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What documents are vital for home loan processing?

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What documents are vital for home loan processing?

The processing of a home loan application requires several documents to be successfully concluded. The procedures in this case are quite similar throughout multiple banks and financial institutions in the country. These are the documents which lenders need in order to process home loan applications-

  1. Age Proof
  2. Income Proof for applicant and co-applicant
  3. Address Proof
  4. Bank Statements for last 6 months
  5. Passport-size Photo of the Applicant and Co-Applicant

Salaried applicants also need to provide the following:

  1. Form 16 A or Salary Slip
  2. Photocopy of Ration Card first & last pages or Copy of Telephone/Electric Bill. PAN can also be submitted in this regard
  3. Photocopy of investments like fixed assets/shares/FD certificate or other documents backing up financial background of applicant
  4. Photocopy of LIC policy with receipts of last premium paid

Self employed individuals or businessmen have to provide the following:

  • Advance tax payment photocopy if available
  • Profit and loss account, balance sheet and income statement with IT returns for last 3 years (CA certified)
  • Registration Certificate for Establishment photocopy
  • Photocopy of Registration Certificate for Profession Tax deduction
  • Savings and Current account statements for last 6 months
  • Certificate of Practice photocopy if required
  • Photocopy of any bank loan that is already there
  • Photocopy of PAN/Electric bill/Telephone bill/Ration Card
  • Photocopy of LIC policy if it applies

These are the documents which are handy for applicants. Now, there are some property related documents that lenders need to see while processing a home loan application. In case you have bought an apartment from a real estate developer, you will have to provide the following papers:

  1. Builder agreement original copy
  2. Property register card or 7/12 extract of land which is under construction
  3. Builder agreement Index II extract
  4. Urban Land Ceiling Act order copy
  5. Land owner and builder development agreement
  6. Search and title report for last 30 years
  7. A. permission copy from collector
  8. Copy of building plans which have been sanctioned by requisite authority
  9. Completion certificate of building
  10. Latest tax receipts
  11. Memorandum of association of builder firm or partnership deed

In case you are buying a property in a cooperative society, the following documents have to be given:

  1. Society’s original share certificate
  2. Lease deed copy
  3. Registration of society document or certificate
  4. Allotment letter in name of borrower from society
  5. Copy of society byelaws
  6. Society’s No Objection certificate
  7. Property register card or 7/12 extract in name of society
  8. A. permission copy from collector
  9. Order under Urban Land Ceiling Act copy
  10. Copy of building plans sanctioned by requisite authorities
  11. Commencement certificate given by Nagar Palika or Corporation
  12. Latest tax receipts
  13. Original agreement for assignment deed/assign

In case you are building your home on land that you have purchased, you need to provide the original land sale deed and Index II extract. You also have to show the property register card in your own name and 12 extract. You have to provide the N.A. permission copy from the collector and the search and title report for last 30 years. You should also provide the order copy under the Urban Land Ceiling Act. There should be a copy of the building plans that have been sanctioned by the authorities. There should be the building permission given by the Nagar Palika or Corporation. The last tax receipts paid should be provided along with construction cost estimate as certified by an architect.

 

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