Do you want to apply for home loan? If so, then begin by comparing lenders to choose the one offering the most competitive home loan interest rates in India.
Are you planning on buying a house in Ahmedabad using easy home loans? Well, that’s great! The excitement of embarking on a journey towards homeownership can never be overstated. However, to get your application approved, you need to furnish some essential yet highly important home loan documents. Read more to know about the primary documents required for getting a home loan in Ahmedabad.
Checklist of the Most Important Home Loan Documents
The following documents are required, after the verification of which, the lender will approve your home loan application –
- Age proof – Copy of your Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card, and School Leaving Certificate
- Photo identify proof – Copy of your Voter ID/Passport/Driving License/Aadhaar Card/PAN Card
- Address proof – Copy of your Utility Bills/Bank Statements/Property Registration Documents/Property Tax Receipt/Voter ID
- Salary slips – Copy of your Salary A/C and bank statements of the last six months
- Existing loan details – to be provided through bank statements
- Processing fee cheque – To be issued from the Salary A/C of salaried individuals and the Business A/C in case of self-employed individuals
Why Do You Need These Documents?
Providing correct housing loan documents is a home loan eligibility criterion of sorts because if on verification, the lender finds any discrepancies in your paper, or you end up submitting the wrong ones, your application for a home loan may be declined.
However, why the need for such extensive documentation? Given below are the reasons.
Reason #1 To know your nationality and age
One of the most significant reasons for asking home loan documents is to confirm the nationality and age of the applicant. Age is a critical determinant in home loan eligibility – it helps the lenders decide whether to allow you to opt for a longer tenure or not.
However, remember that if you opt for a longer tenure, the home loan interest outgo will be higher.
Reason #2 To know your repayment capabilities
The lender wants you to steer clear of home loan EMI defaults as much as you do. And to ensure the same, they ask for income proof documents. Only once they are convinced of your repayment capacity, will they sanction your housing loan.
Reason #3 To know your credit history
Home loan lenders get a good idea of the sort of borrower you are likely to be – low-risk or high-risk – depending on your credit history. Your credit record is assigned a score known as the CIBIL or credit score. A score of 750 or above can bag you low home loan interest rates; whereas, lenders may charge higher home loan rates for a poor credit score or downright reject your application.
Moreover, before you apply for your home loan online, don’t forget to use free online home loan calculators including the home loan eligibility calculator to determine eligibility.
Also, checkthe home loan EMI calculator to know your EMIs in advance.
The EMI value displayed by the EMI calculator for home loan will help you plan your EMIs to avoid defaults.