Important Documents Which Will Make Your Home Loan Eligibility Easier

Due to the reduction in home loan rates in recent times, there has been a rising demand for residential properties in India. To bolster this growth, apart from offering lower interest rates, financial institutions are also extending discounts on processing fees and other special benefits. 

Now, at the time of home loan application, lenders ask for certain documents to ascertain a borrower’s eligibility. Apart from satisfying the eligibility requirements, individuals must gather information about the documents required to ensure that their loan application process is completed without hassle. 

Following is a list of documents required for home loan application.

Essential home loan documents 

  • Filled up home loan application forms are mandatory to initiate the process. 
  • Borrowers need to provide photographs (passport-size). 
  • They must also provide any one identification proof, like Aadhaar card, PAN card, etc.
  • The residential proof is also a must. One has to submit any one of these following documents before applying for a home loan – utility bills, passbook, etc. and a recognised public authority letter verifying the customer’s address. 
  • Income details are essential documents required for home loan for salaried and self-employed applicants. The latest salary slips and account statements of the last 6 months are necessary. 
  • Additionally, self-employed individuals must present proof of 5 years of business continuity. 
  • Lastly, property documents are a must when it comes to securing a home loan. These generally include a NOC from society or builder, a detailed estimate of construction costs of the house, registered sale deed, occupancy certificate, property tax receipts, advance payment receipts, approved copy of building plan, original land tax paid receipt, and a payment receipt showing payments made to the builder. 

In addition to submitting these documents while applying for a home loan, applicants must take the designated eligibility requirements into consideration. 

Eligibility criteria for the home loan application process

  1. The age limit for salaried and self-employed applicants should be 23 to 62 years and 25 to 70 years, respectively. Age proof is a must among the documents required for home loan application procedure.
  2. Both the category of applicants should be resident citizens of India. 
  3. For salaried and self-employed individuals, work experience should be 3 years and 5 years respectively.

Apart from these, applicants must also be careful to maintain a credit score of 750 or higher to ensure that their loan application is approved without hassle.

Individuals can also access pre-approved offers from leading HFCs that can make applying for these loans faster and easier. These offers are available on various products like home loans, loans against property, etc. Check your pre-approved offer by providing your name and contact number.

In case borrowers fail to satisfy the above-mentioned eligibility requirements, they can adopt a few measures to boost the same. Any HFC will judge an individual’s creditworthiness before approving a home loan with better interest options. 

Measures to increase home loan eligibility

  • The first and foremost step to follow before applying for a new home loan is to clear all the existing credit debts. 
  • Choosing a longer tenor will allow the borrower to repay the loan amount comfortably without any chances of delay. Nonetheless, opting for a longer tenor also leads to higher interest outgo.
  • Additional sources of income are also a plus when it comes to boosting home loan eligibility
  • To enhance the eligibility, it is advisable to have a co-applicant during home loan application.

Therefore, by following these few tips mentioned above and by providing appropriate documents required for home loan application, one can ensure hassle-free loan approval.