Documents Required for a Home Loan: Personal, Income, and Property Documents

Disclaimer: This article is for general information/education and is not investment advice. The information is shared in good faith and for general informational purposes only. Ujjivan SFB does not make any representations or warranties regarding the accuracy, completeness, or reliability of the content.

September 26, 2024

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While applying for a home loan, you need to keep the documents ready. Though documents required may vary from bank to bank, there are certain documents that are required to furnish across lenders.

What are the Home Loan Documents Required?

These are the documents generally required from every home loan applicant, irrespective of whether you are a salaried employee, self-employed individual, or an NRI.

Identity Proof / Address Proof such as Aadhaar Card, Passport, Voter ID, or Driving Licence
PAN Card or Form 97 (earlier Form 60), where applicable
Recent passport-size photographs
Bank statements for the last six months to one year, as required by the lender
Additional documents may be required depending on your applicant profile and the type of property you are purchasing.

Which Home Loan Income Documents are Required for Salaried and Self-Employed Applicants?

Since salaried and self-employed applicants have different sources of income, the documents required also vary.

1. Home Loan Documents for Salaried Applicants

In addition to the common documents, the following income-related documents are required for a home loan application. Lenders assess your repayment capacity based on these documents.

Salary slips
Form 130 (earlier Form 16) for salary TDS, if applicable
Form 131 (earlier Form 16A) for TDS on additional income, if applicable
Income Tax Returns (ITRs), if applicable
Salary account statements
Employment or appointment letter (if required)

2. Home Loan Documents for Self-Employed Applicants

Self-employed applicants are generally required to submit:

Income Tax Returns (ITRs) of previous tax years
Profit and Loss Statement
Balance Sheet
GST returns, if applicable
Business registration certificate or licence
Tax Audit Report, if applicable
Partnership deed or proof of business ownership, if applicable
Business address proof, if required

What Property Documents are Required for a Home Loan?

The property documents required may vary depending on the type of property you are purchasing. Since the property acts as collateral for the home loan, lenders carry out thorough verification of these documents before approving the loan.

The property documents required for a home loan may include:

Sale Agreement: Shows the agreed purchase price and other terms of the property purchase
Registered Sale Deed (for completed properties): Confirms the legal transfer of property ownership.
Title Documents (where applicable): Help check the ownership history of the property.
Approved Building Plan: Confirms that the construction has been approved by the competent authority.
Occupancy Certificate (for ready-to-move properties): Confirms that the property is ready for occupation.
Completion Certificate (where applicable): Confirms that the construction has been completed.
Property Tax Receipts: Help verify that property taxes have been paid.
Encumbrance Certificate (if required): Shows if there are any pending legal or financial claims on the property.
Allotment Letter (for under-construction properties): Provides written confirmation of the property's allotment by the builder.
RERA Registration Details (for under-construction projects, where applicable): Help verify the project's registration and authenticity.
NOC from the builder/society (if applicable): Confirms that there is no objection to the sale or financing of the property.
Payment receipts for the token amount, advance payment, or down payment made to the seller or builder: Serve as proof of the payments made towards the property purchase.

Additional Home Loan Documents for Specific Cases

The documents required may change depending on how you are purchasing the property or applying for the loan. While the complete list varies from case to case, the most common additional documents include:

Existing loan statement and foreclosure letter (for balance transfer) to verify outstanding loan details and the amount to be transferred.
Power of Attorney (if applicable): Required if you are applying or completing the property transaction on behalf of someone else.
Gift Deed or Succession Documents (if applicable): Required if the property was received as a gift or through inheritance instead of being purchased.
Guarantor documents (if applicable)

Should You Submit Original Documents or Photocopies For Home Loan?

Depending on the type of document, you may need to submit either photocopies or the original documents. Most original personal documents are returned after verification, while original property documents are retained by the lender until the home loan is fully repaid.

Note: Document submission and retention requirements may vary from one lender to another. Please confirm them with your lender beforehand.

What Documents Are Required for Co-Applicant and Guarantor For Home Loan?

A co-applicant may be asked to submit documents similar to those required from the primary applicant, especially if they are also a co-borrower.

In the case of a guarantor, identity proof, address proof, and income or financial documents may be required to know their capability to repay the loan if the primary borrower defaults.

When Can Home Loan Application Be Delayed or Rejected Due to Documents?

Your home loan application may be delayed or even rejected if the required documents are incomplete, incorrect, or inconsistent. Here are some common documentation-related reasons:

Your name or other personal details do not match across documents, such as name mismatch in aadhar and PAN
Identity or address proof has expired
Income or property documents are incomplete or missing
Photocopies or scanned copies are unclear or illegible
Property documents contain missing information or unresolved legal issues
Required signatures are missing on the application or supporting documents
The lender requests additional documents that are not submitted on time

What are Self-Attested and Notarised Documents for a Home Loan?

Self-attestation means signing the document photocopy yourself to confirm it is a true copy of the original document and that you have the original document, which can be presented if requested. A notarised document, on the other hand, is verified and certified by a Notary Public.

Most home loan applications only require self-attested documents. Notarised documents are generally required only in specific situations, such as when a Power of Attorney (PoA) holder is applying on behalf of the applicant, the applicant is residing overseas, or the lender specifically requests them.

Final Thoughts

The document list may vary depending on the lender, and there is no standard list of documents that applies to every home loan. Always confirm the final requirements with your lender before applying. Knowing the complete list of required documents helps you identify which documents are already available and which ones need to be arranged. This makes it easier to organise and present a complete and well-prepared home loan application.

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FAQs

It depends on which document is missing. If it is an additional document, the lender may allow you to begin the home loan application and ask you to submit it later. However, if an essential document, such as salary slips, Sale Deed, or another mandatory document, is missing, your home loan application is unlikely to proceed until it is submitted.

Many lenders accept scanned or digital copies during the initial stages of the home loan application. However, you may still be asked to produce the original documents for verification before the loan is processed.

Yes. Any change in your personal information, such as your address, name, contact details, or other important details, should be updated as soon as possible. Otherwise, it may affect communication from the lender, important letters or other postal correspondence may be sent to the wrong address, and your home loan application or even the loan after disbursement may face unnecessary delays.

Banks generally return your original personal documents after verification. However, the original property documents submitted as collateral for the home loan are usually retained by the lender until the loan is fully repaid. Once all loan dues and formalities are completed, these original property documents are generally returned to the borrower.