Documents Required for a Home Loan

If you are looking to buy a house but are worried about finances, don’t be! It’s extremely simple to get a home loan these days. In order to be eligible for a home loan, the lending company or bank will need to know that you are able to pay the loan amount back and that you will default.

Just to ensure that the money they lend you is in safe hands; they will need to look at a few documents before sanctioning a loan. Here is a home loan documents list that includes all the paperwork that you need to submit, including ID proof, address proof and proof of financial status.

You can use this blog as a housing loan documents checklist when you are applying for a home loan.

Proof of Identification

For this, you can submit a copy of any one of the following –

• Electoral ID Card
• Passport
• Driving License
• PAN card
• Aadhaar Card

Proof of Residence

For this, you can submit any one of the fowling – 

• Electoral ID Card 
• Passport 
• Electricity Bill 
• Telephone Bill

Keep in mind, the electricity bill and telephone bill will have to be in your name and not in your parents or landlord’s name. If this is the case, use another document as residential proof.

Bank Account Statements

You will need to provide attested printouts of your bank account statement for at least 6 – 8 months. If you have more than 1 bank account, you will need to provide statements from those accounts as well.

Proof Required from Salaried Professionals

Here is a list of documents that a salaried person should submit when they are applying for a home loan -

• ID card copy
• Employment Appointment Letter, this is required only if you have been with the company for less than a year.
• Salary slips for the last 3-6 months
• Form 16 (for at least 2 years)
• Increment letter or Offer letter with CTC mentioned
• IT Returns

IT returns are needed by salaried professionals as well as non-salaried professionals. You will need to submit 2-3 years of IT returns if your salary falls under the tax bracket.

If you are a non-salaried professional, you will also need to show proof of Advance Income Tax in the form of challans.

Proof of Business Address

This is key for non-salaried professionals. You will need to submit proof of address like an electricity bill, phone bill and so on.

Proof of Age

Most lending banks and financial organizations have a cut-off age. They don’t approve loans for those applicants that are over 60-70 years old. This is usually because retirement happens at this age and their ability to repay the loan amount diminishes. Applicants over 45 years also have limitations on the tenure of loan repayment options to choose from. In order to prove your age, you will need to submit any one document–

• Aadhaar Card
• PAN Card
• Passport
• Birth Certificate
• 10th Class Marksheet
• Driving License

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Documents that NRI Applicants Need to Provide

Here are some of the documents required for home loan approval that you may be needed to produce when in India:

• KYC documents 
• Your Salary Certificate from your employer that confirms your information as per your designation, passport, latest salary, date of joining etc. 
• Your Latest Income Tax returns
• The Salary Slips of the last 3-6 months including overtime, bonuses etc. 
• Copy of your passport with the residence visa page
• Employment proof from the government of the country NRI is residing in such as a labour contract or work permit
• For self-employed individuals, you will need to share your trade license, power of attorney, sponsor agreement etc. 
• For salaried individuals, you will need your income documents properly attested from the embassy official in case you do not have documented proof for your salary credits or remittance to India. 
• Property documents including cost estimates from an Indian engineer or architect
• Latest 6 months’ bank statements of your NRO/NRE accounts
• The final loan approval document when needed in the future
• If you, the NRI is unavailable at the time of document signing, your Power of Attorney will need to be shared by the person who is acting on your behalf

Documents that Self-Employed Applicants Need to Provide

Here is a list of documents that a self-employed applicant should submit when they are applying for a home loan:

• Identity proof documents for KYC(Know Your Customer) such as
  • PAN Card
  • Electoral ID aka Voter ID Card
• Income-proof documents such as
  • Income returns,
  • 6 Month bank statements.

Vital Documents to Keep When Applying for Home Loan in 2024 in India

Apart from the loan application, the following documents are particularly important in 2024 for home loans. These would be more or less the same even for LIC housing loan eligibility and documents.

• 3 passport-sized pictures
• Proof of identity
• Proof of residence
• Last six months' bank account statement/passbook
• The applicant's signature is verified by his or her banker.
• Personal Assets and Liabilities Statement
• Detailed property documents
• Employer's salary certificate (original). (Individuals with salaries)
• Returns on Form 16/IT over the previous two fiscal years. (Individuals with salaries)
• Copies of the last three years' IT returns/assessment orders. (For professionals who work for themselves)
• Challans as payment of advance income tax. (Professionals who work for themselves)
• Non-salaried persons must provide proof of business address. (Professionals who work for themselves)
• Copies from the last 3 years IT returns/Assessment Orders. (Self-Employed Entrepreneurs)
• Challans as proof of payment of advance income tax. (Self-Employed Entrepreneurs)

Note that the above will be more or less true for all banks, regardless of whether it is HDFC home loan eligibility documents or even SBI home loan eligibility documents.

Documents Required from the Builder

To ensure there is nothing wrong with the building you’re buying, lenders require certain proof such as –

• NOC
• Occupancy certificate
• Sale Deed or Allotment Letter or Stamped Agreement of Sale with the Builder
• Property Tax receipts and proof of bills paid
• Approved building plan
• Detailed break up of cost

Depending on which lender you choose, you might have to provide more proof on request.

Pictures

Along with the documents, you will also need to submit 3 high-quality, recent, passport-sized pictures.

Complete Home Loan Application form

The loan application form will vary from lender to lender. If there are any doubts, it is best to contact the loan agent for assistance. Ensure there are no errors between what you fill in the form and the documents you submit. If there is a difference, then there is a high chance that the loan will not be approved.

All the best with your home loan! And, if you’re still looking for that dream house, visit NoBroker and choose from 1000’s options. The best part is, that you can even get a home loan from us. Visit us to know more.

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