Home Loans: List Of Documents Required

Home Loan

Home loans are secured loans. Meaning, that the purchased property stays as collateral with the lender until the loan is repaid to the lender. Since home loans are a secured form of financial credit, documents such as property papers, identity proof, and income proof, are required to be submitted. This post lists all the necessary documents required for home loans.

Different lenders have different requirements or set of documents they would need for processing a home loan. Here is a compiled list of some important documents needed during the loan application process.

List of Documents Required for Home Loans

Here is a list of documents for a housing loan that applicants must provide for verification:     

• Government-issued identity proof of the primary borrower as well as co-borrower (if any)
• Address proof issued by the government (voter ID card, Aadhaar card, passport, driving license, etc.)
• Last 6 months’ bank account statement 
• Property-related documents
• Duly signed application form with photograph
• Signature verification
• Liabilities statement and asset details
• Form 16 (for salaries)
• Last 3 months’ salary slips (for salaried)
• IT returns for the last 3 years (for self-employed)
• Proof of business address (for self-employed)
• Challans as proof of Advance Income Tax payment (for self-employed)
• Business License (for self-employed)

Income Related Documents Required for Home Loans

The list of income-related documents required for a home loan varies slightly for salaried professionals and self-employed individuals. 

For instance, in addition to the list of documents for home loan mentioned above, salaried professionals must provide the latest salary slip and Form 16 as income proof.

In contrast, self-employed people have to submit proof of business existence (GST registration certificate, trade license, etc.) and CA-audited financial statements (balance sheet and profit and loss account statement) and disclose their source of income.

Based on the income documents, a lender will compute the borrower’s eligibility. There are some other factors that influence a borrower’s eligibility, such as value of the property to be purchased, location and age of the property.

The documentation process for a home loan can be quite tedious. Nevertheless, individuals can opt for home loans from a lender that ensure a hassle-fee application procedure. 

In this regard, Navi provides instant home loan approval in less than 5 minutes via a streamlined, fully digital process. To complete the application process, one needs to download the Navi app on Android or iOS and simplify the borrowing experience.  

Also Read: Home Loan Sanction Letter: Sanction Process, Benefits & Documents Required

List of KYC Documents Required for Home Loans

You may also need a host of documents for KYC:

1. Photo ID proof: Passport, PAN, Driving License, or Voter ID card
2. Age proof: PAN card, passport, birth certificate, or marksheet from 10th standard
3. Residential proof: Electricity bill, telephone bill, ration card, or passbook

Property Documents Required for Home Loans 

The list of property-related documents for a housing loan may include the following:

1. Sale deed or Sale Agreement or Share Certificate for cooperative society
2. Allotment Letter from Society/Housing Board/Private builder
3. Approved building plan (showing floor plan for flat purchase)
4. Certificate of Non-encumbrance for the last 12 years/30 years
5. Advance payment for purchasing of flat receipt
6. Land tax repayment receipt
7. No Objection Certificate or NOC from builder or housing society
8. Receipts for taxes paid for Building and Land, certificate of possession, and certified sketch of the location of property from revenue authorities.
9. A report stating the valuation of property
10. A detailed estimate of cost of construction
11. Letter from builder/housing society board mentioning their bank details for instalment remittance
12. Documents required for handover of original property documents
13. Letter requesting handing over of Property documents from Legal Heir/Nominee(s).
    

Also Read: TDS on Purchase of Property: Meaning, How to Pay Via Challan 26QB And Penalty for Non-Payment

Importance of Documents Asked While Applying for Home Loans 

All the above listed documents for home loan should be furnished in time. If the lender notices any discrepancy in the documents, they have the right to reject your home loan application. You have to repay your home loan in Equated Monthly Instalments (EMIs) over a period of time as decided by the lender. 

To have a better perspective on how much you have to pay every month, you can use the Navi online home loan EMI calculator. This online calculator will help you compute the EMI (principal and interest amount) payable for each month so that you can plan your finances accordingly. You can also use an online eligibility calculator as well to determine the loan amount you are eligible for.

Also Read: Home Loan Insurance: Eligibility and Benefits

Final Word 

Documents required for home loans are crucial for securing approval. Make sure to keep the required personal and property-related documents at your disposal before initiating the application procedure. It’s advised that you stay informed regarding requirements related to home loan eligibility to ensure a hassle-free verification process. Note that the documents required for home loan are more or less the same across various financial institutions. However, a lender may ask for certain additional papers, if needed.

However, with Navi Home Loans, the entire process is seamless. You won’t need tons of paperwork if you are applying for a home loan with Navi. All you need to do is download the Navi app and get an instant in-principle approval for you home loan with your PAN and Aadhaar number.

FAQs on Documents Required for Home Loans

Before you go…

Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 7.89% p.a.

Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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