Are you wondering about the documents required for a home loan to apply for one? Then you have landed at the correct place. The dream of owning a home of your own can come out to be true if you have financial awareness. Owning a home with a home loan is a wiser decision as it shall help you to keep your savings and you will also be prepared for any sudden expenses. So if you are one such person who wants to own a home with a home loan then you must be aware of all the terms and conditions associated with a home loan.
A home loan is a secured loan which means it requires collateral to be pledged in the bank. Before applying for a home loan you should know the home loan documents to make the process of home loan smoother. This article is a guide for you that lists all the documents that are required for a home loan.
Following is the list of property documents required to get the home loan:
Receipt of the taxes paid
Allotment Letter from Society/Housing Board/Private Builder.
Receipts of advance payments for flat purchases.
Certificate of encumbrance encompassing the last 12 years/30 years.
Approved building plan (showing floor plan for flat purchase).
Original No Objection Certificate issued under the ULC Act, 1976.
No objection certificate (NOC) from Builder/Housing Society.
Detailed estimate of construction cost.
A report stating the valuation of property in a standard format by an impaneled valuer.
2. Proof of Identification
Submit the following documents as proof of identification documents required for a home loan.
3. Address proof
Submit the following documents as proof of residence for home loan documents.
Passbook or Bank Statement with Address
4. Passport size photograph
Submit your passport-size photograph to avail of the home loan.
Documents Required for Self-Employed Home Loan
When applying for a home loan as a self-employed individual, lenders typically require a set of documents to assess your financial stability and ability to repay the loan. Keep in mind that requirements may vary between lenders, but generally, you will need the following documents:
1. Proof of Identity and Residence:
Voter ID card
Utility bills (electricity, water, gas) as proof of residence
2. Proof of Business Existence:
Business registration certificate (Partnership deed, Certificate of Incorporation, etc.)
Shop and Establishment Act certificate
GST registration certificate
3. Financial Documents:
Income Tax Returns (ITR) for the last 2-3 years
Profit and Loss Statement and Balance Sheet for the last 2-3 years, audited by a CA
Bank statements for the last 6-12 months (both personal and business accounts)
Business ownership and financial structure details
4. Business Stability Proof:
Business continuity proof (Trade license, etc.)
Any existing loan repayment proof (if applicable)
5. Property Documents:
Title deed of the property
Allotment letter from the builder/seller
6. Self-Declaration Letter:
A letter explaining your business, its nature, and your role in it
Declaration of all outstanding loans (if any)
7. Credit Report:
Your personal and business credit reports
8. Property-related Documents:
Property tax receipts
NOC from the builder or relevant authorities
9. Other Documents:
Any other document specified by the lender
Documents Required for NRI for Home Loan
When applying for a home loan as a Non-Resident Indian (NRI), you will need to provide specific documents to the lender. The exact requirements may vary among financial institutions, but generally, the following documents are commonly requested:
1. Identity and Residence Proof:
Passport (with pages showing the date of entry and exit from India)
Salary Slip: For salaried individuals, the latest salary slips (usually for the last 3-6 months) may be required.
Income Tax Returns (ITR): Copies of income tax returns for the past 2-3 years.
Bank Statements: Typically, the last 6 months' bank statements may be needed.
4. Property Documents:
Sale Deed: A copy of the sale deed of the property.
Property Tax Receipts: Receipts of property tax payments.
5. Loan Statements: Copies of the loan statements from the existing lender showing the outstanding balance.
6. No Objection Certificate (NOC): NOC from the existing lender stating that they have no objection to the balance transfer.
7. List of Documents with the Existing Lender: A list of original property documents held by the existing lender.
8. Credit Report: A copy of your credit report, which the new lender may obtain to assess your creditworthiness.
9. Employment Proof: For salaried individuals, a letter from the employer confirming employment and salary details.
10. Property Valuation Report: Some lenders may request a current valuation report of the property.
The article above is an explanation of all the documents that are required to get a home loan. If you are a salaried employee, self-employed, or an NRI the document requirement may vary and hence you should know the document requirements before applying for a home loan. Keeping documents in prior can help you make the process of a home loan easier.