Friday, September 30, 2022
HomeBusinessGuide: How to Get a Home Loan with Just a Few Documents?

Guide: How to Get a Home Loan with Just a Few Documents?

In recent years, obtaining a Home Loan has become increasingly difficult. Lenders have tightened their requirements, making it necessary for potential borrowers to provide more documentation than ever. This can be challenging for those who are self-employed or have other unique financial circumstances.

Fortunately, there are still many options available for those willing to do their homework and look around when it comes to the question of how to get a Home Loan. With a little effort, it is possible to find a lender who is willing to work with you and provide the financing you need for the home purchase. 

What Do You Need To Know Before Applying For A Home Loan?

If you’re like most people, the largest financial transaction you will ever make is buying a home. However, you probably won’t have cash on hand to buy your dream home outright. This is where getting a Home Loan comes in. But before you start searching for the best mortgage rates, there are a few things you need to know. So here are a few essential documents you’ll need when it comes to answering the question of how to get a Home Loan:

  • Previous three years’ tax returns: NBFCs want to see that you have consistent income and to know the same they use your tax returns to verify this.
  • Your last three pay slips: Lenders will use your pay slips to verify your income and employment status. This document is required in the case of salaried applicants only.
  • Your bank statements: Using this information NBFC determines if you have enough assets to cover the mortgage payments or not. 
  • Credit report: Lenders assess your credit report to see if you have any previous delinquencies, which could indicate a higher risk of defaulting on your property Mortgage Loan.

Minimal Documents To Get A Home Loan 

You may be surprised to learn that you don’t need a long list of documents to get a Home Loan. Instead, there are only a few essential documents you’ll need. Here’s what you’ll need when it comes to getting a Home Loan:

  • A passport-sized photograph
  • Proof of identification, such as your PAN card, Aadhar card, or voter identification card
  • Proof of residence such as a recent passport, voter identification card, driver’s license, Aadhar card, or utility bill

Additionally, you will be required to submit the following income proof along with the above documents:

Applicants With A Salary

  • A copy of your last three salary slips
  • A copy of Form 16 and the last three years’ income tax returns
  • Detailed bank statements for the past six months
  • Statements of any other bank account for the previous six months
  • Detailed information about any existing loans and their track record
  • Legal documents of the property
  • Letter of sanction

Self-Employed Applicants

  • Statements of bank accounts or passbooks for the previous year 
  • A bank statement from any other account. The name and account number of the account holder, as well as the name and branch of the bank, must be included in the bank details. Otherwise, the document won’t get approved for the loan application.
  • Accounts and balance sheets should be certified by a Chartered Accountant for the last three years.
  • Documentation of degree completion
  • Past three years’ income tax returns, including those filed by your business.
  • A registered partnership deed must be provided if your business is a partnership firm.

Before commencing the loan application process, make sure that you have these documents at hand. Additionally, a lender may evaluate various factors to determine your eligibility for the property Mortgage Loan. These factors may include your credit history, monthly earnings, professional profile, work history, etc. Therefore, before beginning the loan application process, you should minimise your debt-to-income ratio and improve your credit score to improve the chances of your approval.

Conclusion

Getting a Home Loan with minimal documents is possible if you have a good credit score and income. You need to provide some basic information, such as your name, phone number, date of birth, and address. The lender will also need to see your bank statements and tax returns. If you have all of these basic documents, you should be able to get a Home Loan with minimal hassle.

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