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Checklist - Documents Needed For Your Home Loan Application

Applying for a home loan is a fairly document intensive process. Here is a checklist that can help you prepare for the your home loan application.

1. Three month salary slips: If you are a salaried person, you need to provide the lender salary slips for the past three months as proof of employment. In case you are self-employed, you need to provide the lender year-to-date profit and loss statements of your business. Some lenders might require these documents for an additional period if they want to get greater comfort around your earnings profile.


2. Six month original bank statements: You need to share original bank statements of the last six months for the lender to see your income and expenses. Some lenders might ask for statements for additional months.


3. Form 16 and income tax returns: You need to provide the lender your Form 16 that you received from your employer for the past three years. This document is evidence of the salary earned by you and the tax deducted by the employer. If you are self-employed you will need to submit copies of your income tax return filed for the past three years.


4. Residence proof: The lender will require residence proof from you for the purpose of verification. This address will also be used for corresponding with you during the course of the application.


5. Identity proof: The lender needs proof of your identity to verify that you are indeed the person applying for a loan. By identifying you, they will also be able to track your credit history. As identity proof, you can give any of these documents - your driving license, voters ID, PAN card, passport, ration card, or bank passbook.


6. Passport size photographs: Your passport size photographs need to be attached to your loan application request. A minimum of at least two photographs are needed, however, it can be more depending upon the lender's requirements.

In case you have finalised the property for which you are taking a loan, you need to be prepared with the following documents:

1. Allotment letter: The allotment letter from the developer/builder needs to be submitted to the lender as a proof that the property belongs to you. This letter is given from the builder's side and contains details regarding the agreed price, payment and construction schedule, and builder's liability in case of late completion or problems after possession.


2. Original receipts of the payments that you have made to the builder: The lender also requires the original receipts of the payments that you have made to the builder so far. Before the lender disburses the loan amount to you, you need to share with them details of all the financial transactions between yourself and the builder.


3. Agreement to sell: The lender also needs from you the original sale agreement between the builder and you. The sale agreement includes the name of the party to whom the property has been sold, the sale price and the effective date of the sale.


4. Demand letter from the builder's side: Since the lender has to make payments in favour of the builder, they need to have a letter from the builder's side demanding the payments towards the property.


5. Approved plans and clearance certificates: For a self-constructed property, the lender will require an approved plan from the relevant municipal corporation, clearance certificates and cost estimates from the architects. In case of a resale property, the lender will need ownership proof, registry copy, and the original sale deed.

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