Essential Documentation When Taking a Home Loan

 

With the booming real estate market and easy availability of home loans, getting your documents

in order is half the battle won. If you have found your dream home and are eligible for a loan that

can help you buy it, there are several documents you need to prepare for evaluation and approval.

Regardless of the bank you approach, the list of essential documents is more or less the same.

However, it is wise to confirm the necessary documentation in addition to the ones listed below.

Here is a concise list of documentation you should prepare during the home loan process.

Proof of identity

Proof of identify is a very common document you need to produce at the bank. While some

banks are lenient about identity proof, others insist on specific documents only. To avoid taking

a chance, ensure that you have filed and taken attested copies of all identity proofs like passport,

voter’s ID, driving license, ration card (if applicable), PAN card, passbook, employee ID etc. It

is also a good idea to receive a written letter of verification from a notarized authority or a public

servant and confirmation letters from your employer or other banks where you hold accounts.

Proof of age

Age proof is often found in the same documents as name and identity and is mentioned in the

date of birth. Ensure that your date of birth is printed correctly on your documents and keep

notarized copies with you. As proof of age, you should submit documents like passport, PAN

card, birth certificate, bank passbook, driving license, and your 10th grade mark sheet.

Proof of address

Address proof is an important document as all future communications will be sent to your

address, be it in the form of a letter or a bank representative. You can submit many documents

to account for your address. These documents can include passport, ration card (if applicable),

driving license, voter’s ID, bank account statement, insurance policy receipts, utility bills (water,

electricity, gas and/or telephone) etc. As with identity proof, you should get a signed and

attested confirmation letter from your employer and/or public servant.

Proof of income

If you are a salaried employee, ensure that you submit your latest pay slip, your appointment

letter, promotion or increment letter, Form 16, income tax returns, photographs, salary account

bank statement for at least two months, and a certified letter from your employer. If you are

a self employed professional or businessman, you should produce a written introduction of

your profession or business, a balance sheet, a profit and loss statement, tax payment receipts,

certification of practice, any bank loan receipts, proof of investment etc.

Property documentation

If you have purchased the flat from a builder, ensure that you submit the original copy of the

agreement, the property register card, development agreement, partnership deed, building

completion certification, commencement certification, sanctioned building plans etc. You should

also include a copy of the latest tax receipts you paid towards the flat or land as well as the

Search Report and Title Certificate.

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