Rapid urbanization, nuclearization of families, lower mortgage penetration brought in higher scopes of boosted housing demands. These rising demands are well substantiated by the growing government endeavors that include the Pradhan Mantri Awas Yojana to ensure affordable housing options for all. Along these lines, reputed HFCs have been providing a quick home loan that comes with an array of lucrative benefits.
Such housing advances cater to the varying housing financial requirements of individuals. Nevertheless, considering that advances are long-term financial options, the financial consequences that come with it are also long-term. Consequently, borrowers need to approach a lender after preparing a checklist for the loan to-be-availed. It ensures that they make the most of their availed loan sans straining their finances.
Checklist to avail home loans
* Documents required
– Salaried applicant
- Following documents are required for your home loan approval –
- 3 passport size photographs.
- Identity proof: Aadhaar Card/ Voter’s ID Card/ PAN Card/ Driving license/ Passport.
- Address proof: Aadhaar Card/ Voter’s ID Card/ Electricity bill/ Telephone bill.
- Financial account statement for the previous 6 months.
- Original last month’s salary certificate.
- Tax Deducted at Source or TDS certificate – Copy of I.T. or Income Tax Returns or Form 16 for the past two financial years.
- Acknowledgment of duly filled IT returns.
- Income computation.
- Copies of challans according to advance payment of IT.
- Signature identification.
Self-employed applicant
ID proof.
Business address proof may include PAN card/ Electricity bill/ SEBI registration certificate/ Passport/ Telephone bill/ Rent agreement on stamp paper (if any)/ Tax receipt.
Income proof which may include income tax returns/ balance sheet along with all annexures/ last 6 months’ financial account statement.
Eligibility criteria of housing loan
* Salaried applicant – The age limit of salaried persons should be within 25 and 58 years. Apart from this, the eligibility criteria for home loan also include that an applicant should be a citizen of India with at least 3 years of working experience in an organization.
* Self-employed borrower – For a non-salaried applicant, the age limit should be within 28 and 70 years. He/she must be an Indian citizen with at least five years of business vintage.
Check up with the LTV and decide upon a suitable lender
Evaluation of your mortgage for a home loan is essential, considering that the market price of your mortgaged house plays a significant role in determining your sanctioned loan amount. Make sure that the mortgaged property –
It is located within the serviceable range of the lender.
Is in proper condition to generate property value.
A lender analyses a loan to value ratio (that may go up to 80% to 90%) to determine the loan amount to be sanctioned.
Look into the amount to be availed
Before applying for the home loan, calculate the required amount so that you do not borrow more than what is needed. Check the total cost of buying a house and avail accordingly so that the additional financial burden during repayment can be avoided.
Check up on your current CIBIL score
The ideal CIBIL score for a home loan should be 750 and above. A higher CIBIL score ensures that you have the negotiation authority with your lender leading to chances at gaining access to competitive home loan interest rates.
Considering that one follows up with this checklist before applying for a home loan, they can surely make the most of their availed advance. With access to such considerable financing options, purchasing properties is a convenient affair.