What are the documents required to apply for a home loan?

What are the documents required to apply for a home loan?

What are the documents required to apply for a home loan?

Buying a home can be very exciting, but just so you know, not everyone is capable of securing a loan, hence, if you cannot pay for your desired home in cash, might as well, assess whether or not you are qualified to submit all the documents required for a home loan before making yourself so excited spotting a home to purchase.

Some think that as long as they are earning enough, getting a loan is possible. Yes, your salary can be a deciding factor whether home loan companies like Agrim will approve your loan or not. Still, it is not the only factor they will look into when evaluating your application.

There are more documents required when getting a home loan simply because the amount involved in this type of loan is huge. If you are planning to apply for a home loan, it is best if you initially know what the bank or financial institution will ask.

When choosing an institution to secure a loan, it would be best to consider the one that does not require too many requirements.

The fewer their requirements are, the more convenient it is for you, and the higher the chance you can pass your home loan application.

Different institutions have different home loan requirements, but there are some requirements that are common to all of them. To provide you with some of the usual conditions you need to fulfill when applying for a home loan, read below:

Loan application form

Sure, for any loans you will apply for, filling out forms is recommended. Make sure that forms are completely signed up and that all information is clearly answered. Make your handwriting as negligible as possible. Avoid erasures as that will make your application look messy.

Photos

Photos are necessary and definitely a requirement. Submit your latest photo, and no photos were taken years ago.

Identity proof

So the financial institution can confirm you’re true identity, submitting valid identification cards or ID is a must. The institution may require IDs issued by the government; you may want to ask before submitting.

Residence proof

You are getting a loan, hence, it is only fair if the institution confirms your address so they know where to look for you in case you missed making your payments.

Bank account passbook/statement for the previous six months

To establish your ability to pay, the institution may require you to submit 6 months’ worth of your statement account. The institution needs to confirm your financial history and not just the money you own today. The bank needs to determine your capability of paying a certain amount of money before they make an approval.

Apart from the requirements mentioned above, some of the requirements you need to complete are:

  • Property documents
  • Salary certificate from your employer
  • Past two financial years of form 16 / IT returns
  • Copies for the last three years of IT returns / Assessment orders For business owners
  • Proof of advance Income Tax payment for self-employed professional
  • Proof of business address
  • IT returns / Assessment orders
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