Applying for a home loan is a new phase in your journey to owning your dream house. It may sometimes get overwhelming, but with our guide to the home loan process, it may get simple. While there may be small differences from one bank to another, the usual process is common for all banks.
Taking a home loan is a convenient way to own your dream house. They are simple to repay and convenient to avail. All you need to do is visit your bank and fill an application or do the same online. You don’t have to worry about paying the whole amount in one go. You can choose a period that allows you to repay the loan in easy and equal monthly installments. You can use the house loan calculator to calculate the EMI amount you must pay every month, depending on your principal amount, interest rate, and tenure.
To complete the home loan application procedure effectively, you should fill in the form accurately. Also, ensure the documentation submitted is authentic. If your documents are not up to the standard, it is possible that the bank may refuse your application.
Documents required for a home loan
KYC documents to prove your identity
- Adhaar card
- Voter ID card
- Driver’s License
- PAN card
Documents with your address to prove your residency
- Bank statement featuring your address
- Utility bills like electricity bill
- Driver’s license
- Adhaar card
- Rent agreement
Documents that prove your age
- Birth certificate
- PAN card
- Driver’s license
- 10th mark sheet
While filing for a home loan, you should send documents related to the property to the bank.
- Title deed
- NOC (No Objection Certificate)
- Sales deed
- Copy of payment cheques or receipts made to the owner of the property
- Electricity bills and maintenance receipt
- Property tax papers
- Occupancy certification
- Building plan copy
- Sanction letter
- Construction cost estimation paper
Income documents to prove your source and amount of income
If you’re a salaried person:
- Bank statement for the past six months
- Salary slips for three months
- Form 16 or ITR returns for the past three years
If you’re a self-employed person:
- PAN card and address proof of your business
- VAT/ GST registration certification
- ITR for the last two years
- Audited P/L and Balance Sheet attested by CA for the past three years
- Partnership deed in case of a partnership firm
- Memorandum of Association in case of a company
You should collect all the documents needed for home loans with the latest details. If you submit an incorrect or incomplete document, it may lead to the rejection of your application, affecting your CIBIL score.
Significance of documents when filing for a home loan
The document for a loan means showing all the documents to the bank or lender to approve your loan. For a home loan, you need to submit the documents mentioned above in the given time. The documents help you secure loans easily.
In today’s situation, your home loan will never get approved without the right documents. Your documents further help decide the interest rates, tenure, and EMI.
Calculate your housing loan EMI
Repaying your home loan with interest in a given time needs effective financial planning. People also need to assess their repayment abilities to reduce the risk of default. Using the Kotak house loan calculator, you can easily get an estimate of your home loan EMIs.
Just enter the amount of loan principal, repayment tenure, and rate of interest, and the house loan calculator will compute the installment amount within seconds. You can make your decision accordingly.
Features and benefits of home loan calculator
- It is a convenient and easy way to calculate your home loan EMI from the comfort of your home.
- It helps you get and compare your interest’s exact figure with the other banks.
- You can get the results within minutes
- You can choose the loan tenure at your convenience, keeping your other expenses in consideration
- It helps with effective financial planning
Submitting the right documents required for home loan to your bank is essential to eliminate the risk of loan rejection. Keep the list mentioned above in mind when filing for a home loan. If your bank asks for any extra document, make sure you add it, as the requirements may vary.