Comprehensive Checklist of Documents Required for Home Loan

Documents are essential for the approval process when applying for a home loan. In order to assess the borrower's legitimacy and calculate the loan amount and interest rate, lenders often seek documentation proving the borrower's identification, property ownership, and evidence of income. Therefore, this article will list all the important documents required for a home loan so that borrowers can have a hassle-free credit-securing process. 

Documents required for home loan

Home loan applicants must provide a set of documents in order for their loan application to be granted, regardless of whether they are salaried or self-employed.

Here is the list of documents for a home loan one must present along with their application:

1. Identity proof

• Voter ID Card

• Aadhaar Card

• Driving Licence

• PAN Card

• Passport

2. Residence proof

• Bank Passbook

• Aadhaar Card

• Voter ID Card

• Passport

• Ration Card

• Utility bills

• Insurance Policy Receipt

• Letter of address verification from a recognised public authority

3. Age proof

• PAN Card

• Aadhaar Card

• Class 10th Marksheet

• Passport

• Birth Certificate

• Bank Passbook

• Driving Licence

4. Income proof

Documents for salaried applicants:

• Form 16

• Certified letter from the employer

• Payslips for the last 2 months

• IT returns for the past 3 years

• Appraisal/Promotion letter

• Investment proofs (if any) like FDs, shares, etc.

Documents for self-employed applicants:

• Income Tax Returns (ITR) for the last 3 years

• Proof of business address

• Profit & Loss Account Statement and Balance Sheet of the Company/Firm attested by a registered CA

• Business Licence Details

• The licence of Professional Practice (e.g., doctors, lawyers, consultants, etc.)

• Registration Certificate of Establishment (applicable for factories, shops, or other establishments)

Submitting the documents required for a home loan must be done accurately in order to obtain  a home loan without unnecessary delay or hassles. The documents mentioned above help lenders assess the borrower's financial capacity, creditworthiness, and the value of the property. It is essential that all necessary documents are double checked in order to avoid rejection in the loan approval process.