Getting a housing loan is crucial for aspiring homeowners who need funds to cover their home purchase. However, as a home loan includes enormous funds, financial institutions accept applications only after verification. Hence, while applying for a home loan, ensure submitting all the required documents to avoid rejection. Besides, a rejected loan application also harms your credit score, and you will face difficulty seeking other loans in the future.
That is why it is essential to know which documents the lender requires to ensure instant loan approval. Here is a checklist of all the documents needed for availing of a PNB housing loan.
Documents Required for Housing Loan
Documentation is a crucial part of the home loan application process, as it is a way lenders gauge the customers in a better way. To get a home loan, an applicant must submit a few mandatory documents for most lenders. According to PNB housing finance comments, providing these documents helps the lender build trust in the applicant and lend without risk. Mentioned hereunder is a list of documents one must submit to get a home loan from PNB.
- Address Proof: With address proof, the lenders want to verify your identity and know where to contact if you default on the loan. The address proof can be your Aadhaar card, driving license, ration card, passport, voter ID card, telephone bill, or any other certificate from a statutory authority
- Age Proof: Age proof includes a passport, PAN card, or any other certificate from a statutory authority. A home loan involves long-term finance, and the borrower must be capable of repaying until the loan term is over.
- Income Proof: The lending institution can quickly determine an applicant’s monthly income by assessing their business and employment documents. These documents help ensure an applicant’s loan eligibility and repayment capacity on time. Financial institutions carefully examine the applicant’s economic history and income to assess their repayment capacity. That is why they ask for authentic records that show income stability. Furnishing these documents proves a regular monthly income to ensure loan eligibility.
- Income proof for salaried employees, including last three months’ salary slips, previous two years’ Form 16, last six months’ bank statement
- Income proof for self-employed professionals, including proof of business existence, last twelve months’ bank statement, previous three years’ ITR, and balance sheets certified by an accountant
Property-Related Documents
Most home loan lenders inspect the property before approving a loan application to buy it. In the event of a loan default, they can auction the property to recover their finances. The property-related documents that an applicant must submit while applying for a home loan differ according to the property type. These are as follows:
For Developer Property with the Developer’s Direct Allotment
- Builder-buyer agreement
- Payment receipt
- Allotment letter
- Permission to mortgage from a statutory authority
For Resale Property
- Agreement to sell
- Conveyance deed or sale deed in favour of the seller
- Property’s approved map
- All previous deeds from the property’s first allotment
- Land tax receipt or possession certificate from a relevant authority
- No Objection Certificate (NOC) from the society or builder
The loan applicant must provide a cost estimate with a complete breakup for an under-construction property.
Buying a house implies financial stability in addition to several sentimental values. A home loan makes the funds accessible to pay for the purchase and repay it in EMIs. Those looking for a PNB housing loan must furnish these documents to get easy approval in minimum time and become the proud owner of their dream house.
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