It is much easier to apply for a home loan now than it was some years ago. It is possible to apply for a home loan online, without visiting the bank branch or spending time talking to a representative. You can sit in the comfort of your home, at a time convenient to you and fill out the application online and upload the required documents.

It is important to note that each bank/financial institution will have its own set of documents required. It is best to check the concerned lender’s requirements as there might be differences between banks on the kinds of documents to be submitted at the time of application. However, it is safe to say that all lenders (banks and other financial institutions) require proof of identity, address and income of the applicant.

If you are an existing customer, you might enjoy reduced documentation.

There will also be differences in documents required in terms of income proof depending on whether you are a salaried employee, a self-employed professional, or a self-employed non-professional.   

In general, below are the documents that most lenders ask from applicants who apply for a home loan:

Duly signed application form with photograph/s

Identity Proof for all applicants. Valid documents include:

a. Driver’s License

b. Passport

c. PAN card

d. Voter ID

Address proof for all applicants. Valid documents include:

a. Voter ID

b. Passport

c. Recent telephone, electricity, gas bills.

d. Property tax receipt

Income proof. Lenders might require all of the documents below:

a. Bank Statement of the past 6 months

b. Salary slips of the past 3 months

c. Form 16/ Income Tax returns

In addition, self-employed professionals and non-professionals might need to provide additional qualifications including education certificate, IT returns of the past 3 years, and CA-certified balance sheet of their business for the past 3 years. You may also need to pay a processing fee when applying.

Once the loan is sanctioned, you might need to provide further legal documents including a Power of Attorney for collecting the original property documents. You might also have to submit additional documentation regarding the property to be purchased.

There is certain other documentation to keep in mind for later. While it is not a credit issue at the time of application, it is good to have a clean title deed and ensure all other legal approvals when choosing a property. This makes the loan process smoother.