Documents for Home Loan Application

The path to homeownership is often paved with meticulous documentation that can either accelerate or impede the approval process. This article will walk you through the essential documents required for a home loan application, helping you to navigate your home loan journey with confidence and clarity.

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General Home Loan Documents

Category	Documents Required
Application Form	Duly filled and signed along with three photographs
Proof of Identity	PAN CardDriver’s License / Voter ID / Passport / Aadhar Card
Proof of Residence	Driver’s License / Ration Card / Voter ID / Passport / Aadhar Card / Registered Rent Agreement
Proof of assets held	LIC, NSC, KVP, Mutual Funds, Property

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Income Proof

Salaried	Self Employed	Farmers / Agriculturists
Latest 3 months salary slips (latest 1 month for guarantors).	Balance Sheet, Profit & Loss A/C, and Income Computation for the last 2 years.	Revenue officer certificate for the past 2 years’ income.
Form 16 and ITR of the last year.	ITR for the last 2 years (with Form 26 AS and Traces).	Land revenue records (Form 6, 7/12, 8A).
Copy of employee identity card provided by the employer.	Business proof (Gumasta License, Registration Certificate, Service Tax Registration, etc.).	Bank account statement for the last 12 months.
Employment-related documents (Appointment / Confirmation / Promotion / Increment letter).	IT assessment and clearance certificate, IT challans, TDS certificate (Form 16A).
6 months bank account statement (salary account or individual account).	Bank account statement for the last 12 months (for individual or business).

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Home Loan Documents for NRI/PIO/OCI

Category	Documents Required
Identification and KYC Documents	Document Establishing KYC: Basic KYC requirements. Copy of Passport: Showing the page of residence visa.
Employment and Income Verification	Salary Certificate: Issued by employer, stating details like name (as per passport), designation, passport number, date of joining, and latest salary, all mentioned in English. Salary Slips: Last 3 to 6 months’ slips reflecting variable components like incentives, overtime, etc. Proof of Employment: Documents like work permit, labour contract, etc., provided by the Government of the residing country. Income Documents Attested by Embassy: Required if there’s no documented evidence for salary credit or fund remittance to India. Email ID of HR (Employer): To verify employment details. Employment Profile: Documenting the last 5 years of employment history.
Business Documents for Self-Employed NRIs	Business Related Documents: Includes Trade Licences, Sponsor Agreements, Power of Attorney, etc. Credit Report: From Overseas credit agencies (except for Merchant Navy). CDC: Required in case of Merchant Navy.
Financial Statements	Overseas Bank Statement: Copies from overseas banks for the past 6 months. NRO/NRE Bank Statement: Last 6 months to trace the financial transactions in India.
Property Related Documents	Property Documents: Including cost estimates from an Indian Architect or Engineer.
Legal and Power of Attorney	Power of Attorney: If the applicant is unavailable in the country at the time of signing documents, a Power of Attorney needs to be produced by the person acting on their behalf.

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Property Documents

Documents Required	Description
Deed of Sale/Sale Agreement	Legal contract outlining the terms of the property sale.
Share Certificate	Required for cooperative society properties (original document).
Allotment Letter	Issued by Society, Housing Board, or Private Builder confirming property allocation.
Tax Receipts	Proof of taxes paid for building and land.
Certificate of Possession	Issued by revenue authorities confirming ownership.
Certified Property Sketch	Detailed location map from revenue authorities.
Certificate of Non-encumbrance	Ensures the property is free from legal liabilities for the past 12-30 years.
Permission Letter	From appropriate authorities for property transactions.
No Objection Certificates (NOC)	1. From Builder/Housing Society. 2. Under the ULC Act, 1976 (original). 3. If converting agricultural land, a relative order copy.
Receipts of Advance Payments	Proof of payments made for flat purchases.
Detailed Construction Cost Estimate	Breakdown of expected construction expenses.
Declaration for Land Plot Purchase	Statement specifying the construction completion date by the borrower.
NOC from Builder/Housing Society	Confirming no objections.
Remittance Details	Letter from Society/Builder with bank and account details for installment
Borrower’s Declaration	Stipulating the date to construct a house
Professional Reports	1. Lawyer’s Report: As per the standard format. 2. Property Valuation Report: By an empanelled valuer.
In Case of Borrower’s Demise	1. Request Letter from Legal Heir/Nominee: For document handover. 2. Relinquishment Letter: From other Legal Heirs/Nominees for property document handover.

Post Loan Closure – Documents for Handover

1. Power Of Attorney: For collecting original documents of Property.
2. Letter requesting handing over of Property documents: From Legal Heir/Nominee(s).
3. Letter relinquishing the right to Legal Heirs/Nominees: For Property documents handover

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Home Loan Balance Transfer Documents

1. Existing loan account statement for the last 12 months.
2. List of property documents submitted to the previous bank.
3. Sanction letter.
4. Foreclosure letter (if available).

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Steps to Get Your Dream Home with a Home Loan

1. Financial Fitness Check

• Evaluate Your Finances: Assess your savings, income, and expenses to determine how much you can afford.
• Check Your Credit Score: Obtain your credit report and address any discrepancies or debts to boost your score.
• Set a Budget: Define a realistic budget that includes the home price, down payment, and additional costs like taxes and insurance.

2. Get Pre-Approved

• Choose the Right Lender: Research and compare mortgage lenders to find the best rates and terms.
• Gather Documentation: Prepare essential documents such as ID, income proof, bank statements, and credit history.
• Submit Application: Apply for pre-approval to understand your borrowing capacity and strengthen your position when making an offer.

3. Find Your Perfect Home

• Work with a Realtor: Partner with a trusted real estate agent to navigate the market and find properties that meet your criteria.
• Attend Viewings: Visit multiple homes to compare features, locations, and prices.
• Make an Offer: Once you find your dream home, submit a competitive offer based on market analysis and your budget.

4. Finalize Your Loan

• Complete the Application: Provide any additional information or documents required by your lender.
• Underwriting Process: The lender will review your application, verify your information, and assess the property’s value through an appraisal.
• Approval and Terms: Receive your loan approval along with the final terms and conditions. Review and negotiate if necessary.

5. Close the Deal & Move In

• Review Closing Documents: Carefully read through all closing documents, ensuring you understand the loan terms and fees.
• Sign the Papers: Finalize the home loan agreement and complete the legal transfer of property ownership.
• Receive Keys: Celebrate your new home by moving in and making it your own!

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Conclusion

Having the right documents is crucial to making this journey smooth and successful. By understanding and organizing the essential paperwork—from personal identification and income verification to property-related certificates—you position yourself for a hassle-free application process and increase your chances of approval.

Are you ready to take the next step toward owning your dream home?
Book a FREE Consultation Call with Credit Dharma and leverage our expertise to simplify the home loan process.

Let us help you transform your aspirations into reality with confidence and ease. Your dream home is within reach, and with Credit Dharma by your side, the path to homeownership has never been clearer.

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Frequently Asked Questions