Documents Required for a Home Loan in 2024
Prospective homebuyers can avail of a Home Loan with MortBuzz Home Loan Solution and enjoy a seamless process of loan disbursal. Our documentation requirement is minimal, ensuring quick disbursal after document verification. Keeping all the documents handy can streamline your Home Loan application process.
As a part of your housing loan application, you will be required to submit certain documents, such as KYC documents, and proof of income, which helps in determining your Home Loan eligibility. This document verification validates the existence of the property, proof of ownership, proof of sale etc., depending on the nature of the property and type of transfer. The list of documents required for a Home Loan may vary based on your occupation or employment type. Read along to get further insights about the same.
List of Home Loan Documents for Salaried Applicants
Here is a checklist of the essential documents for salaried applicants:
1. Completed and signed Home Loan application form
2. Mandatory Documents (Any one of the below)
- PAN Card
- Form 60
3. Proof of Identity: (Any one of the below)
- Aadhaar Card
- Driving Licence
- Voter’s ID Card
4. Proof of Age: (Any one of the below)
- Birth Certificate
- Aadhaar Card
- Passport
- Bank Account Passbook
- Class 10 Marksheet
- Driving Licence
5. Proof of Residence: (Any one of the below)
- Aadhaar Card
- Utility Bills like Electricity Bill, Telephone Bill, etc.
- Passport
- Voter’s ID Card
- Ration Card
- Certified letter by recognised public authority
6. Proof of Income:
- Payslip for a minimum of last 3 months
- IT returns of a minimum last 3 years
- Form 16
- Certified letter from employer
- Promotion or increment letter
7. Other Documents:
- Passport–sized photographs of applicants and co-applicants
- Proof of self-contribution
- Ongoing loan details
- Bank statements of the last 6 months showing repayment of loans, if any
- Cheque for processing fee towards the Home Loan provider
- Employment Contract or Appointment Letter
8. Property Documents:
- Title Deeds
- Receipt of payment to developer or seller
- Allotment Letter or Buyer’s Agreement
- Sales Agreement
- Construction estimate details by architect or civil engineer
- Plans approved by local authorities
- Proof of no encumbrances on property
Disclaimer: Additional documents may be requested at the time of loan processing.
List of Home Loan Documents for Self-Employed Applicants
The following is the list of Home Loan documents for self-employed applicants:
1. Completed and signed Home Loan application form
2. Mandatory Documents (Any one of the below)
- PAN Card
- Form 60
3. Proof of Identity: (Any one of the below)
- Aadhaar Card
- Driving Licence
- Voter’s ID Card
4. Proof of Age: (Any one of the below)
- Birth Certificate
- Aadhaar Card
- Passport
- Bank Account Passbook
- Class 10 Marksheet
- Driving Licence
5. Proof of Residence: (Any one of the below)
- Aadhaar Card
- Utility bills like Electricity Bill, Telephone Bill, etc.
- Passport
- Voter’s ID Card
- Ration Card
- Certified letter by recognised public authority
6. Proof of Income:
- Balance sheet and Profit and Loss Statement of the business attested by registered CA
- Income tax returns of at least the last 3 years
- Business licence or other similar documents
- Professional practice licence for doctors, consultants, etc.
- Registration certificate of business establishment for shops, factories, etc.
- Business address proof
7. Other Documents:
- Passport–sized photographs of applicants and co-applicants
- Proof of self-contribution
- Ongoing loan details
- Bank statements of the last 6 months showing repayment of loans, if any
- Cheque for processing fee towards the Home Loan provider
- Title Deeds
- Business profile
- Most recent Form 26AS
- List of Directors and Shareholders with individual shareholding certified by a CA or CS
- Partnership deed if the business is a partnership firm
- Articles of Association and Memorandum of the company
8. Property Documents:
- Title Deeds
- Receipt of payment to developer or seller
- Allotment Letter or Buyer’s Agreement
- Sales Agreement
- Construction estimate details by architect or civil engineer
- Plans approved by local authorities
- Proof of no encumbrances on property
Disclaimer: Additional documents may be requested at the time of loan processing.
Home Loan Eligibility Criteria in 2024
Potential borrowers should meet certain Home Loan eligibility criteria before applying for a housing loan to experience hassle-free loan processing. These include parameters related to age, income, employment status, credit score, and property value.
Both self-employed and salaried individuals can avail of a Home Loan against separate sets of Home Loan eligibility requirements. The eligibility criteria for a housing loan from MortBuzz Home Loan Solution are simple and easy to meet. Before applying for a loan, you can check your Home Loan eligibility with the help of our Home Loan Eligibility Calculator.
Check housing loan eligibility for both salaried and self-employed individuals below:
| Salaried Individuals | Self-Employed Individuals |
|---|---|
| The applicant must be employed with a stable source of salaried income from a public, private or a multinational company with a minimum 3 years of work experience | The applicant must be self-employed with a business continuity of over 5 years in the current enterprise |
| He/she must be between 23 and 75 years** of age | He/she must be between 25 and 70 years** of age |
| He/she must be an Indian (including NRIs) | He/she must be an Indian (resident only) |
Note that the Home Loan eligibility requirements are indicative and can include additional criteria.
**The upper age limit is considered as the age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.
Professionals, namely doctors and chartered accountants, can also apply for a housing loan for a competitive offer. While all criteria remain the same as stated above, professional applicants must also meet additional qualification criteria. Doctors must hold an MBBS or a subsequent higher degree, and CAs must have a valid COP.
Note: In the case of professionals, the years of experience are counted post qualification.
Factors Affecting Home Loan Eligibility
The Home Loan eligibility of an individual depends on various factors. These include:
1. Applicant Age
An individual’s age determines a suitable tenor for the Home Loan. Applicants at the early stage of their career can conveniently avail of the loan for an extended tenor due to their repayment potential for a long term, as compared to those who are nearing their retirement. Thus, age is a criterion taken into consideration when assessing eligibility.
2. Credit Profile and Score
An applicant’s credit profile and score are other essential Home Loan eligibility parameters that help lenders identify the risk involved in extending the loan. Individuals with a high credit score of over 750 and a healthy credit profile of timely repayments stand a better chance of receiving prompt approval for a housing loan.
3. Employment Status/Business Stability
Based on the applicant’s profile, financial institutions also check their income stability. Employment of 3+ years for salaried applicants depicts a stable income source and an increased propensity for timely repayment.
Similarly, self-employed individuals with a current business vintage of 5+ years depict suitable Home Loan eligibility with stable occupation and a reliable income for timely repayment.
4. FOIR
Fixed Obligation to Income Ratio, or FOIR, is a measure of an applicant’s repayment capacity. It is calculated as a percentage of one’s monthly income against the fixed monthly liabilities, such as EMIs and rent. FOIR contributes to the overall housing loan eligibility and a lower FOIR can enhance your chances for a quicker sanction.