Buying a house is not easy thing to do; it is a big challenge, right from finding the house of your choice to tuning on to the home loan, and if you miss something it will take out a lot of your time. Knowing the requisite documents and their details, however will relieve your extra stress.
Getting full and correct paperwork guarantees timely documentation and hassle-free Home Loan disbursement. You would need such documentation ready to be approved for a home loan, whether you are buying a home from a builder or finding home financing on your own.
You basically need identity proof, age proof, address proof, and income proof to be eligible for a home loan.
Income proof: This is the most critical document that will determine whether or not the person applying for the loan will be able to pay for it. The lender evaluates evidence of income so that they can confirm they put the amount in the proper hands. For salaried employees, the evidence of income differs from that of self-employed people.
Proof of Age: Age is another Home Loan qualifying requirement. You need to include evidence of your age to prove that you are qualified to apply for a loan or not. Driving License, Visa, Pan Card, Birth Certificate, and 10th Standard Mark Sheet are the records that can be called legal age verification.
Identification Proof: Identity checking is a mandatory move for the bank to interrupt the loan. Any document that proves your identity is recognized as an identity document, such as your name, date of birth, age, gender, caste, religion, etc. Driving License, Voter’s ID, Passport, Pan Card, Aadhaar Card, and NREGA Card are documents that are regarded as a legal Identification Proof document.
Address Proof: The bank also needs you to check that you have a permanent address where you live prior to authorizing a loan, and you will get your letters and bills at that specific address. Getting a checked address guarantees a correct address for the bank’s correspondence. Driving License, Voter ID, Passport, Ration Card, Utility Bills or a letter from a recognized government authority confirming the residence address of the borrower are included among the documents accepted as address evidence.
Self-employed: For self-employed people or those owning their own business, the income evidence includes:
1. A brief history to what type of company you are working with.
2. You need to submit your latest balance sheet, followed by documents that have all the company profit and loss details.
3. A copy of the CA authorized Income Tax Return for the last 3 years.
4. If you have made some advance tax payments, then it would also be appropriate to collect them.
5. To prove your company is registered under the Act of the Shops and Establishments Act, you need to display the registration certificate.
6. If you are a doctor, you need to present your practice certificate as a specialist.
7. If you have made some savings, you need to illustrate evidence of your investments, such as your FDs or shares.
The documents required by salaried employees are as follows:
The Form 16
If you have recently received some raise or promotion, send documents concerning that.
Next, link the organisation you’re working with to the appointment letter.
Send the pay slip of the last 3 months, together with the bank statement of the salary account.
The Income Tax Returns papers for the last three years.
Deed of Purchase: Another important document that you would need if you are planning to purchase a property is the Selling Deed of the house you are buying. It is proof that a property is being bought by you. It means the transfer to you of ownership of the land. And if after a few years you intend or need to sell the same house, then this will be the most valuable document for you, or you will not be able to show that this home belongs to you and you are not attempting to sell any property that is fake.