A home loan can be a quick fix for all your home-related financial problems, but like any other loan, your lender will require you to prove your worth before they will grant you the funds.
So how are you going about this?
It’s pretty simple. All you have to do is submit all personal/professional details to your lender. Here is a list of the eligibility criteria you must meet to successfully avail a loan.
1. Checking Your Eligibility
You’ll need to meet certain criteria to convince your lender(s) that you’re cut out for the loan. Here is the checklist of your mortgage loan eligibility criteria that may vary slightly depending on your lender, keeping the same essence:
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Proof of valid ID (passport/voter ID/driver’s license) to prove you are an Indian resident
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You must be within the age group of 25 to 70 years.
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If you are self-employed, you will need to provide proof that your business is at least 5 years old.
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Your loan amount must be between the minimum and maximum amount offered by your lender
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Your latest credit report with a score of 750 or higher and a brief history of on-time payments and credit utilization
2. Required Documents for Home Loan Sanction
Once you are eligible, the financial institution lending you the funds will require documented proof of your existence and financial stability. These are the papers you will need to submit:
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Complete the mortgage loan application with all your credentials
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Last passport size photographs
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Proof of ID (voter ID/passport/driver’s license)
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Proof of address (voter ID/water or electricity bill)
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Proof of business address (in case of self-employed candidates)
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Bank statement for the last six months
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signature identification
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Statements of personal assets and liabilities in a proper format as stipulated by your lender
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Detailed information about loans you are already paying off, including lender details and mortgaged values
If you are a salaried person, you will need to provide the lender with additional documents. Here is a list to help you organize your papers:
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Original salary certificate from the previous month
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Certificate of taxes deducted at the source: form 16 or a copy of the IT declarations that you have made in the last two years recognized by the Income Tax Department
For a self-employed person running a business, the additional documents that must be submitted are as follows:
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Income tax returns made in the last three years recognized by the Income Tax Department
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Copies of income tax advance receipts
3. Property Documents Required for a Mortgage Loan Sanction
When you offer your property for a mortgage loan, financial institutions will require legitimate documentation to remove any illegalities before the loan amount is sanctioned. Here is a list of documents you may need to submit if your lender asks you to:
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sale agreement
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Paid building and land tax receipts
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possession certificate
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Map of the location of the property certified by the tax authorities
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Award letter issued by housing board or private builder
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Receipts of advance payments made for the purchase of the apartment
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Certificate of no lien
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Original NOC under the Urban Land Roof Act, 1976
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Copy of relative order if the land has been used for agricultural purposes
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Original NOC from Housing Society or private builder
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Detailed Construction Cost Estimate
A star paper trail is by far the best method of getting your loan application approved because those papers justify your ability to repay a loan. You’ll have to think of it like a job interview. Every detail mentioned in your documents has to be legitimate in order to get the final sanction go-ahead from your lender.