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Getting house loan is quick and easy. While applying for house loan, a borrower has to go through the number of formalities before he is eligible for the loan. Generally, the criteria and documentation requirements are uniform among all the banks only the specific requirements may vary from bank to bank depending on the purpose of the loan, tenure, amount, etc.
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Most of the people, do not appreciate the purpose as to why these document are required and hence they do not submit it at a time. In the process, when asked subsequently by the bank, during the process they keep on blaming the bank, who is not actually at all at fault. Who will lend you money when they don’t know you, and when they give you money only on the strength of your papers.
Documents related to land if you are constructing an independent house:
- Documents showing ownership i.e. Sale deed/conveyance deed in borrower’s name.
- Copy of Property card from City Survey
- Copy of 7 x 12, 6-A, 8-A from Village Talati/Revenue officer
- Title clear certificate of the land from advocate probably from the approved advocate of the bank.
- Copy of Non Agriculture permission order
- Share certificate of co-operative society if the house is in a society.
Documents related to Construction:
- Drawings i.e. plan and elevation of the house to be constructed signed by licensed Architect/Engineer.
- Copy of building permission from the competent authority including copy of the approved plans.
- Estimate of cost of construction from the Architect / Engineer from banks approved panel.
- Copy of agreement with the contractor for construction of the house
- Copy of bills of materials, if you are buying the materials yourself.
- Copy of contracts with labour contractors
- Valuation report from the Government approved valuer/Bank’s approved valuer on completion of the project or at intermediate stage depending upon your loan amount.
Documents related to income:
If you are a salaried person:
- Personal Balance sheet
- Salary certificate
- Last salary slip
- Income tax returns of last 3 years
- Copy of your bank passbook
- Details of FDs, Mutual funds, Shares, PF, PPF etc.
- Details of LIC policies
If you are businessman:
- Income tax returns of last 3 years of your firm/company. Where you are partner/director/proprietor.
- Copy of balance sheet and Profit & loss account of last 3 years
- Brief write up on your business
- Identification Proofs:
- Your Aadhar card
- Permanent Account Number (PAN) card for income tax
- Social Security No.
- Driving license/light bill/house tax bill etc.
Detail of Guarantors:
- If the loan is guaranteed by guarantor many financial institution don’t insist for guarantors for a loan upto certain limit. (for which one has to directly talk with them)
- Detail of income and property ownership of 2 guarantors who are going to guarantees your loan (as per above)
Without anyone of this document the bank/finance company can’t evaluate your proposal. It is therefore in your interest to submit all documents at a time for fast processing and disbursement.
After the loan is sanctioned, you will have be issued a sanctioned latter. On acceptance of sanctioned letter and it terms & condition as well as “mortgage agreement” the actual disbursement would start after that.