A Comprehensive Guide to Home Loan Documentation: Simplifying Your Journey to Peace of Mind
Purchasing a home is an exciting milestone in anyone's life, but it often comes with the daunting task of obtaining a home loan. While the thought of dealing with paperwork and multiple visits to banks may seem overwhelming, having a clear understanding of the documents required for a home loan can alleviate much of the stress and bring you peace of mind. In this blog, we will take you through the essential documents you need to have in order before applying for a home loan. By having these documents readily available, you can streamline the process, avoid unnecessary back and forth, and focus on your dream of owning a home.
- Duly filled in and signed loan application form
- Self-Attested Personal documents of all applicant/s (to calculate loan eligibility)
- 2.1. KYC (Know Your Customer)
- Passport size colour photo
- ID proof (PAN card/ Passport / Aadhaar/ Driver License/Voter (Election) card)
- 1 Passport size colour photo
- Address proof of current residence (Passport/Aadhar/Driver License/Voter id/Last 3 months Bank statement /Latest Telephone/ Mobile Bill/ Electric Bill /Lease Agreement / Rental Agreement along with Electricity bill)
- Relationship proof (Marriage certificate/ Passport/ Driving License/ Voter id/ Aadhaar card/ Child birth certificate)
- 2.2. INCOME
- Latest 3 months pay slips
- Last 3-year work continuity Proof (Relieving Letter/Appointment Letter)
- Latest Salary CTC, hike letter, Promotion letter, Salary certificate, Offer letter – if required
- 6 months' salary credited bank statement.
- Latest Form 16 (Part-A, Part-B & Part-12BA) and IT returns (If Required)
- Last 12 months all EMI running bank statement (if any)
- Processing fee cheque from Salary account.
In case the co-Applicant's income is used to supplement the income of the borrower and increase home loan eligibility, then all the above self-Attested personal documents (both KYC and Income) of the co-Applicant are also required. Each Co-applicant has to provide their KYC documents irrespective of whether they have supplemented the income or not.
- 3. Property documents (to qualify the property for the loan)
- 3.1. Property documents for under construction property:
- 3.1.1 For property purchased from builder directly
- Allotment letter from builder to buyer, if any
- Sale Agreement between buyer and builder
- Construction Agreement between buyer and builder
- Cost Break up sheet from Builder.
- Payment schedule (Construction linked) from Builder
- Payment receipt from Builder (Money Margin Receipt: MMR)
- Builder NOC (No Objection Certificate)
- Demand Note from builder, if any
- NOC from Builder's Bank in case Builder has project funding
- Specific Power of Attorney, if any
- Mother deed/Title deed from builder (Needed if the project is not approved by banks).
- TDS Challan (Form 26QB or 281) & TDS paid bank statement
- Sanction Plan of the society.
- 3.1.2 For Property on Resale (i.e., Assignment agreement):
- Memorandum of Understanding (MOU) Signed by Seller & Buyer
- Assignment Agreement (signed by Seller, Builder & Buyer), if any
- Sale Agreement between buyer and builder
- Construction Agreement between buyer and builder
- Account Statement from Builder
- No Dues letter from Builder.
- NOC from Builder
- Seller's KYC (PAN, Aadhaar & Current Address Proof & Cancelled Cheque)
- Draft Sale Deed from Builder (If property is ready for Registration)
- Occupancy Certificate (OC) if property is ready to move in
- Sanction Plan of the Apartment
- Property Possession letter from Builder, if any
- Latest Property Tax paid receipt, if Required
- NOC from Apartment Owner's Association, if any
- TDS challan (Form 26QB/281) & TDS paid bank statement
- Seller's list of Home loan documents, Foreclosure letter & Statement of a/c reflecting property on seller, if there is a loan.
- 3.2 Property documents for registered property:
- Construction agreement between first buyer and builder
- Sale agreement between first buyer and builder
- Sale deed in Current Owner' name
- Franking of 0.1% on Sale agreement between Current Owner and you
- Previous Sale deed/s (needed in case the property is sold n number of times)
- Khata certificate and extract in current Owner name or Indemnity
- Property tax paid receipt till date
- Encumbrance Certificate (EC) from 01/04/2004 till date
- Specific Power of Attorney (If any)
- Settlement Deed/Release deed/Rectification deed, if any
- Tri-partite agreement/Assignment Agreement/Endorsement Certificate, if any
- No dues certificate from flat owner's association
- Mother deed/Title deed/ Occupancy Certificate /Building Sanction Plan, Floor Plan (Needed if the project is not approved by banks).
- Seller's KYC (PAN, current address proof & a cancelled cheque)
Note: For Ready-to-Move-in, but not yet registered property, Sale Deed in owner's name won't be available. For Assignment Agreement, there won't be any direct Sale Agreement or Sale Deed between current Buyer and Seller. Sale Deed will be between buyer and builder.
For Property Under construction, further set of documents are required for disbursement of loan.
- Allotment letter from builder to buyer, if any
- Sale Agreement between buyer and builder
- Construction Agreement between buyer and builder
- Cost Break up sheet from Builder.
- Payment schedule (Construction linked) from Builder
- Payment receipts from Builder, i.e. (Money Margin Receipt: MMR)
- Builder NOC (No Objection Certificate)
- Demand Note from builder, if any
- NOC from Builder's Bank in case Builder has project funding
- Mother deed/Title deed from builder (Needed if the project is not approved by banks)
- TDS Challan (Form 26QB) & TDS paid bank statement
- Latest Statement of Account of your property from Builder
- Tripartite Agreement (Between Bank, Builder and Buyer) to be signed, if applicable
- 6 Undated cheques from Salary A/C
- Bank statement reflecting all payments to Builder
- Specific Power of Attorney, if any
Please note that Loan will be disbursed once loan is sanctioned and Demand Note is raised by Builder.
Once the loan is approved, bank will also ask for below documents for loan disbursement for Registered Property. So please be prepared to provide last set of latest documents from seller as below.
- Copy of cancelled cheque or latest bank Statement (to verify account# and residential status for DD by lender bank)
- Self-attested Copy of PAN card, Aadhaar card and Current address proof.
- Seller Current address will be verified by buyer bank.
- Original document verification at bank's Lawyer Office.
- Property inspection (multiple times) to assess market value of property from buyer bank valuers.
- Loan closure NOC/ letter, if any
Besides, you will also have to provide:
- Draft Sale Deed (One week before the registration)
- Encumbrance Certificate (EC) from 01/04/2004 till date
- ACH/ECS (Electronic Clearing Service) Online/Auto Debit of EMI from your Bank account
- TDS Challan as per IT and proof of payment (Bank Statement)
- Disbursement Request form & Loan Agreement signature by all the buyers.
- Life/Property Insurance, if any
- 6 Undated dated cheque form Salary A/C if applicable.
- Estamp & Notary as per the bank format
- Bank Statement reflecting all payment made to the sellers.
Note: EC has validity of one week only.
Loan will be disbursed once loan is sanctioned, and property is ready for registration.
Gathering the necessary documents for a home loan may seem like a tedious task, but by having these documents ready in advance, you can make the process of obtaining a home loan a smooth and stress-free experience.
