Need Quick Home Loan? Be Ready With Adequate Documents

Documents are the first and foremost important thing you require while applying for the home loan. More often than not, it has been noted that documents that you consider a day to day routine and don’t give that much importance to, all of a sudden become absolute necessity when you apply for a home loan. The crunch for adequate funds has ensured that the need for home loans remain gyrating. The gap between the property amount and actual cash in hand is filled with the help of housing loans.

If the home loan is of such a critical importance, the focus of home loan seeker should be that the loan is passed  without much delays or hiccups. It has been noted that most of the loans are disapproved these days if the documents provided have any flaws or are incomplete. The Know Your Customer (KYC) norms these days are too strict by RBI and loan financing institutions don’t provide loans unless they are 100% sure of the prospective client and his ability to repay. Therefore, below mentioned documents must be kept ready if the loan seekers want to save themselves from a dicey situation:

1.    Salary Slip: The slip is necessary as this is the document through which your exact limit of loan is set. Generally, home loan is given up to 75-80 percent of the property value but the salary is also taken into account. The salary slip should contain official stamp of the company of the employee in search of a home loan. It should contain the name of the employee and Employee Provident Fund account number as well.

2.     Address Proof: The address proof of the residence where the customer is living should be given. It has been noted that in some cases the customer doesn’t have proof like electricity bill or water bill in their name of the rented premises. In such cases, even an authentic agreement on a stamp paper between the landlord and tenant is enough.

3.     Educational Qualifications: This is required to be submitted by the customer. Proofs like educational qualifications make your case strong for attaining a loan.

4.     Identification: A PAN card, Voter ID and passport are treated as a identification proofs. Now even the AADHAR card is also taken as an identification proof.

5.     FORM 16 or ITR: Apart from the above mentioned documents, FORM 16 and Income tax Return are required by the housing finance company.

6.     Bank Statement: A bank statement of up to six months is asked for as a part of documents.

7.     Property Documents: Valid property documents are required by the financier.

After the loan is through the first stage of documentation some other credentials are required to be submitted with the home financier.

1.     Address Proof of Seller: The loan procedure is not complete till the time address proof of seller is given by the customer. This should be put forward along with the ID proof of the seller.

2.     Possession letter of Seller: The seller possession letter is also submitted that authenticates that the seller of property is the genuine owner of the property.

Important Note:

The documents mentioned above often result in tricky situation for the customer. The property agents of loan financing companies are mostly not professionals. A checklist even if it is provided does not contain all the documents required to be submitted. Customer in such cases is troubled when he is asked for any particular documents at random by the agents. Ethics don’t work in property markets and even in property financing. Even the promise to pass a home loan in one week to ten days doesn’t come good in most cases. Passing of loan varies highly from property to property. Almost 90 percent of the home loans in India are passed after more than ten days sometimes due to the fault of customers and sometimes due to the fault of home loan financing companies.  It is recommended that buyer should make at least one month deal for the purchase of loan. The agreement should mention the advance given to the seller at the time of the deal and should contain a point of refund in case the deal is not through due to any delay.