The most common way homebuyers approach to buy a property is through applying for home loans. Home loans have become a major part of the process of home buying today. Usually, people approach different banks while the process & documents required would vary from banks to banks and lenders to lenders. Though it differs in every means, there are certain types of documents an applicant should produce, which are common for all the banks. It is extremely imperative to be aware of these required documents by all the applicants while applying for a home loan. Here is a few basic paperwork you should be prepared for a home loan application. Let us guide you through the preparation of these documents to buy your dream flat or villa.
1. Home loan application form
The most basic document for any home loan and the applicant need to fill all the details carefully. It is necessary to furnish the details of the co-applicant if you have any. Also, a photograph of yours is to be attached or pasted along with your joint applicants as well. Processing fee should be paid along with the home loan application. Remember, the fee you pay is non-refundable and you ought to avoid making applications to multiple banks.
2. Proofs of the applicant
Whether you buy a small flat or villas for sale in OMR, you need to be prepared with some basic proofs that are mandatory to whichever bank you apply. The identity proofs which you should compulsorily submit along with the home loan form are listed below.
1. PAN card
3. Aadhaar card
4. Driving license
5. The identity of the employer
6. Voter identity card
In case of address proofs, the banks generally accept Aadhaar card, voter Identity card, passport, driving license, utility bills, and bank statements with your (applicant’s) address should be printed on it.
Example: To illustrate how important these documents are.
Mr. Sunil was preparing to buy a luxury villa in OMR and he was about to apply a home loan for an amount of Rs.70 Lakhs. His home loan approval was delayed because he was unable to submit two of his proofs within the time. Unfortunately, it took him a few more months to get approved and buy the villa he wanted. So it is always important to have all your valid documents prepared in prior to applying for a home loan.
3. For Applicants who are self-employed
Usually, applicants who work in an organization should submit the identity of the employer. But, for those who are self-employed, you should produce the last three years income tax returns with all computations of the total income as well. They also demand the audited profit copies along with statements and balance sheets of the past three years. If you don’t have all these sheets audited, then you will have to get these documents prepared and certified by a charted accountant. The banks also insist on submitting educational qualification proofs for both applicants who are salaried and self-employed. For further verification, banks also demand copies of bank statements in which your salary is credited. This is to check your transactions and authenticity of your income.
4. Documents related to the property
After you have decided on the property you like to own, then you will be submitting the documents related to the property you’ve found. In case of resale property, you’ll likely have to submit the copies and originals of the documents representing the first buyer to the present seller. It is to certify the property is not under any mortgage. If the property is a part of any cooperative society, then you will be producing a no-objection certificate from the society. Also, if you are purchasing a flat/villa from real estate developers, then you have to furnish the clearance documents from the local authority and then plan of the building which is approved, documents related to land ownership, legal opinion, title and so on.
With a proper awareness of these things while applying a home loan can get you through the process on a smooth road.