Important Documents Required For Home Loan

Home loan is one of the loans offered by the banks or financial companies to its customer to buy a property. Banks offers home loan which can be easily repaid in monthly EMI without having burden of huge loan. Home loan is one of the secured loans and long-term loan which offer you a period of 20 or more years to repay the loan.

Following documents are important for Home Loan

Duly completed application form: Each banks and financial institutes will have its own application for applying for home loan. You need to complete all the details furnished in the application. Enclose two passport size photographs along with your duly filed application form.

Proof of identity: You need to produce id proof. it can be copy of driving license, passport, PAN card, driving license, employee id, voter id. You will also need to proof your permanent address and current residing address with some document support. Documents can be Ration card, Passport, property (if any), utility bill such as telephone bill, electricity bill etc.

Age Proof: Document to proof your age is one of the important documents required for applying home loan. To prove your age you can submit copy of school certificate, birth certificate, passport, driving license etc.

Financial statements: This is very important for determining the whether an individual should be allotted a home loan or not. You need to prove your financial capacity and affordable amount or credit for month. Financial documents can be proof of monthly income, bank statement of 3 to 6 months, Income tax return filed for last two or more years, repayment track of existing loans or advances, affordable monthly EMI etc.

Property title proof: for sanction of home loan you need to provide the details of property you intent to buy and copies of documents available with you. Plan of building approved from concerned authorities, purchase agreement, details of agreement made for buying the property, no objection certificate and certificate from builder’s charted accountant certifying that building has not mortgaged.

You need to know the market trend and offers made by lending company or banks before signing and agreement for loan. Contact two or more lenders to know interest rate and offers made for you. Select one which suits you most and you need to know the penalty or fee charged by lender for switching the loan or repaying before the tenure of period. You need to make good market research before applying for home loan. There are number of lending companies compete each other for offering loans to new customer. You can get your loan from other banks or lender if your lending company is not providing you the loan. Negotiate with your lender to get best offer on your home loan.