What is the list of documents required for a Home Loan for different occupations?

Everyone wants to live in a house they own without depending on the mercy of relatives and landlords. They have some goals and expectations to fulfil and lead a secure life after retirement. It is essential to have some property under ownership as an asset to cherish. Life becomes easier when you start investing to earn returns.

You can always apply for a Loan to buy a new house by filling out the application form and submitting the relevant Home Loan documents to the bank. Conduct thorough research, as it is a long-term commitment and life decision. Here is the list of standard documents to submit:

• Filled out Loan application form
• Passport-sized photographs
• Identity proof documents, including PAN Card, Passport, Driving License, Voter ID Card, etc.
• Residence proof like an electricity, water, or telephone bill, a ration card, or any other government-issued ID proof
• Copy of the Bank Account statement/passbook entries for the past six months
• Signature identification proof from current bankers
• Statement of personal assets and liabilities

There are various professions available these days, including self-employment and those that receive a salary from an organisation. They also need to own a home and fulfil their dreams. You also need to submit your documents while meeting the bank’s eligibility criteria and other conditions.

Salaried individuals:

1. Original salary certificate from employer/Last three months’ salary slips
2. TDS Certificate of Form 16 or a copy of Income Tax Returns for the last two fiscals
3. Proof of job stability
4. If the salaried employee has changed jobs in the last year, they need to submit copies of the offer letter and joining letter of the new company

Self-employed individuals:

1. Acknowledged copies of the Income tax returns for the previous three months
2. Photocopies of challans as proof of advance income tax payments
3. Proof of business continuity

Banks will not approve the documents without assessing the borrower’s financial background, repayment capacity, and the legality of the property, among other factors. They review your statements, savings, transactions, investments, credit, repayments, and bank balance. Along with that, they also see liabilities and Loans. If the cheques have bounced or been returned in the past, it can lead to ineligibility for a Home Loan.

Banks also see the net income and credit score. A score above 750 signifies a healthy credit score, which typically leads to lower Housing Loan interest rates. Likewise, they remain assured of the timely repayment of the Loan.

Conclusion

The Indian Home Loan market is diverse and dynamic, offering a range of options tailored to suit various needs and financial profiles. Whether you are purchasing your first home or refinancing an existing Loan, always keep in mind the importance of thorough research, budgeting, and seeking expert advice.

As you explore your Home Loan options, take the time to evaluate different banks, understand their offerings, and select a Loan that fits your financial situation and goals.