Applying for a home loan? Well, this is not going to be a layman process. A home loan is a high-value loan and there are various things that you need to keep in mind in order to get your borrowing done with ease. Along with eligibility criteria, comes documentation. Documentation is an essential thing that needs to be checked well in order to start, process, and complete your home loan or house renovation loan process. Without documents, it is not possible to process your application. It is about validating all the financial documents, personal identification, and lastly, property verification. The financial institutions will ask for a long list of documents and do not expect to apply for a home loan with an Aadhar card only. Let's take a look at all the documents that you need to start working on:
Documentation for a home loan
● PAN Card
● Passport
● Voter’s ID Card
● Driving License
● Birth Certificate
● 10th Class Marksheet
● Bank Passbook
● Driving License
● Bank Passbook
● Voter’s ID
● Ration Card
● Passport
● Utility bills
● Telephone Bill
● Electricity Bill
● Water Bill
● Gas Bill
● LIC Policy Receipt
● Letter from a recognized public authority
verifying the customer’s address
● Form 16
● Certified letter from Employer
● Payslip of last 2 months
● Increment or Promotion letter
● IT returns of past 3 years
● Balance Sheet
● Profit & Loss Account Statement of the
Company
● Business License Details
● The license of Professional Practice
● Registration Certificate of Establishment
● Proof of Business Address
● NOC from Society
● A detailed estimate of the cost of construction
of the house
● Registered Sale Deed
● Allotment
Letter or Stamped Agreement of Sale with the Builder
● Occupancy Certificate
● Property Tax Receipts, Maintenance Bills, and
Electricity Bills
● Receipts of the advance payments made towards the
purchase of flat
● An approved copy of the building
Why is documentation important?
To get a home loan, you need to submit all the documents to your loan provider. There is little difference in documents for a salaried and a self-employed individual. Documentation is important for validation and verification of all the details before a loan provider proceeds with the disbursement. Documentation validated the information regarding personal identification, financial resources, and property details. It is very important to have all the documents in the right order so that you can process your application. Learn How to calculate business loan by using business loan calculator.
Wrapping up
Documentation is important for both home renovation loans as well as a home loans. Documents verify a borrower and make it authentic for a loan provider to trust a homeowner with a huge amount of money. Before offering a loan, one of the financial institutions needs to cross-check personal information and property details.
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