Over the last few years, the demand for home loans has increased significantly. This is primarily because home loans allow borrowers to buy a home and pay for it slowly and conveniently over a loan tenor that works best for them. Home loans also offer home loan tax benefits and borrowers can avail of these benefits to save money each financial year. Further, home loans are low-interest and long-tenor loans, two factors that further add to their popularity. However, borrowers must keep in mind that not everyone who applies for a home loan gets one. Lenders sanction home loans only to those borrowers who they know are capable of repaying them. All lenders have home loan eligibility requirements and only those borrowers who meet these eligibility requirements get approved for a loan. Further, all lenders also ask for certain documents that help lenders verify a borrower’s creditworthiness and repayment capacity. Individuals who do not have the required documents also find their loan applications getting rejected. Here, we discuss the documents required for a home loan. 

Documents Required for a Home Loan 

Here are the documents you will need for the successful processing of a home loan application: 

Identity Proof Documents 

Under this category, you can submit any one of the following:

1. Aadhar 

2. PAN Card

3. Voter ID

4. Passport 

5. Driving Licence

Address Proof Documents 

Under this category, you can submit any one of the following: 

1. Any of the documents mentioned under the identity proof documents category 

2. Electricity bill

3. Phone bill

4. Water tax

5. Property tax receipt 

Property Documents

Under this category, one must submit: 

1. Sale Deed 

2. Allotment Letter 

3. Possession Certificate 

4. Land tax receipts 

5. Occupancy Certificate 

6. A bank account statement that can serve as proof that you have made the payment to the seller for the property 

7. A paper that details the estimated construction cost 

– Passport-size photographs 

– A duly filled home loan application form

Two things must be highlighted here. All lenders have different document requirements for home loans. Home loan applicants must talk to their lender’s representative and enquire if they have any specific document requirements. This will help them navigate the home loan application process smoothly. The second thing that borrowers must know is that document requirements vary based on whether the individual is salaried or self-employed. For instance, in the case of salaried individuals, borrowers ask for salary slips and employment ID cards. However, in the case of self-employed individuals, borrowers ask for profit and loss statements and balance sheets. So, depending on your profession, the document requirements will change. So, before you start your home loan application process, talk to your lender and get clarity on the document requirements for the loan. keep original and soft copies of all the documents ready with you for a smooth and hassle-free loan processing. 

Also Read my other article:- Complete Guide To The Home Loan Process