Home is a basic and primary necessity, aquiring a home is dream for many people. It is always difficult for an average earning individual to buy a home on own . Therefore the concept of home loan has come in trend. There are number of housing finance companies and banks that offer home loans these days. The process of selecting one company and a suitable offer for home loan among the thousands available options have become a very complicated task owing to the burgeoning housing finance market in the country. Apart from this, there are intricate business jargons and technicalities that make this task more difficult. Explore here the basics of home loan technicalities, so that when you apply for the home loan next time, you can understand the basics and help yourself remain away from the duping elements in the market.
When To Apply For Home Loans
One can apply anytime whether property has been decided or not. The loan amounts are sanctioned in principle to let buyers know what amounts they are eligible for. Actual disbursements starts after satisfactory validation of all necessary documents and completion of specific procedures.
Eligibility Conditions For A Home Loan
While determining the loan eligibility of a customer, lending institutions primarily focus on the repayment capacity. The repayment capacity is determined by taking into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, credit rating stability and continuity of occupation and savings history.
Documents Required At The Time Of Application
Following are the documents that lenders require at the pre-approval stage:
Proof of Age (PAN Card/Driving licence/Copy of marksheet)
Proof of Address (Utility Bill/Passport/Driving licence/ Adhar Card)
Proof of identity (PAN card/passport/Adhar Card)
Copy of Bank A/C statements for the last 6 months
Passport size photograph
For Salaried User :
Salary and TDS certificate
Latest pay slip
Letter from employer
For Self-Employed/Businessmen :
Copy of audited financial statements for the last 2 years
Copy of Registration Certificate of establishment under shops and Establishments Act/Factories Act