Getting a home loan is all about cutting delays and furnishing the correct information. Here we prep you for filling out the right documents required for home loan.
There are several important parts in the home loan application process. You must start by finding your loan eligibility, and then study the application process in detail. Often, the chances of your application being approved are improved dramatically when you file the documents correctly.
Lending institutions receive a lot of home loan requests every day. If you have not submitted the correct documents required for home loan, your application is flagged down and you are asked to rectify the lacunae. In some cases, the application may even be rejected if the documents are incorrectly filed. Thus, acing the home loan application starts with getting the documentation process down pat.
Here is a short guide to filing the correct documentation for your home loan:
* Understand the application process
Most banks and financial institutions offer a similar loan application process. You can either apply online or offline, though leading institutions encourage online applications for faster processing. Some reputed housing finance companies also offer instant loan approval. Do check with your preferred lending institutions about their application process, and the home loan documents required.
* Get the list of documents required
Every housing finance company has a list of home loan documents required for the application. Make sure that you get this list before you apply, so that you are not forced to append certain documents later or take away certain unnecessary ones. Applications with the correct set of documents are always processed much quicker.
Normally, the list of documents required for home loan include:
- Personal ID proofs: Birth certificate, Aadhaar number, PAN
- Residence proofs: Power/gas/water bill showing your name as the owner, or ration card in which your name is mentioned, or current leave and licence agreement, driving licence, or election card, etc.
- Education qualification certificates (graduation/post graduation)
- Income proofs: Salary slip for at least three months/business income proof for three months, bank statements for last six months showing income deposited in the same
- ITR for last two years
- Application processing fee
- Completed application form with latest photograph
- Copy of the sale agreement of the flat you wish to buy
* Apply for a pre-approved loan.
A pre-approved loan is a good solution to try when you are about to open negotiations on a house, or are certain of buying one in the next few months. The pre-approved loan process is conducted simultaneously while you negotiate with the seller, study the property documents, pay stamp duty and registration fees, etc. You will have to submit the same list of home loan documents required for this process, as listed above.
So, now you know the required documents for home loan in India. But before that, you must analyze different companies to choose a home loan in 2019.