Before taking a home loan, you need to keep in mind what is your budget. This aspect has to be seen that how much margin money you have with you and the maximum loan you can get. Along with this, how much money do you have for registry and possession? This will make it easier for you to get an idea of your budget. On this basis, start looking for a home for yourself.
Along with finalizing the house, collect these documents also
Lenders want to be completely satisfied before giving a housing loan. Hence, a lot of documents are required for a home loan. We can mainly divide documents into three categories. Documents related to KYC, proof of income, and documents related to the house.
Let us see the complete list of documents required for a home loan:
Documents related to KYC: For identity proof, you can use any one document from PAN Card, Driving License, Passport, Aadhar Card, Voter ID Card. At the same time, for proof of age, you can bring any one of the documents like Aadhar Card, 10th Mark sheet, PAN Card, Passport, Birth Certificate, in use. On the other hand, for a residential certificate, you can use any one of the documents like Bank Passbook, Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill), Voter ID, Ration Card, Passport and LIC Policy Receipt.
Income-related documents: If you come from a salaried class, then you can submit Form-16 for the last two-three years, salary slips for two-six months, income tax return for the last three years, proof of investment (e.g. fixed deposit, Documents like share, etc.), increment or promotion letter and passport size photograph can be given as proof of income. Whereas, if you have your own business then three years income tax return, business license statement, balance sheet, and profit and loss account statement of the company (certified by CA), license of professional practice if you are a doctor or consultant, Registration certificate of establishments (shops, factories, and other establishments), certificate of business address can be given in the form of a document.
Documents related to the property: For a home improvement loan, you need documents like allotment number, NOC from the builder\'s lender.