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Are you unsure about taking a loan to buy a home? In today’s market, securing a home loan is a smart move. That’s why we’ve dedicated an entire blog to explain why financing your home purchase with a loan makes sense. However, choosing a home loan is just the first step. It’s crucial to understand all aspects, including the required documentation, to make an informed decision.
A few documents must be submitted in order for any financial institution to be certain of your loan eligibility and repayment capacity. These also have the added benefit of safeguarding the lender’s interests in the event that you are unable to make payments. The number of documentation needed for a house loan is minimal. Generally, you must supply the next five.
Identification evidence
You can present any form of official identification here. Some lenders will take your passport, driver’s license, PAN card, or voter ID, though your Aadhaar card is recommended.
Provide proof of address
If your address and identity are on any of your home loan documents, you can accomplish two goals at once. Provide a copy of your phone bill, post-paid mobile bill, or electricity bill to check the address evidence box, but, if your identification verification document does not include your address.
Property documents
Property papers are among the most significant types of home loan documents. The sales deed, allotment letter, and/or stamped sale agreement are usually required. Additionally, you might need to present an occupancy certificate, evidence of payment to the seller or builder, and a no objection certificate from the builder or society.
Proof of income
All lenders require proof of income when it comes to house loan paperwork. However, the list changes based on whether you work for yourself or for a living. If you are paid, you must submit Form 16, bank account statements, and pay stubs.
Business documents
There are additional documentation you must present when applying for a house loan if you work for yourself. These relate to the existence of your business and may involve some or all of the following:
- Business profile
- Business PAN
- GST registration
- Income tax returns for the business
- Partnership deed
- Trade license
When it comes to house loan documentation, it’s important to remember that each lender will have their own list. While some financial institutions will require you to submit all of the items on this list, others will just ask for a handful. Rarely, depending on variables like a low credit score, lenders could ask you to provide additional documentation.