You usually take a home loan either for the acquisition of a house or a plot of land for the building of a house or for the renovation, expansion, and repair of your existing house. One of the ways to ensure that your loan is approved easily without any kind of complications is to confirm that you have all the documents required for home loan in order.
Good documentation lets credit officers easily determine eligibility and process the working smoothly. To support you, here’s a rundown of all the documents required for home loans and property loans (LAP). Please read this exceptional home loan guide carefully and learn a few points before and during your home loan application.
The Ultimate Home Loan Checklist
Purchasing a property is a once-in-a-lifetime experience and you want the home loan procedure to be as seamless as possible. If you want your loan to be approved easily and efficiently, make sure that you have collected all the documentation needed for your home loan.
#1. Understand if you are eligible
Just before beginning the home loan process, assess your overall eligibility, which will primarily depend on your ability to repay. The bank needs to make sure that you can pay back the loan on time. The bigger the monthly net income, the higher the value of the loan you are entitled for.
#2. Learn about the costs involved in taking a home loan
Once you get a home loan, you don’t just pay the EMI for the loan. There are some other charges, but not all of them apply to each case. A processing fee of around 0.5-1 percent of the loan sum may be charged. Often the lenders give it up. For certain high-value properties, two valuations are made and the lower of the two is deemed to be a fee for a loan. It is called a technical assessment fee by the lenders.
#3. Documents Required For Home Loan
- Filled in application form – Fill the application form with correct, complete and up-to-date information with photograph, duly signed by all applicants
- Identification/Age/Income/Residence Proof – You will need to attach a few of the following documents as a proof of identity, age, income & residence as requested by your loan officer.
- Driving licence
- Ration card
- Voter Id
- PAN Card
- Bank Passbook
- Employee Id
- Any utility bill (not older than 2 months)
- IT Returns
- Form 16
- Pay Slips (not older than 2 months)
- Increment/Promotion Letter
- Certified Letter from Employer
#4. Know the Tax Benefits on Home Loan
Of the overall annual EMIs, the key portion is the tax gain provided for in Section 80C of the Income Tax Act. Even a partial prepayment sum is liable for the same amount, but under the maximum limit of Rs 1.5 lakh under Section 80C.
The home loan process seems so simple, but it presents its own set of complexities. Holding these few main points from this home loan guide in mind will be a great way to get started. Besides that, never leave doubts in your mind, because it could create issues later on. To your satisfaction, make sure all is straightforward beforehand, and your dream home will be truly yours.