Proper documentation is an essential part of the Home Loan application process, and interestingly, most people do not give it much importance. By the time they realize their mistake, it’s usually too late and the Home Loan gets rejected by the bank due incorrect or incomplete documentation.
Checklist for Home Loan Applications –
1: Identity proof: Irrespective of whether you are a salaried or self-employed person, you will need to furnish your identity proof with the bank. You can submit any of the following documents with a photograph issued by central or state government agencies like:
- Passport
- Aadhar Card
- PAN card
- Driving license
- Bank passbook with Photo Bank Seal
2: Address proof: You will have to submit address proof confirming your present residential address when you apply for a Home Loan. You can also submit any of the documents accepted under KYC norms or any utility bills like telephone, water or electricity also Aadhar Card is essential document for Identity as well as Address proof. A letter from a recognized public authority like the Municipal Corporation or a address proof letter issued by a Ltd company on their letter head, verifying your current residential address would also do.
3: Age proof: Although ‘age is just a number’ as the popular adage goes, you will have to submit your age proof document at the bank since Home Loans are offered to individuals only within a certain age bracket. Any KYC acceptable document, which has your date of birth listed, can be submitted as your proof-of-age document. Even your matriculation certificate, which has your date of birth mentioned, would do the trick.
4: Income Proof: While age, address and identity proof may be considered more of a formality, it is the
income proof document which would make or break your Home Loan application.
Depending on whether you are a salaried or self-employed individual, you will have to submit the following proof of income documents:
If you are salaried:
- As a salaried individual, you will need to furnish a copy of your latest salary slips 6 months or salary certificate for 6 months
- Form 16 and copy of ITR as applicable is required.
- A copy of the appointment letter would be required.
- If you have got a recent hike in salary, increment or promotion letter, those also need to be submitted as and when applicable.
- Additionally, 6 months bank statement.
- If you have any existing or a recently closed loan, you need to submit the documents.
If you are self-employed:
As a self-employed individual, you will need to submit the following documents:
- Introduction of your business or profession
- Last 3 years ITR, with balance sheet all certified by a chartered accountant
- Profit and loss account statement of your business
- Copy of the registration certificate under the Shops and Establishments Act or Factories Act; whichever is applicable.
- Partnership deed etc. as applicable
- Additionally, you will also have to submit your bank statements for the last 1 year.
- If you have any existing or a recently closed loan, you need to submit the documents.
Irrespective of whether you are salaried or self-employed you must require Income Tax Return for last 3 years. All documents want to be duly acknowledged by the Income Tax Department.
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