Home Loan Documents Required- Personal Home Loan against Property and Personal Loan Complete Checklist…
It’s undeniably true that loans will come in handy whenever you want to fulfil housing finance-related needs. What’s even better, you don’t have to go through a lot simply because you want to apply for a home loan, Loan against Property or Personal loan.
But before you take this route, it’s in your best interest that you understand what’s expected of you. Considering it happens to be a secured loan, you need to have the necessary documents in place before completing the application form. In this article, we will take you through some of the things you need to know before applying for a home loan.
List of Documents Needed for Home Loan
It is in your best interest that you know about every document needed before you can finally apply for a home loan. After all, this is the only way you stand a better chance of landing a home loan in the first place. To cut the long story short, below is a list of documents required to apply for a housing loan hassle-free.
Proof of Address Documents:
Some of the most notable documents that make it to this list include bank passbook, voter’s ID, Ration Card, LIC Policy Receipt, passport, Driving license and any utility bill you may have. Keep in mind the utility bills should be up to 3 months old.
Identify Proof Documents:
When it comes to identity proof, you need to have with you any PAN card, Passport, Aadhaar Card, voter’s ID card, or driving license.
Income documents are also a must-have when looking forward to applying for a home loan. You should however keep in mind the documents you need to submit depend on whether you are a salaried individual or self-employed. For salaried individuals, you need to have From 16, a certified letter from the employer, an increment or promotion letter, IT returns for the past 3 years, not forgetting any of your payslips for the last 2 months.
Things tend to be different with self-employed individuals since they should submit important documents including:
- Income Tax Returns (ITR) of the last three years
- The license of Professional Practice
- Proof of business address
- Registration certificate of establishment
- Balance sheet and profit & loss account statement of the firm or company
Property documents are also a must-have when looking to take advantage of a home loan. They include;
- Occupancy certificate
- NOC from Society or Builder
- A detailed estimate of the cost of constructing the house
- Improved copy of the building plan
These are just but some of the documents you need to have with you before applying for a home loan. Other notable documents you should not forget include:
- Home loan application form
- 3 passport-sized photos
- Advanced processing cheque
With these documents in place, it will only be a matter of time before you complete the application form. Ensure you have everything in place before you get to do anything.
LAP, Loan against Property or Mortgage Loan Documents Required
Eligibility, List of Documents Needed for Loan against Property: Are you looking forward to applying for a mortgage loan? If so, this is a step in the right direction when planning to own your dream home without going through a lot. After all, you will get the financial assistance you need to buy a house and safeguard your future and that of your family members.
But just as is the case with any other type of loan, there are a few documents you need to have with you before filling out and submitting the application form. Here is the list of documents every mortgage applicant must supply before they can finally get a loan approved.
- Income Tax Returns
Mortgage lenders always examine your full financial information to determine whether there is stability and consistency. Actually, this is the only way to tell if you can afford the mortgage payment. In this case, you have to submit your income tax returns for the past 1-2 years. This will mean providing Form 4506-T as it gives them permission to get your tax transcript directly from the IRS.
- Proof of Income
Proof of income is also a must-have if the lender is to have an idea of your financial situation. Therefore, you can include pay stubs from the last 30 days with the employer’s signature depending on the mortgage lender you rely on. Self-employed individuals will have to produce other proof of income documents including child support, direct deposits or 1099 forms.
- Bank Statement
Mortgage lenders will ask for two to three months’ worth of bank statements to find out more about your savings balances, income, and source of your down payment. Aside from the bank statement, they may also request other investment assets such as life insurance.
- Gift Letters
Depending on the mortgage lender you rely on, you may be free to use gift funds to cover the down payment. If a friend or family member chips in to give you down payment money, they must sign a gift confirming you’ll not pay it back. Ensure the documents indicates the relationship together with the amount of money they offered.
- W-2s Forms
With mortgage loans, you need to submit W-2 forms from current and past employers for the last two years. If for any reason you do not have them, you can simply check with your employer. Alternatively, you can contact the IRS requesting a copy of the documents you submitted while filing your tax returns.
- Credit History
Your credit history plays an important role when applying for a mortgage loan. But that’s not to say you should submit a copy of your credit reports. Instead, the mortgage lenders will request permission to check your credit history. However, you must be ready to provide a written statement in case you have negative items on your credit report.
Other notable documents you need to submit before completing the application include your photo ID to prevent mortgage fraud together with proof of homeowners insurance. It is then that you can start filling out the application form.
Documents Required for Personal Loan
Better, it won’t take long before the personal loan applied for is approved. But just as is the case with any other type of loan, there are a couple of documents you need to have with you before filling out the application form.
Checklist of Documents Required for Personal Loan
For you to increase your chances of getting a personal loan, there are documents you must present either in print or digital format. Below is the list of documents to have ready with you before contacting a lender.
- Residence Proof Documents: When it comes to the documents that serve as proof of where you reside, you can make use of a Ration Card, Passport, or Utility bill. Ensure the utility bill is dated for the last three months
- Identify Proof: Personal loan lenders also have to confirm your identity before approving the loan. The documents to submit in this regard include voter ID card, Passport, PAN Card, Aadhaar Card or driving license
- Income Proof: Not many personal loan lenders can approve one without making sure you have proof of income. For this reason, you must be more than ready to submit your payslip and bank statement for the last three months
- Job Continuity Proof: With this document, you’re free to use your job offer letter or letter from the Human Resource Department. That’s mostly the case if you’ve been at the current employment for less than 2 years
- Financial Documents: The financial documents required depend on whether you happen to be a salaried or self-employed individual. For salaried individuals, you need to have with you a Form 16, salary slip (the last three months) and bank statement (the last six months).
Things are somehow different for self-employed individuals since you have to submit the latest one-year bank statement for both current and savings accounts. Furthermore, you must also provide proof of office address, business existence and office ownership
- 1 Passport size colour photo
- Duly filled personal loan application form
The Bottom Line
Applying for a personal loan does not have to be the underlying reason why you are going through a hard time. All it takes is for you to figure out the documents you need to have with you before you can start filling out the application form. Remember, these documents make it easy for the financial lending institution of choice to know and understand the financial stability of the borrower way better.
If this is not enough, they make it easy for the lending institution to analyze the credit risk of a borrower. Hopefully, this post can serve as a good starting point the next time you decide to apply for a personal loan or Loan against a Property LAP loan.