Home loan is an essential element in case of purchasing a home. But they necessitate the submission of few documents. In case of a ready-to-move-in flat or an apartment, the documents needed are different than the ones needed for the under construction properties. The banks are more easy-going with the loans for a ready-to-move-in apartment than the ones that are under construction. The simple reason is that the banks are more secured in procuring loans for a built-up property. The reason is they are a performing asset. The banks in case of a built-up property just ensure that the flat, house or property being built up is constructed according to the mandatory approvals and sanctioned plans and is free from any lien or prior mortgage.
Notwithstanding the procedure for the banks and the financial institutions, it is good if the sellers and the buyers know the procedure for procuring the loans as well as the documentation needed. This will make the process of loan disbursement easier. If the documents are proper and in place, the disbursement of the loan does not take much of time either. The expert lists the documents needed to get a home loan.
Proof of Identity is the Important Factor for Home Loan
Identity is an important factor and a proof for it is needed for applying for any loan. Some of the common documents that the banks ask for to sanction any application of loans are Passport, Voter’s ID, Driving License, ID card issued by a government agency, Adhaar Card, Permanent Account Number or Defense ID card.
Apart from the proof of identity one also needs to produce the proof of residence as well. The documents normally asked for are your Passport, Voter’s ID, Permanent Driving License, registered society’s bill, electricity, telephone, pipeline gas or water bill, domicile certificate with address issued by any municipal corporation, salary slips for the last three months, last Form 16, bank statements or passbook for last six months, appointment letter, Income Tax returns for the last three years and certificates for educational qualifications. These are the certificates that need to be furnished by a salaried employee. The list for the self-employed person is different.
The self-employed person needs to furnish few other documents which are the last three years’ balance sheet and profit and loss statement, letterhead of the firm, bank statement of his current and savings account of the last year, shop establishment license, Partnership deed or Professional practice certificate, VAT license or any other mandatory license or registration, Form 16A or Tax Deduction certificate, Memorandum or Articles of Association in case of a company with the list of directors and shareholders, self-assessment tax receipt or advance tax receipt, tax audit report if applicable, and sales or service tax returns with proof of turnover.
Additional Property Related Documents that the Bank Needs! for Home Loan
Apart from these the bank also needs few property specific documents too for which the loan is taken. These documents include Conveyance Deed or sale deed, MOU with the builder, possession certificate, search report and the title certificate. In case, agricultural land is bought for constructing residential units, the permission for construction that is the certificate of conversion is also needed. Permission for the transfer from the society or a No Objection Certificate (NOC) may also be required to be submitted. In case the property is under construction, the bank or the financial institution may require to inspect the constructions at various stages of it.
Guides to Buy a ready-to-move-in Apartment on Home Loan: Key Takeaways
- The banks are more easy-going with the loans for a ready-to-move-in apartment than the ones that are under construction as they are considered as a performing asset.
- The banks in case of a built-up property just ensure that the flat, house or property being built up is constructed according to the mandatory approvals and sanctioned plans and is free from any lien or prior mortgage.
- Identity is an important factor and a proof for it is needed for applying for any loan.
- Notwithstanding the procedure for the banks and the financial institutions, it is good if the sellers and the buyers know the procedure for procuring the loans as well as the documentation needed as it makes the process of loan disbursement easier.