When you think of buying your own house, we’re sure that like others having a similar dream, it will be exciting for you too. It’s a big check on your milestones in life. But let’s also be realistic at the same time. While purchasing a house seems thrilling, the paperwork can spoil the thrill. Paperwork related to house purchases and home loans is similar to a puzzle. Finding the pieces that fit seems difficult initially, but it becomes a beautiful picture when you get them all together in one place!
So, let’s stop thinking about it and get to work. We’ve created a list of documents that you should have in place when you approach a lender for a home loan.
List of Mandatory Documents Needed by All Applicants
Who you are?
These are the documents that prove your identity. Examples are:
Aadhaar card
PAN card
Passport
Driving License
Voter ID
Where you stay?
These are the documents that prove where you stay. Examples are:
Aadhaar card
Utility Bills
How much you earn?
These are the documents that prove your source of income. Examples are:
Salary slips
Form 16
Bank statements
Income tax returns
Profit & Loss statement, balance sheets & business licenses (for self-employed only)
What’s your financial health like?
These are the documents that show your spending and saving habits. Examples are:
Bank Statements
Investment details
Credit card Statements
What property are you buying?
These are the documents that show what property you are purchasing. Examples are:
Property agreement
Title deed
Property tax receipts
No Objection Certificate (NOC)
Building plans and approvals (for properties under construction)
Additional Documents Based on Your Situation
These are the documents whose requirements arise based on your current situation. You usually need to confirm whether you’re a salaried employee or a business owner, as the documents required by both differ to a certain extent when it comes to getting a clear understanding of your financial stability. This may also arise in cases where more than one person is applying for a home loan. In such situations, you would have to ensure they arrange for their documents, as mentioned above, before approaching any loan lenders.
Employment Verification: A letter from your current employer is required to confirm that you are employed with them, including the duration of your employment and your salary slips as well.
Co-applicant Information: If you have a co-applicant for the home loan you want to apply for, then they too would be required to procure the mandatory documents and few additional documents as needed.
Property Valuation Report: A professional estimate of the property's value.
Loan Agreement: The final contract between you and the lender, outlining the terms and conditions of the loan.
How to Organize all the Required Documents?
Create a Comprehensive Checklist: This will help you track the documents you've gathered and those still needed.
Maintain Digital Copies: Scan important documents for easy access and backup.
Verify Accuracy: Ensure all documents are correct and up-to-date.
Start Early: Collect documents as soon as you consider a home loan.
Getting a home loan doesn't have to be a headache. By staying organised and knowing what home loan documents to gather, you can focus on picking out paint colours instead of stressing over spreadsheets. Remember, every lender is different, so double-check their specific requirements. But with this guide as your starting point, you're well on your way to conquering the paperwork jungle!
Disclaimer: This article is published in association with Piramal Finance and not created by TNM Editorial.