With interest rates dropping in recent times and banks offering festive discounts on Home Loans, this may be the right moment to apply for a Home Loan. If you are planning to opt for one, proper documentation is one of the primary requirements to start applying for a Home Loan.
Proper documentation is an essential part of the Home Loan application process, and interestingly, most people do not give it much importance. By the time they realize their mistake, it’s usually too late and the Home Loan gets rejected by the bank due incorrect or incomplete documentation.
Checklist for Home Loan Applications
For all those salaried and self-employed individuals out there, here’s a handy Home Loan document checklist which could help!
1: Identity proof: Irrespective of whether you are a salaried or self-employed person, you will need to furnish your identity proof with the bank. You can submit any of the following documents with a photograph issued by central or state government agencies like:
- Voter ID card
- Passport
- PAN card
- Driving license
- Ration card
- Bank passbook
2: Address proof: You will have to submit address proof confirming your present residential address when you apply for a Home Loan. You can also submit any of the documents accepted under KYC norms or any utility bills like telephone, water or electricity. A letter from a recognized public authority like the Municipal Corporation verifying your current residential address would also do.
3: Age proof: Although ‘age is just a number’ as the popular adage goes, you will have to submit your age proof document at the bank since Home Loans are offered to individuals only within a certain age bracket. Any KYC acceptable document, which has your date of birth listed, can be submitted as your proof-of-age document. Even your matriculation certificate, which has your date of birth mentioned, would do the trick.
4: Income Proof: While age, address and identity proof may be considered more of a formality, it is the income proof document which would make or break your Home Loan application.
Depending on whether you are a salaried or self-employed individual, you will have to submit the following proof of income documents:
If you are salaried:
- As a salaried individual, you will need to furnish a copy of your latest salary slips (3-6 months depending upon the bank) or salary certificate
- Form 16 and copy of ITR as applicable is required
- In case you got a job recently, then a copy of the appointment letter would be required
- If you have got a recent hike in salary, increment or promotion letter, those also need to be submitted as and when applicable
- Additionally, you will also have to submit your bank statements for the last 6 months
- If you have any existing or a recently closed loan, you need to submit the documents
If you are self-employed:
As a self-employed individual, you will need to submit the following documents:
- A brief introduction of your business or profession
- Last 3 years ITR, all certified by a chartered accountant
- Balance sheet, profit and loss account statement of your business
- Copy of the registration certificate under the Shops and Establishments Act or Factories Act; whichever is applicable.
- MoA / Partnership deed etc. as applicable
- Copy of lease agreement of the office
- Additionally, you will also have to submit your bank statements for the last 6 months
- If you have any existing or a recently closed loan, you need to submit the documents
Now that’s a complete list of documents that you will need to keep handy when you plan to apply a Home Loan.
Additionally, irrespective of whether you are a salaried or self-employed individual, you need to keep your Income Tax Return documents spanning the last 2 to 3 years handy. These documents need to be duly acknowledged by the I.T. Department.
Keep the Home Loan processing fee ready too in the form of a signed cheque since you will require it at the time of submitting your Home Loan application.
Well, that’s the complete list of documents you will require to apply for a Home Loan. Note that the document list could vary from bank to bank.
Additional reading: All you wanted to know about Home Loan eligibility