Keep these nine documents handy during homebuying process

 Keep these nine documents handy during homebuying process

Here’s a list of essential legal documents to keep within reach during the home loan process for a seamless journey ahead

The documents needed to apply for a home loan often differ from lender to lender and can depend on various factors such as the loan amount, the applicant’s background, and the property being financed among others.  Here’s a handy list of essential documents commonly requested by most banks and financial institutions during a home loan application:

Application form: The first step is to fill out the loan application form provided by the lender;

Photographs: Recent passport-sized photographs of all applicants;

Identity proof: Any one of the following documents can be used as proof of identity:

• Aadhaar card

• Passport

• Voter ID card

• Driver’s license

Residential address proof: Any one of the following documents can be used as proof of address:

Any one of the following documents can be used as proof of address:

• Aadhaar card

• Passport

• Voter ID card

• Utility bills (electricity, water, gas, or telephone) in the applicant’s name

• Bank account or post office account statement

• Property tax receipt

• Rent agreement

Income proof: To establish your repayment capacity, you will need to provide documents related to your income. This can include:

• Salary slips (last three-six months) for salaried individuals

• Income tax returns (ITR) for the last two-three years

• Form 16 or Income Tax Assessment Order

• Business income proof for self-employed individuals (balance sheets, profit and loss statements, and tax returns)

Bank statements: Bank statements for the last six months to one year to track your financial transactions and assess your financial stability;

Property documents: Documents related to the property you intend to purchase;

Personal documents: Additional personal documents may be required, such as marriage certificate (if applicable), divorce decree (if applicable), etc.

Guarantor documents: If you have a co-applicant or guarantor, their documents may also be required.

The requirement of documents can also differ depending on the policies of the lender and the type of loan you are seeking (such as fixed-rate or floating-rate). To ensure you have an accurate understanding of all the necessary documents, it is always recommended that you reach out to the lender or financial institution where you intend to apply for a home loan and get all your doubts cleared. They will be able to provide you with an up-to-date and comprehensive list of required paperwork and other important things involved in the entire process.