Bangalore Real Estate Trends

Some documents you need to submit while applying for a home loan

While applying for a home loan, you need to keep in mind some general conditions pertaining to determination of eligibility and the documentation requirements, in order to expedite the loan process.

The specific requirements may vary between different banks, depending on the purpose of the loan, amount required, tenure etc.

Home loans are available to:

• Individuals - both salaried and self-employed
• Sole proprietorships
• Partnerships
• Limited companies

The loan amount depends on these factors:

Applicant

It depends on who the applicant is - individual or firm.

Value of property

Banks finance 60 to 85 percent of the agreement's value of the property. If you are purchasing a flat for Rs 40 lakhs but the agreement value is only Rs 25 lakhs, you will get finance up to a maximum of Rs 15.30 lakhs (85 percent of Rs 25 lakhs). The difference between the agreement value and the value you pay may be on account of legal charges, stamp duty, valuation etc.

Age of applicant

The minimum stipulated age of a borrower is 22-25 years and the maximum age varies between 58-65 years. The maximum age is the age at the expiry of the loan. If your age is 45 years and the maximum age fixed by the bank is 60 years, you can get a loan for a tenure of 15 years only.

Income

The income determines the repaying capability of an applicant. If the income is lower than the required income to service the instalments, a co-applicant can be added. The income considered in such a case will be of both parties - the applicant and co-applicant.

Purpose of loan

The purpose of the loan may be to buy a plot, property, under-construction property, renovation of property, or building a home. Once a property has been identified, you can approach a bank with a loan application.

These documents need to be submitted by all home loan applicants:

• Application form filled in
• Processing fee (may be fixed or a percentage of the loan amount)
• Photographs of the applicant and co-applicant
• Income proofs

In case of a salaried individual:

Employment form issued by employer Copies of pay slips of the last few months Latest Form 16 issued by employer Bank statements Identity and address proofs.

In case of a self-employed individual:

A brief note on the nature of business, year of establishment, present bankers, form of organisation and the capacity in which the applicant is engaged Statement of total income, income tax assessment orders, and returns for the last few years Balance sheet and profit and loss account for the last few years Copy of partnership deed if it is a partnership firm, or copy of memorandum of association and articles of association if it is a company

Other documents that may be required:

Net worth statement of applicant and coapplicant Copies of LIC policies Particulars of family members in the prescribed format - name, age, relationship, occupation, income Particulars of guarantor in the prescribed format with proof of income

These documents need to be submitted in respect of property to be purchased:

Original agreement with the developer Certified true copy of approved plan Copies of receipts of payments made to developer Certified copies of all documents pertaining to the property

_{Source: TimesProperty  Dt: 22-4-2011}