A home loan is that loan that opens the door to that ‘dream’. However, it appears to be a very tiresome process as it involves the complex list of documents required for a home loan that one needs to submit. To make the process a lot simpler and easier, here are the official documents required to complete your home loan.
What Documents Required For Home Loan
Borrower Information
Identification Proof: Submit original ID proof including an Aadhaar Card, PAN Card, Passport, Voter ID/ and Driving Licence, and these are compulsory.
Address Proof: As ID proof, Utility bills, ration cards, Bank statements with address proof, or a passbook (If the address on it is latest) can be used.
Proof of Income: Depending on whether you are working or not, the amount that can be claimed will differ. You are required to submit the salary slips for the last 3-6 months, form 16 for the latest period, and bank statements for the last six months. On the other hand, self-employed people will require certified financial statements for 2 years, Income Tax Returns (ITR) for the past 3 years, and business supporting documents like GST registration or trade license, etc.
Proof of Assets: This is not always necessary but documents like property papers, investment proofs such as share market investment a mutual fund, existing loan statements, etc. can add strength to your application for the loan.
Recent Passport-Sized Photographs: These are usually needed for the primary applicant and the joint applicant where the applicant is not alone.
Property Information
Property Papers: These include the title deed, the transfer deed, the approved blueprint, the occupancy certificate, and the NOC from the society (if any).
Agreement for Sale: This document gives the agreed terms and conditions of the property purchase between you and the seller.
Municipal Tax Receipts: These help to show your willingness to pay the property taxes.
Additional Documents
Loan Statement of Existing Loans: The other financial statement that may be required depending on the type of loan includes;- Normally for existing loans, providing statements assists the lender in evaluating the general credit position of the borrower.
Signature Verification: It is common to have some lenders requesting the banker’s confirmation of your signature on the loan application forms.
Processing Fee: A processing fee may be charged by the lending institutions depending on the costs incurred while considering your application.
Why not use a Home Loan Calculator with a Prepayment Option?
Once you are familiar with the documents, it is now time to begin looking at the choices. This is where a home loan calculator that incorporates a prepayment option proves useful. Such tools help to predict the monthly payments, the cumulative interest, and, on the nonce, the effects of prepayment of the chosen loan. Even paying a little extra off in advance can drastically lessen your interest payment and the length of your loan, making you save more money.
Conclusion
Getting a loan is a lengthy process and is associated with various documents required for a home loan. Therefore, always consult your selected lender since the specific set of demands might not be the same. First of all, do not overlook making use of a home loan calculator with prepayment option. This versatile instrument helps to consider various loan options and see the vast opportunities of making prepayments from the aspects of financial showing. Prepayment positively affects all the components of your loan repayment plan. When you are clear and have evaluated how it influences your results you can easily adjust and save more money which leads to attaining your dream home with no debt much earlier!
