Home Loans

List of Documents Required for Home Loan in 2024

When applying for a home loan, there are several important documents you’ll need to gather to ensure a smooth and successful application process. These documents play a crucial role in assessing your eligibility and determining the terms and conditions of your loan. While the specific requirements may vary from lender to lender and the city, there are a few documents that are commonly required for processing a home loan in India. Keep reading to find the list…

1. Income proof

The first & foremost document that a lender would require from you is the proof of income. This may vary for salaried and self-employed individuals as for the former income proof includes monthly salary slips, employment letter or a salary certificate from the current employer and Form-16/income-tax returns (for the past 2 financial years).

Self-employed home buyers may need to provide business financial statements, profit and loss statements, income tax returns (typically for the past three years), and challans as proof of advance income tax payment.

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2. Credit history

Lenders will typically request a credit report from an authorized credit reporting agency to evaluate your reliability. This report will show your credit score, payment history, and any outstanding debts.

3. Bank statement

Additionally, lenders will request bank statements to verify your savings and check your financial stability. Typically, you’ll need to provide bank statements for the past six months to demonstrate your ability to make loan repayments.

4. Property documents

Documents related to the property you intend to purchase, including the sale agreement, property title deeds, valuation report, property tax receipts, and ownership documents. Submitting these necessary documents promptly can streamline the home loan application process and increase your chances of approval.

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5. Existing debts

If you have any existing debts, you may be required to provide documents detailing these obligations. These can be any other outstanding loans or financial commitments, such as car loans, student loans, or credit card debts.

6. Financial assets

If you have other financial assets, such as investments or savings accounts, you may need to provide supporting documents to demonstrate your financial stability.

7. Down payment proof

You will need to demonstrate that you have the funds available for the down payment, usually through investment account statements.

8. Identity proof

Any government-issued identification proof, such as a driver’s license, Aadhar card, passport, PAN card, or Voter’s card can be submitted.

9. Proof of address

This can be established through documents like rental agreements and utility bills, including electricity bills, ration cards, telephone bills, and bank passbooks or statements with addresses.

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10. Passport size photographs

Ideally, a lender requires 2-3 passport-size photographs for completing the home loan application. So, it’s suggested to get it clicked beforehand.

11. Employment history verification

A letter from your employer confirming your job position, length of employment, and income details. You may also need to provide previous employer details, job titles, and duration of employment.

12. Tax documents

This can include documents like your PAN card, Aadhaar card (for Indian applicants), or any other documents required by local laws and regulations.

It’s important to note that this is a general list, and the actual documents required may vary based on the lender’s policies, loan amount, and your specific financial situation. It’s recommended to consult with your mortgage advisor to get an accurate and up-to-date list of required documents for a home loan application in your city in 2023.