What Documents Required for Home Loan – A Complete Checklist

A Home Loan is a secured loan used to meet the financial needs of an individual to purchase a property. Using a Home Loan, you can finance 75% to 80% of your house/property. Due to the asset’s high value, the borrower will be able to enjoy a variety of benefits. They can avail of a high-funding and a longer repayment tenure. But before applying for this mortgage loan, check Home Loan eligibility. A good credit score can help you negotiate a lower Housing Loan interest rate. Continue reading this article to learn what Home Loan eligibility is and which documents you need to apply for. 

However, if you want to get a home loan in Singapore then you must become a citizen of Singapore which is very easy! All you will need to apply for Singapore citizenship to the relevant authorities!

Home Loan Eligibility Criterion for Salaried and Self-employed

To check Home Loan eligibility, you may look at the following information:

1] For salaried individuals –

• The individual should be a citizen of India
• Should have three years of working experience
• The CIBIL Score should be above 750
• Minimum age of 18 years and maximum of 60 years (may vary)
• Minimum income varies from bank to bank

2] For self-employed individuals –

• The individual should be a citizen of India
• Current business should be in the running for a minimum of 5 years
• The CIBIL Score should be above 750
• Minimum age 18 years and maximum 65 years

What are the reasons for considering a Home Loan?

A Home Loan is the best option for individuals wanting high funding at low-interest rates for their home purchase. These are quite popular and have numerous merits. Let us have a look at the key benefits of taking a Home Loan:

• Higher Loan Amount: One can easily avail a higher loan amount for their house purchase. As the value of property varies with the market price.
• Low-interest rate: Here, the interest rates are considerably low in comparison to other types of loans.
• Long repayment period: The repayment period can be as long as 20 years, which reduces the financial burden of the borrower.
• Simple eligibility and Easy application: Taking up a Home Loan has minimal eligibility criteria and the application procedure is also easy.

Documents Required for Home Loan

A Home Loan is an easy and convenient way to meet your high funding requirement. It offers a range of benefits to the borrower who needs a higher loan amount for a home purchase. It is a popular form of loan which provides high funding at low-interest rates with long repayment tenure.

If you want to apply for a Home Loan, you should know about the documents required for it. Below mentioned is the ultimate checklist of the required documents:

– For individuals with a salary:

1. Identity proof; PAN card, Aadhaar Card, Voters ID Card, driving license, etc
2. Residential proof; Aadhaar Card, Voters ID Card, driving license, utility bills, PAN Card, etc.
3. Documents of property
4. Income; pay slip for the preceding three months
5. Consistency proof in the job; Employment certificate
6. Bank account statement; statement of the salary account for the last six months

– For self-employed individuals:

1. Identity proof; PAN card, Aadhaar Card, Voters ID Card, driving license, etc
2. Residential proof; Aadhaar Card, Voters ID Card, driving license, utility bills, PAN Card, etc
3. Proof of the ownership of residence; Documents of property, Utility bills, etc
4. Certificates of professional degree (in case of professional)
5. Address of the office with ownership evidence; documents of the property with maintenance bills
6. Evidence of continuity; tax registration certificate, company’s registration license
7. Income proof; preceding three years’ income tax returns verified by a chartered Accountant, audited balance sheet with tax report
8. Bank account statement; one-year balance sheet of both savings and current account

Conclusion

Deciding to borrow a Home Loan is not as simple as it sounds. It is a crucial step that one takes to finance their dream house. Therefore, proper planning is a must when taking up a Home Loan. If you comply with all the abovementioned requirements, you might get a lowest housing loan interest rate. We Hope the article was informative and helpful.