Documents required for Home Loan Application

You see an advertisement of a beautiful lake view villa with all luxurious amenities and wish to own it; the price also looks ideal. As you feel it is the right abode for you and your family, the next step would be to approach a bank for a home loan.

However, there are certain documents that are required to know your loan eligibility and for the processing of your home loan. If you are aware of these documents, and carry these to the bank during your first visit, it can help you save a lot of your valuable time and effort. These documents can help you know your exact loan eligibility in the first visit itself; moreover, if finalized, these documents can  get your file logged, thus helping you to avoid a second walk to the branch.

Here’s a complete list of documents that are required while applying a home loan:

KYC Documents (Documents for ID proof and address proof): If you are providing a copy of passport, or copy of Aadhaar, it would serve as both ID and address proof. However, if you don’t have a passport or if your passport has expired, then you can present your PAN card copy as ID proof and a latest telephone bill as address proof. The problem with many working professionals is that they change locations often and do not have proof for their current residence. In such cases, a passport copy can be given along with a copy of lease/rent agreement of your current residence.

Income Documents: For salaried class, sealed / attested copy of latest 6 months salary slip or a salary certificate is necessary. Copy of Form 16 will also be required by the bank. In case of self employed / business class, copy of latest 3 year’s ITR’s clubbed with Balance Sheets, P & L Accounts of the respective years (audited and certified) is required. If you are having a service provider kind of job, copies of Form 16-A, which reflects TDS deductions by your vendors will do. In case of NRI’s, an embassy attested salary certificate is often asked by the bank, along with a valid job contract copy.

Statements: Some banks ask for updated six months bank statement, while some banks require updated One year bank statement. For self employed / business class, one year bank statement is compulsory. If you have any other loans or liabilities, statements of those loans are also required to submit. If you have a recently extinguished loan, statements / loan closure letters can be asked by banks.

These are the documents required for sanctioning a home loan. Once your loan is sanctioned for the requested / eligible amount, you need to submit the legal documents pertaining to the property. It includes the present title deed, prior title deeds, sale and construction agreements (in case of apartments / villas), encumbrance certificate, latest land tax receipt, possession and location certificate (in the name of the present owner) approved plan and a copy of building permit. In case of house / apartment purchase, sale agreement / receipts of down payment also will be asked.