A home provides shelter and protection from the outside world. It gives you a space to let your guard down and live with your loved ones. You can either rent or buy a home. Buying a home is more beneficial than renting. You can acquire property ownership by paying the same amount in the mortgage as you would spend on monthly rent. This assures long-term financial security and capital appreciation.
As mentioned, mortgages are the most common way to finance a home purchase in modern times. Banks today offer up to Rs. 5 crore as a Housing Loan at a competitive interest rate for a tenure of 30 years. You can repay the Loan amount in affordable Monthly Instalments, which helps you systematically finance your home purchase. Application, documentation, verification, approval, and disbursement are major aspects of the Home Loan process.
Documentation impacts the approvals, timelines, and offers. Hence, make no mistake with the Home Loan documentation. Here are some FAQs about Home Loan documents.
Is it possible to get a Home Loan without documents?
The bank asks you to submit various documents to verify your identity and establish your Home Loan eligibility. Hence, it is practically impossible to get a Home Loan without documents.
What are the mandatory documents for a Home Loan application?
Following is a mandatory list of Home Loan documents you need to submit to apply for a Loan:
- KYC documents – Aadhaar/ Passport/ Voter’s ID/ Driver’s license
- Date of birth proof – PAN Card/ Birth Certificate/ Aadhaar
- Signature proof – PAN Card/ Passport/ Banker’s verification
What are the income documents required for a Home Loan application?
Following is a list of income documents you need to submit to apply for a Housing Loan:
Salaried employees
- Latest two months’ salary slip
- Latest six months’ pay slip/ two years of bonus proof (in case of variable pay)
- Latest six months’ Bank Account statements showing salary credits
- Latest one-year Form 16 or employment continuity proof with Auth/digital signature
Self-employed professionals
- Two years ITR, Computation of Income, Profit and Loss, Balance Sheet (with applicable schedules) with CA seal and sign
- Tax Audit Report (if the gross turnover exceeds Rs. 1 Crore or gross receipts exceed Rs. 25 lakhs)
- Latest six months Personal and Business Account statements
- If ITR Is filled without digital sign – CPC and tax paid challan
- Business continuity proof (Three years for HL/LAP)
- Latest Share Holding Pattern duly signed by the Company Secretary/ List of Directors
Note: This is merely an indicative list. Additional documents may be asked on a case-to-case basis.
Do you need to submit photocopies or original documents?
Ideally, you need to submit self-attested photocopies of the mandatory Home Loan documents and income proofs to apply for a Home Loan. You must submit all original property documents to the bank on Loan approval. The bank holds these original property documents until your Home Loan is fully repaid.