I recently met one of my friends who looked gloomy. He was excited two weeks before because he has decided to purchase a dream home with the help of a Home Loan. He had zeroed in on a property, made arrangements for the down payment and was looking to get approval from the lender.
However, his world of dreams crashed when he got to know that his Home Loan application request was rejected. Due to this, his preferred home in a prime location slipped from his hands he could not get a loan on time.
He asked one of the representatives of the lenders to know the reason for the rejection. On the condition of anonymity, he got to know that his documents required for Housing Loan was proper and it rejected the loan.
Yes, even if you have a good Credit Score along with a clean repayment history, your Housing Loan application may still get rejected. It may happen if the documents required for Home Loan are not in order or incomplete.
Thus, to help you get through a House Loan application procedure easily, let’s provide you some insights on Home Loan eligibility and documents checklist.
Are you Eligible for a Home Loan?
Before you get to the documents required for Home Loan, let’s know some handy Home Loan eligibility terms that will make your Home Loan application stronger.
Home Loan Eligibility at a Glance!
- You should be a citizen of the India
- Your age should be under 23-58 years
- You should be a working professional with the work profile of not less than 3 years
Use the Home Loan Eligibility Calculator to Help You Out
If you can’t decide your Home Loan eligibility by assessing the above standard terms which may vary as per a lender, you can use the Home Loan eligibility calculator.
It is an online tool that helps you know how much amount you can afford. The final loan amount gets decided by your age, total take-home salary and selected loan tenor.
The tool is available free of cost which you can use and determine your eligibility in advance. Making you aware of an amount that you can borrow helps you make advance preparation to make way for the Home Loan EMIs.
Some vital Documents Required for a Home Loan
Once you have passed the eligibility test, you need to furnish some documents required for Home Loan online to get closer to approval. Ensure to furnish the below documents if you are all set to apply for a Home Loan shortly:
- The duly filled application form
- KYC documents such as Aadhaar Card, Passport, Voter ID Card, or Driving
- Address proofs – Anyone out of Aadhaar Card, Passport, Voter ID Card, or Driving
- Identity proofs – Anyone out of PAN Card, Aadhaar Card, or Voter ID
- Recently clicked passport-sized/stamp-sized colour photographs
- Form 16 and latest Salary Slips
- Last 6 months’ bank account statements
You will need to provide business vintage/proof of business of at least 5 years if you are some entrepreneur/businessmen or self-employed personnel
You should note that the mentioned document checklist is a standard list. Some lenders may or may not ask for more documents if they want to scrutinize your candidature for a Home Loan. Thus, it would be better to ask your lenders for a final list.
The Bottom Line
Since you are now aware of the Home Loan eligibility and documents required for Housing Loans, you are not in a better position to prepare accordingly to apply for Home Loan. Anyone having a proper combination of a higher CIBIL Score, repayment history, matching the eligibility factors and keeping documents in order will surely get Home Loan approval at a lower rate.