applicant. 

Miscellaneous Documents - In addition to these documents, you will also need to submit three recent passport-sized photographs. Depending on the lender you choose, you might need to furnish proof of own contribution, bank statements of the last 6 months showing the repayment of existing loans (if any), and details of current loans like outstanding dues, installment amount, etc. 

Salaried Applicants 

If you are a salaried individual, there are certain documents specifically required for you to submit. These include an employment contract or letter detailing the current designation and salary structure, Form 16, the last 3 months' payslip, an increment or promotion letter, along the income tax returns filed for the last three years. 

Self-Employed Individuals

As a self-employed professional or business owner, you might need to submit some extra documentation along with the typical documents. These documents include proof of business such as GST registration details, a company PAN card, or a business establishment certificate. For self-employed professionals like a doctor or CA, documents such as a license and registration certificate are needed as business proof. Further, self-employed individuals need to furnish income tax returns of the last three years, audited balance sheets, and profit-loss statements of the firm, along with bank statements of the business account for the last six months. 

Overall, ensure that you submit a filled and accurate home loan application form. See to it that the details provided on the form and the documents furnished match and the documents are updated to reflect accurate information. It is crucial to do your own research before selecting a home loan lender to make sure that the loan details match with your financial preference and long term goals.