Home Loan Application – What Documents Do You Need?

 

Are you applying for a home loan? If yes, you need to get your home loan application and documentation in the right order. For a fast home loan approval, documentation plays a vital role in validation and verification. You need to fill up the application form properly and do not leave any information empty. Do not forge any information as you need to provide supporting documents for everything that you provide in your application. If you do not provide all the necessary documents, your loan application will be suspended or rejected. Documents are different for salaried and self-employed individuals.

You must take care of the duly filled application form and the below necessary documents, as required. Learn How to calculate business loan by using business loan calculator.

Identity Proof

●     Aadhar card

●     Pan card

●     Driving Licence

●     Passport

●     Date of birth

●     Voter ID card

Address proof

●     Electricity bills

●     Telephone bills

●     Voter ID card

●     Aadhar card

●     Ration card

●     Water bill

●     Mobile bill

●     Broadband bills

●     Property tax

Account statement proof

●     Last 6 months Bank Account Statements for all Bank Accounts held by the applicant

●     If any previous loan from other Banks then Loan A/C statement for last 1 year

Self-employed documents

●     Business address proof

●     Property details

●     Business License Details

●     Certificate of qualification

●     IT returns for last 3 years

●     TDS Certificate

●     Balance Sheet & Profit & Loss A/c for last 3 years

●     Form 16

Salaried employees documents

●     Salary slips

●     Salary account statement

●     Form 16

●     Employment proofs

●     IT returns for 2 years

●     Salary certificate

Common documents

●     Loan application form

●     2 passport size photograph

Property documents

●     Permission for construction

●     Letter/Stamped Agreement for Sale

●     Share Certificate

●     Occupancy Certificate

●     Maintenance Bill

●     Payment Receipts or bank A/C statement showing all the payments made to a seller

●     Electricity Bill

●     Registered Agreement for Sale

●     Allotment copy

●     Approved Plan copy

●     Registered Development Agreement of the builder

●     Property Tax Receipt

●     Conveyance Deed

Wrapping up

Home loan applications and documentation are very important to get approval. If you need a fast home loan approval without any delay, you need to complete your application with the documentation. Submit all the original copies, and do not forge any documents as that will straightaway be rejected.

Must Read : 5 Things You Didn’t Know About Home Loan in Delhi

Negotiate the Best Terms while Applying for Home Loan

 

While applying for a home loan, you must negotiate with your loan provider. A homeowner needs to meet the eligibility criteria and then negotiate terms using those factors. When you negotiate you get not only favorable terms but also rates and charges. It is always safe to have an affordable home loan. You cannot opt for an expensive home loan for years. This will become a burden. A home loan goes on for 20 to 30 years, and you cannot afford to pay a high rate of interest. It becomes a burden and you end up being in a debt trap. To avoid all these uncertainties, you need to negotiate on the following terms at the time of taking a home loan.

●     Rate of interest: You must negotiate with your loan provider to get a low rate of interest. If you are meeting all the eligibility criteria you are an asset you have the complete right to negotiate and get a better rate. The more you negotiate, the better rate of interest you get. Even a slight change due to negotiation will impact a lot in the long run. It is not a fixed rate and is subject to changes and variations. If you need an affordable loan, you need to negotiate. The rate of interest can either make your loan expensive or affordable. It depends on you how well you negotiate and get an ideal rate of interest on your home loan. Learn How to calculate business loan by using business loan calculator.

●     Charges: Various charges come along with your borrowing. When you take a home loan you need to incur the charges. You must negotiate with the loan provider on getting a low-cost loan. The charges are not fixed. They are variable and you need to choose an ideal loan that has an affordable cost. When you negotiate for low charges on your home loan, it becomes an affordable loan. An affordable home loan will help you get the best loan cost after you have compared all the available options from the market.

●     Tenure: Negotiate on the terms of the tenure of the loan. If you need a long-term loan and your loan provider is offering you a short-term loan you can negotiate for a better term on loan. This will help you deal well with the home loan and get an EMI that suits you well.

Wrapping up

Whether you take a home renovation loan or a house repair loan, you need to negotiate on getting an affordable loan. You cannot go for an expensive loan, as that turns on to be a debt trap later on.

Read Story : Mind-Numbing Facts About Getting a Housing Loan

Act Smartly and Reduce Home Loan EMI Even If Banks Don’t Lower down the Rates

 

Banks and non-banking financial institutions may seem to offer you a high rate, even after having high eligibility criteria. When rates are high, you will always get a high EMI to pay. You need to understand various ways by which you can reduce your home loan EMI so that you can cut down the burden of EMI and very smoothly make the payment every month. You must negotiate with your loan provider on a low rate and charge, but when everything fails, you need to try out some ways by which you can reduce your home loan or house renovation loan EMI. It will help you with an affordable EMI and this is easy for you to repay every month. Here are some of the ways by which you can reduce your EMI every month.

Down payment is the initial payment an individual has to make on the value of the property for purchase. Downpayment is important when you need a home. It is the amount that you have to pay for purchasing a home.   When individuals make a higher down payment, they need to borrow a lower principal amount and consequently lower their interest payable. It is important to understand that when you pay a high amount in down payment, you will always get a low EMI. It will help you handle your borrowing in the right way.  Thus, even though making a larger down payment might seem like a liability, it can help borrowers save money in the long run. So, if you feel that you need the right borrowing experience, you have to make sure that you get your down payment done. However, before choosing to make a higher down payment, borrowers must learn how to calculate home loan EMI, to know their repayment liability on the amount borrowed. Learn How to calculate business loan by using business loan calculator.

Borrow a low amount of money: You need to wait or arrange money till you find the right EMI to pay off. A high EMI is always a burden to pay off every month. You can decrease the EMI amount when you borrow a low amount of money. Make sure you make the right move and get the borrowing amount that will help you get the right EMI that does not become a burden on you.

Wrapping up

Whether you need a house renovation loan or a normal home loan for yourself, you need to compare and then choose an ideal and affordable option. When you borrow a personal loan it will help you to meet all your wishes of having your own home.

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