The decision to become a homebuyer is an important one. Those planning to secure home finance must read extensively about the home loan eligibility criteria and the substantial paperwork required for these loans. This brief guide provides readers with detailed information on the documents required for home loans, covering all essential housing loan requirements.

Documents Required for Home Loans

Documents to be Submitted with the Home Loan Application Form

These are the documents you will need to submit with your home loan application. 

• A properly filled home loan application form along with the applicant’s passport-size photographs
• Identity proof documents, such as PAN, Aadhar, driver’s license, passport, voter ID
• Mandatory documents, such as a PAN card or Form 60
• Age-proof documents, such as PAN, Aadhar, birth certificate, driver’s license, etc. 
• Address proof documents, such as Aadhar, passport, utility bills, driver’s license, etc. 

Documents Required for Home Loans for Salaried Applicants 

If you are a salaried individual who meets the home loan criteria, here is the list of documents required for home loan to complete your application process.

• Your employer certificate that provides details about your employer and confirms details of your employment
• To assess your repayment capacity, your lender will also ask you to submit the last 3 to 6 months’ salary slips
• Your lender may also ask you to submit salary account statements to ensure you have a stable income and can repay the loan comfortably
• You may also be asked to submit investment proofs under this category

Home Loan Documents Required for Self-employed Applicants

If you fall under the category of self-employed applicants, here are the documents you will need to submit to be considered eligible. 

• To start with, you will need to submit business address proof documents, such as your lease agreement or a utility bill
• Lenders will also ask you to submit the last 3 years’ income tax returns and company balance sheets. These documents will help the lender establish if your business is profitable and you will be able to pay your loan EMIs comfortably. 
• Also keep ready with you your company’s profit and loss statements, relevance licenses and certifications, and registration certificates

Property Documents Required for Loan Against Property 

If you are applying for a property loan, you will need to submit the following property documents: 

• No objection certificate from your builder or society
• Original sale deed or agreement of sale along with the allotment lender
• Lenders also ask for the occupancy certificate and maintenance and utility bills
• Also keep ready with you proof of land tax payment and any document that establishes ownership verification. 

Loan against property applicants must keep in mind that this list is comprehensive, but lenders may request additional documents during the home loan process. To navigate the application smoothly and avoid any last-minute surprises, ask your lender for a full list of the documents required for home loans. Keep all the documents ready with you to enjoy a hassle-free loan application process. 

What Happens If You Do Not Have All the Required Documents? 

The paperwork for home loans is complex. Housing finance involves substantial loan amounts and therefore, the risk for lenders is high. To eliminate high-risk borrowers from the application process, lenders ask for documents that establish a loan applicant’s identity, income, and ability to repay loans on time. Therefore, providing all the required documents for home loans is important. If you miss an important home loan document, your application can get rejected. This is why it’s crucial to meet the home loan criteria and submit the necessary paperwork to ensure your application is processed smoothly.

Final Words

The home loan application process is time-consuming and can take up to a few weeks. Keeping all the documents required for home loans will help you navigate the entire process quickly. It will also enhance your negotiating power and ability to ask for beneficial loan terms and conditions. Home loan borrowers must also use online tools, such as the home loan eligibility calculator and the home loan EMI calculator, to plan their repayment journey and make the right decisions related to their loans. Further, make sure to meet the home loan criteria if you wish to be approved quickly.