List of Documents Required for your Home Loan

To obtain a home loan easily, it is advisable to have all the necessary documents ready. These include age proof, income proof, address proof, and home documents. The list of documents for each category is mentioned above. Additionally, having a high Cibil score and adding a co-applicant can make the loan application process smoother.

There is no universal specification of a score. It differs from bank to bank what they consider to be a benchmark for getting a loan. However, aCibil score of 600 or below is generally considered low. It is often recommended to maintain a Cibil score of 700 or above to receive favourable terms.

Your eligibility for a home loan depends on various factors such as age, financial position, credit history, credit score, and other financial obligations. If you would like to determine the amount of loan you are eligible for, you can click here.

To obtain a home loan, income tax returns for the past three years are typically required. However, some banks may offer loans without income tax returns, but only if your income falls below the taxable limit of Rs. 2,50,000. However, this can complicate the application process and require additional documents.
Additionally, the bank may charge higher interest rates and your loan-to-value ratio may be low, which means you will need to pay a larger down payment. It is generally advisable to apply for a loan with income tax returns to ensure favourable terms and an easier process.

After closing a loan, it is important to obtain a "no dues certificate" from the bank. Additionally, collect important documents like sales deed, title deed, loan agreement, and power of attorney that were submitted during the loan application process.

After the bank approves the loan, you will need to sign a loan agreement. This agreement specifies the loan terms, such as the amount, interest rate, and time period. Once the agreement is signed, the loan is disbursed either to the borrower's account or directly to the seller's account.

Yes, even after approval, Bank can reject your home loan application due to reasons such as discrepancies found in submitted documents, sudden drop in CIBIL score, change in borrower's financial situation (e.g., job loss), and legal disputes related to the property.

Adding a co applicant to your home loan comes with a few terms and conditions. According to banks, there are only a few relations that can be applicants on the home loan. Eligible combinations include husband and wife, father and son, father and unmarried daughter, mother and son, mother and unmarried daughter, brother and brother. Anybody outside of these combinations aren’t eligible to be co applicants. 2 sisters or married daughters and parents cannot be co applicants. Banks also don’t allow friends, partners, other family members, colleagues, etc. to be co applicants. Adding someone as a co applicant should only be done after careful consideration, though. As their credit score, income data, financial habits, ownership in the property, etc. are also going to affect the interest rate as well as whether your loan application is accepted or not.