Last Updated on April 9, 2023 by Tabraiz
Getting a Home Loan is a cumbersome process. It involves a large loan amount, so several steps are taken to ensure everything happens smoothly. The process involves more documentation than an unsecured loan. Original copies of all the documents will come in handy during the loan application process. Post using the Housing Loan calculator, you can apply for a Home Loan.
The process might take 4-5 days. Hence, it would help if you were well-prepared for the entire process. Try to make a list of things that you will need during the loan application process. Also, keep all the original documents in a folder to ensure that you don’t miss out on anything. Read on to learn about the essential documents required during the Home Loan application process.
Importance of Original Documents in the Home Loan Process
The banking institution will ask you to furnish some original documents like –
- PAN card
- House documents
- And more
There are several reasons why a banking institution asks for Home Loan documents. Some of them are shown below –
- To verify your identity and complete the KYC. Identity verification is necessary as banking institutions are pretty prone to fraud, etc. Therefore, the banking institution should be confident that you are the person you claim to be.
- To safeguard itself from fraud, the banking institution asks you to submit all of your Home Loan documents for verification. Post verification, the banking institution decides if the loan application should move forward.
The Documents Required During the Home Loan Application
You need to carry the original and the photocopies of all the documents as the lending institution prescribed. Ensure that you have valid and original documents. If the banking institution finds the documents are fake, the loan application will be cancelled immediately, and you may be taken to the police.
Here’s a list of all the mandatory documents you must carry when applying for a Home Loan.
Documents Related to Property
As you are applying for a Home Loan, you must support your request with the details of the house that you want to buy. You need to have original copies of all the property documents to ensure that the lending institution can verify all information and check the authenticity of the documents. Some of the mandatory property documents include:
- The sales deed, along with the letter of allotment
- No objection certificate from the builder/ housing society
- Certificate of possession
- Land Tax Receipt
- The proof of payment made to the seller for the house
- Certificate of occupancy (in case of apartments)
Once the policy documents are checked, the banking institution will register you into their system. They will need your identity proofs or KYC documents for the registration process. You can furnish any one of the documents listed below:
- Aadhaar Card
- PAN Card
- Driving License
- Voter ID card
Additionally, you must also provide a relevant address proof to the banking institution. You can use any one of the following listed below:
- Any KYC document containing your permanent address
- Electricity bill
- Property tax receipt
- Telephone bill
All of these support the address you gave during the loan application process.
If you are self-employed and are looking forward to getting a Home Loan, you will have to furnish some additional documents. For instance, if you have a business, you need to submit the following documents:
- GST Certificate
- Articles of Association
- ROC Registration Certificate
You must also carry the partnership deed if you are a founder of a partnership firm. You must submit the business’s financial statements, such as the Profit Loss statement. The banking institution will also ask you for your account statement for the last six months.
Documents play a vital role in the loan application process. Hence, you should ensure that you bring original copies of the documents along with their photocopies. Once your original documents are verified, the loan amount will be credited to your banking institution account in 3-4 days. Once you receive the payment, use a Housing Loan calculator to calculate your EMIs.
Apart from this, if you want to know about Benefits Of Refinancing Your Mortgage And Home Loan then please visit our Finance category