Buying a house is one of the biggest dreams come true for most people and an extravagant affair altogether. Imparting life to such a dream requires a lot of effort from the buyers’ end and the best one can do to accommodate the home in their budget is through a home loan. A home loan can be opted to buy a new house/flat or a plot of land where you construct the house, and even for renovation, extension, and repairs to an existing house.
Choose a home loan that suits your needs
Tax Saving through home loans
All you need to know
This is the most common type of home loan availed to purchase a house. There are many housing finance companies, public banks, and private banks that offer housing loans where you borrow money to purchase the house of your choice and repay the loan in monthly installments.
You can get up to 80%-90% of the house’s market price in the form of financing. The lender will hold the house until you completely repay the loan.
- Salaried (Resident and non-resident Indians)
- Professionals (Chartered Accountants, Doctors)
- Sole Proprietors
- Partnership Firms
- KYC of the applicant and co-applicant (Aadhar Card, Pan Card)
- Current address and identity proof (Passport, Driving License )
- Employment certificate
- Last 6 months salary slip
- Bank statement where salary is getting credited of Last 12 months
- Last 2 years of form 16 and Income Tax Return with computation.
- Sanction letter or Schedules of Running loans
- For NRI cases general power of attorney to local resident ( blood relation ) ( For Home Loan cases )
- KYC of promoters and business entities.
- Last 3 years financials (P&L, Balance Sheet with complete audit report), or working capital cases last 4 years financials required.
- Projected financials for the current year (on case to case basis).
- ITR with computation for last 3/4years with computation of business entity.
- Last 12 months bank statement of the business entity (18 months in banking Surrogate cases).
- Last 12 months bank statement of promoters and ITR with computation.
- For rental income lease agreement on case to case basis.
- Last 13 years property documents with complete chain of property with last utility bill payment.
- For LRD cases (refer us for an exhaustive list) as required on case to case basis.
- Basis FOIR ( Fixed Obligation to Income ratio )
- All programs for income calculation like Gross margin, Turnover, Banking, Low LTV, and GST.
- Loan to Value (% to MV /AV as per applicability)-.Same range from 60-80 percent depending on the loan ticket size
- Property acceptability basis technical and legal authenticity by the financial institution empaneled agencies.
All KYC documents should be
- clear and easily readable
- verified with the originals checked at our end for details like Name, Date of Birth, Signatures, and address mentioned are latest.
- If any document is not up to the mark with bank standards, then an alternate as per bank KYC policy will do.
KYC is a very important part of the home loan application any leniency can lead to rejection of the loan.
- The property paper complete and clear copy of the full chain should be collected which will help in completing the legal process on time
- You should check whether the necessary details are clear and readable
- Sanction map approved from respective authority should be collected if applicable
- Check whether all documents are present in original and not laminated.
- Agreement to sell in purchase cases should be checked properly and collected before registry to avoid any miscommunication at the time of registry
- The bank statement should be at least of current 12 months and 18 months if the file is in the banking surrogate program.
- You will need bank statements of accounts like current a/c, CC a/c, Overdraft A/c, and all Saving a/c.
- Collect all the sanction letters with all conditions clearly mention running loans
- You must collect statements of loan EMI
- The bank statement must have the bank logo and bank details clearly mention. Try to collect all statements in PDF formats also.