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 to apply for a home loan. Read on!
Here is a list of documents for a housing loan that applicants must provide for verification:
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.
The list of property-related documents for a housing loan may include the following:
All the above listed documents for home loan should be furnished in time. If the lender notices any discrepancies 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.
Documents required for a home loan 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.
Ans: In addition to property papers, and personal and income-related documents, individuals need to submit documents related to the existing loan. They include the following:
Loan agreement letter
Home loan statement
Existing loan providers’ approvals (NOC, foreclosure letter, and No Objection Certificate)
Make sure to keep these documents ready. To enjoy a substantial reduction of interest rates of up to 5%, opt for the balance transfer facility from Navi Finserv Ltd.
Ans: Usually, if you take a home loan from a bank where you have your salary account too, you may not need to submit any documents.
Ans: Usually, an individual should earn at least Rs. 25,000 as monthly salary to avail a home loan. However, it may vary depending upon the loan provider.
Ans: For NRIs, the additional documents required for a home loan include the following:
General power of attorney
Valid work permit
Copy of work visa along with passport
Proof of overseas residence
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