Applying for Home Loan? Here’s a list of documents you must have handy!

One of the top reasons for home loan rejections is incomplete documentation. Often applicants submit their application form without furnishing all the documents required. Also, sometimes, the documents are not updated or accurate as per the lender’s requirement. If you plan to avail a home loan, ensure that you do not commit the same mistake. You can check the documents required for home loan from the lenders’ website. Given below is the standard list of documents that the lenders typically ask for. 

Identity proof 

You can submit any one of the following for identity proof- 

• Aadhaar
• Voter card
• PAN
• Passport
• Driving license

Address proof 

Any of the following can be used for residence or address proof – 

• Aadhaar
• Driving license
• Voter ID
• Rent agreement
• Latest utility bill like electricity, telephone and water bill 
• Bank statement or passbook 

The lenders ask for identity proof and address proof to verify your identity and place of residence. The lender could personally visit your home or office to verify your documents and the details provided. 

Income documents –

For salaried individuals

• Salary slip for last two months
• Bank statement for last six months 
• Form 16 or Income Tax Returns of last three years 

For self-employed individuals 

• Income tax returns with computation for the last two financial years
• Audited Profit and Loss account and Balance Sheet duly attested by a Chartered Accountant for last three years
• Copy of the savings account statement of the applicant and current account statement of the business entity for the last six months 

Lenders try to gauge your repayment capacity by looking at your income documents. Through the income documents, they verify if you have a steady flow of income for the loan repayment. It also helps them judge if you are responsible enough to pay your EMIs timely.  

You might also be asked to submit the following document regarding your occupation-

• Shop and establishment certificate
• Partnership deed (for partnership firm) or Memorandum of Association (for company)
• VAT registration certificate
• PAN card of the business
• Professional qualification certificate/Certificate of practice
• Proof of business address

Property documents 

As a home loan applicant, you would be asked to furnish the following property documents. – 

• No Objection Certificate from builder/society
• Payment receipt certifying payment made to seller/builder
• Property tax receipts
• Maintenance receipt and electricity bills  
• An approved copy of the building plan 
• Occupancy certificate 
• Registered sales deed
• A detailed estimate of the construction cost
• Encumbrance certificate
• Sales deed
• Title deed

Lenders scrutinize the property documents for its valuation on which the loan amount is based. They also ask for property documents to ensure that the property is free from any legal disputes and can be sold off, in case of a default. 

To sum up

You cannot get a loan approval without the requisite documentation. Therefore, you must check the required documents list before you apply for a home loan. If needed, you can contact the lender’s representatives and ask them to guide you.