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If you are in the market to buy a new house, one of the things you can consider making your home buying journey easier is a home loan. While financial institutions like banks and housing finance companies are lining up to offer attractive home loan deals, you need to meet their standard requirements and submit the mandated documents to be able to secure a home loan of your choice. These documents help in the application process, ensuring that you are eligible for their loan offerings. There are chances of your home loan application being rejected if you don’t have your documentation in place, which is why it is essential to have a checklist of all the necessary documents beforehand.

A home loan is instrumental in helping most of us realise our dream of becoming homeowners and preparing for the application journey will make it easier for you to get approved. In the checklist we have compiled, you will find all the documents you will need to get your home loan approved without any hassles. Read on to learn more.

What is Home Loan Eligibility?

The foremost thing lenders consider when looking at a home loan application is the applicant’s eligibility. They have their own criteria against which they measure your eligibility for a home loan. It refers to all the requirements you must satisfy to be considered a good candidate for your desired home loan amount. Common home loan eligibility criteria include:

1. Age

Your age is an important factor in your home loan application. People who are younger with a longer work tenure ahead of them have a greater chance of getting approved. On the other hand, applicants nearing retirement may not be eligible for the most favourable housing loan terms, resulting in either higher rates of interest or a shorter loan tenor.

2. Financial Standing

Your financial standing is indicative of your income flow and your ability to repay a loan. Lenders assess an applicant’s financial standing before sanctioning a loan to weed out high-risk candidates who are likely to default on EMI payments. Your monthly income must be high enough to support the loan amount you have applied for. Most leading lenders expect a minimum monthly income of Rs.30,000 to consider your home loan application.

3. Credit Score and History

Sporting a spotless credit history is beneficial to your home loan application. It proves to your lender that you are creditworthy and projects you as a reliable borrower. To get attractive home loan deals from lenders, prospective borrowers are advised to have a credit score of 750 and above.

If you are still uncertain about your home loan eligibility, make use of the Home Loan Calculator and get a realistic overview of your home loan asks and your ability to repay it.

Benefits of Using a Home Loan EMI Calculator

Most lenders offer online tools to help borrowers make informed decisions. You can use any of these tools online, such as the Bajaj Housing Finance Limited Home Loan EMI Calculator. Here are what prospective borrowers will be privy to when they make use of this handy tool.

1. Simple Estimation

A Home Loan EMI Calculator ensures that the user gets an accurate picture of what they are liable to pay as the total interest and EMI on their home loan. This preview allows you the luxury of planning your financial obligations for the future in a way that is comfortable and convenient to you, without the hassle of manual, complex calculations.

2. Customised Tenor Options

The Home Loan EMI Calculator offers a customised EMI forecast based on the tenor you choose, giving you the freedom to opt for a tenor that will most benefit you. Several lenders offer a longer repayment period that spans up to 30 years for home loans, to eligible applicants with a strong credit profile.

A Comprehensive List of the Documents Required for Home Loan

The documentation checklist* we have prepared is broken down into tiers to better guide you through your application process. Make a note of when you may need these documents and keep them ready accordingly.

Basic Documents

- A completed housing loan application form

- Photographs (passport size)

- Proof of identification (PAN card, Aadhaar card, a voter ID card, a driving license, or a passport)

- Proof of your age (Aadhaar card, PAN card, a passport, a birth certificate, a bank passbook, or a driving license)

- Proof of residence (a bank passbook, a voter ID card, a ration card, a passport, a utility bill like the telephone bill, electricity bill, water bill, gas bill, a LIC policy receipt)

 Proof of Steady Income

- If you are a salaried applicant, you will need to provide the last 3 months of salary slips, with your ITR (2 years) and bank account statement for the last 6 months.

- Self-employed applicants need to be able to showcase steady income from a business with a vintage of at least 5 years. The documents for this include the bank account statement for the last 6 months, profit and loss statement, and ITR.

Property documents you will need to submit for a home loan application

- A registered sale deed, allotment letter, or original copy of a stamped agreement of sale with the builder

- A copy of the Agreement

- A copy of the Approved Project Plan/MAP

- A Certificate of Occupancy if your apartment is ready to move in

- Receipts of property tax payments

- An approved copy of the building plan

Other Documents

- In the case of a balance transfer, you will need to submit an NOC, your sanction letter, statement of account (SOA), and foreclosure letter

- In case you are claiming additional income from other sources, you will need to provide supporting documents for the same. For instance, rent from another property or investment dividends

*This is an indicative list, and your lender can request for more documents once you begin the application process.

Apply for a Housing Loan Today

Taking a home loan is a big leap towards owning a home and all it takes is a checklist to ensure you meet all the simple requirements. Leading lenders offer competitive housing loan deals, with affordable home loan interest rate and easy-to-meet pre-requisites.
 

Disclaimer: This content is distributed by Bajaj Housing Finance Ltd. No HT Journalist is involved in the creation of this content.
 

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