8 Point Check List while Applying for Housing Loan

• 10 July 2016 | 1600 Views | By Mint2Save

Waking up in your own house gives a different kind of calmness and pleasure. Approaching the bank for loan, is, on the contrast, a difficult task as they are going to investigate everything about you and would sanction your loan only after making sure that they know you as much as a family member.
It is always smart to be proactive and come prepared to the bank when you approach for the loan. Some people like to approach middlemen (CA’s and accountants), who comfort you at once, and then hand you a huge list you need to take care of before hitting the bank for loan.

Before setting foot in the bank, follow this eight point checklist that will take care of most of the task the bank would ask you to do. They hand you a checklist, and ask you to come back with the data. In this article, we present you a checklist compiled on a general requirement basis and whose some or all parts would be required by every bank to be fulfilled.

1. Income Proofs: The only way through which the maximum amount for home loan can be decided is income proof. In case you are salaried, take at least your last 3 months salary slip along with the Form 16 for past 2 financial years.

If you are a businessman, you need to take your latest Income Tax Returns for past 2 years. If your returns are not regular and you have filed the returns in the same financial year, your income is regarded as inconsistent. In this case, you need to take more income tax returns which are filed regularly.

2. Bank Account Statements: If your transactions are in some other bank and you are approaching a different bank, take account statement of past 6 months. The account statement is required as then the financier can understand on how is the nature of your transactions and whether their are any cases of cheque returns. The account statements additionally serve as a proof of income (which is usually transferred to your account).

3. Identification Proofs: Always carry the original as well as self attested photocopies of your identification proofs. Usually, banks require 2 identification proofs out of which a PAN Card is compulsory and other can be any address of your current residence or permanent address.

4. Loan Records: If you have taken any previous loans, irrespective of the fact that they are currently running or not, take their sanction letter and, if possible, account statements.

5. Legal Papers: No bank is going to sanction a housing loan if the property has a legal issue or is defective at some point. Do make sure that you have all the legal papers of the property irrespective of the fact that you approach for a construction loan, purchase or renovation. The property gets mortgaged with the bank and a prime check to legal papers is to be given before you approach for the loan.

Take a photocopy of these legal papers as the bank’s empanelled lawyer would check it and would also verify the same from the original.

6. Expected Valuation and Estimation: When you are going to purchase a house, you need to get a rough idea of its valuation, as the bank would not invest more than the actual market price of the property.

When going for a construction or repair & renovation loan, do keep an idea of how much would be the estimate of the whole work. You can approach an bank approved engineer who can do the job for you at nominal prices.

7. Communication and Permanent Address Proof: If your present residential address is different from that mentioned on your Government issued Identity cards, you might need to get a proof like a letter issued from your organisation or rent agreement.

8. Miscellaneous Requirements: Apart from everything mentioned above, do not forget to take a few passport size photographs, crossed cheques (for security as well various payments).

When you see a hoarding or listen to an advertisement saying get a home loan in two days, do remember that those two days always count after you submit all the required documents and all formalities are done. Following this checklist would make sure that those two days, come sooner.