8 Essential Documents You Need to Secure a Home Loan in India

A home loan requires a lot of documentation. The effort that application, gathering of documents and finalizing on a lender can be tiresome. Unfortunately, documents are the core of your home loan application. And if you are applying for a home loan, you will have to go through a challenging procedure of submitting a variety of documents essential to the process of getting a home loan.  However, as tough as it sounds, there’s also no denying that all the effort a home loan requires is worth it for a dream house.

We understand how documentation can seem impossible. That’s why we’d like to help you prepare for your home loan and the document you will need to apply for one. This guide will help you know about 8 essential documents required for a home loan.

1. Utility bills

Your utility bills serve as a proof of current address. Save on electricity or telephone bills that have your name and current address on them. Try to gather multiple recent bills so you can apply to numerous lenders. 

2. Aadhar card, PAN card or a proof of identity

A lender will need to verify your legal identity. That’s why your home loan application would be incomplete without identity proof. Therefore, make sure you have a proof identity required by the lender you are applying to. The best way to find out which identity proof a lender accepts is by visiting the home loan section on their website. 

3. Financial details

Every lender will need a background of your finances and monthly earnings to determine if you will be able to make monthly repayments. Lenders will usually check if 40% of your monthly take away income can become your home loan EMI. Salaried individuals will have to submit their last three salary slips along with Form 16, whereas self-employed people will have to present their bank statements of up to a year. 

4. Proof of age

While an identity proof will establish your legal citizenship status, lenders also require a proof of age. That’s because age also plays an important factor in determining your eligibility for a home loan. Your proof of age can be your Voter ID, ration card, or Driver’s license. 

5. Proof of employment

A bank or an NBFC (non-banking financial corporation), will not grant a loan based on a proof of income. As a result, a lender will ask for proof of employment. For salaried people, this will include their offer letter and other company documents. On the other hand, self-employed individuals will have to submit their business license and other legal documents of their business to showcase their employment status. Proof of income and proof of employment are crucial to your home loan application. So, make sure you have arranged for them from concerned authorities before you begin the application process. 

6. Experience certificate

There are various methods through which a lender will assess your ability to repay your home loan. One of these includes trying to predict your employment security after taking a home loan. And one way a lender will try to estimate your job security is by analyzing your previous work experience. Which are salaried applicants will have to submit their experience letter along with their application. 

7. Sanction letter and payment details of existing loans

If you have a pre-existing loan, you will have to showcase it on your application as well as submit its sanction letter. With a sanction letter, you will also have to submit your payment track record to the lender you are applying to. 

8. Proof of office ownership 

While salaried applicants have to submit proof of experience, self-employed persons who own an office or a shop need to submit documents related to the property for their home loan. 

There you go! Those were must-have documents while applying for a home loan. Apart from these documents, you will also need a passport size photograph, other primary documents as well as a fully-filled loan application form. This form should mention your basic details, the property you are would like to buy with the home loan, and the total amount you would like to borrow. 

We advise you to gather all these documents after finalizing a property and then apply for a loan. Avoid running around for these documents while in the middle of your application process. Moreover, before you apply to a lender, make sure you explore your options in the home loan market. Compare interest rates and repayment terms before settling on a lender. 

One of the best ways to let lenders find you so that you can get your pick from banking and non-banking lenders is to head to ApnaPaisa.com. Know everything you need to about home loans and more on the website. Millions of home loan applicants already trust ApnaPaisa.com to help them get a home loan for their dream house. 

What are you waiting for? Your dream house is one home loan application away. Gather the documents mentioned above, head to ApnaPaisa.com and start your home loan process today!