Several financial institutions are lending out home loans at interest rates as low as 6.6% in recent times. Thus, availing a home loan has never been more affordable. However, individuals need to know about the home loan documents they need to submit to avail of a housing loan.
Here are the documents for housing finance one needs to submit to avail of a home loan.
List of required home loan documents
Although various lenders demand different documents, a few requirements remain the same. These are listed below:
- A home loan application form duly filled by the applicant along with one passport size photo
- Proof of residence and can include a driving license or utility bills such as electricity, gas or water bill
- A photo identity proof which can consist of voter card/ PAN/ voter
- Proof of income and that includes salary slips, Form 16 or bank previous month’s bank statements
- Proof of residence ownership like rental agreement or sale deed
- In case the borrower’s employment tenor is less than 1 year, they need to submit a job offer letter
- Last 6 month’s bank statements
- Property documents such as transfer of ownership or sale deed or Katha
Apart from these, individuals have to submit financial documents like-
- Form 16, bank statements and last 3 month’s salary slip for salaried individuals
- Self-employed individuals need to submit IT returns for the previous 2 years. A chartered accountant certified computation of these IT returns is required.
- A chartered accountant certified computation of income tax for previous 2 years and 3 years IT returns document is required for self-employed non-professionals.
Besides knowing the documents required for home loan, individuals must also know the home loan eligibility criteria required. Knowing the documents and eligibility criteria can speed up the home loan process.
Eligibility criteria for availing of a home loan
The following are home loan eligibility criteria that an individual has to meet to avail a home loan.
- The borrower must be Indian by nationality.
- For salaried employees, the age criteria are 23 years to 62 years. However, the age criteria for self-employed individuals are 25 years to 70 years.
- In the case of employment status, salaried employees must have at least 3 years of work experience. Whereas at least 5 years of business continuity is required for self-employed individuals
- A CIBIL score of at least 750 and above is highly recommended while availing of a home loan.
- The lending institution will also check the borrower’s repayment history and income and then decide the loan amount to sanction.
- Apart from that, lending institutions would also check the property and its details and decide the loan amount according to market values.
Individuals can take the help of home loan eligibility calculators available online. These calculators are free to use and let individuals know about the loan amount they are eligible for. Knowing an approximate amount that individuals are eligible for, would let them plan their finances accordingly.
Other than home loan eligibility calculators, borrowers can also use home loan EMI calculator that is available online. with this calculator you can easily calculate EMIs beforehand would let borrowers manage their finances well. They can set a budget and work according to that. This way, they can manage their other expenses and loans as well.
Steps to use online EMI calculators
Step 1: Firstly, individuals need to visit the official website of lending institutions
Step 2: Borrowers need to choose the type of loan calculator they want. There are separate calculators for home loan, or any other type of loan.
Step 3: Upon clicking the calculator, they need to enter the loan parameters and amount
Step 4: Individuals can see the loan amount EMIs they need to pay
Using online EMI calculators lets borrowers compare and choose from a variety of lenders. They should always compare and check across these lenders and avail of home loan at the most affordable rates.
Apart from home loan documents and eligibility criteria, individuals must also know the home loan process in India. Other than that, if the borrower is a woman, she must know ways women can benefit from taking home loans. These benefits encourage more women buyers to avail a home loan.
Besides, financial institutions offer several pre-approved offers on various secured and unsecured loans. These offers simplify and accelerate the home loan process for customers. Borrowers can quickly check their pre-approved offers by entering their names and contact details on the websites of lending institutions.
To sum it up, a home loan is a long term commitment, and thus, borrowers should always check the home loan documents and other necessary things. This way, they can get the best offers and services and their home loan process would be smooth.