11 October 2010
Home Loan Application - Documents Required by the Self Employed During Processing
Loans can be taken by any individual as long as they are eligible and have the capacity to repay it. Procedures for taking loan are very lengthy and tiresome as we all have the impression of making many trips to the financial institutions till we finally achieve to get a home loan. The working category of people is lucky as they have many salary and job proofs on record and they can just produce these statements and avail the loan amount. The self employed are the ones who need to prove their identity and financial standing and usually many may not have all records of their statements. Private business people or professionals like doctors, lawyers, entrepreneurs who wish to apply loans may have to submit their assets and liabilities proof.
Let us list down few important documents required by the self employed class for application of a home loan.
Copy of audited financial statements for the last two years: These are very important as the audited documents show the financial standing of the individual applying for loan. It is very important to keep all the statements updated even if one is not wishing for taking a loan as whenever the need arises these documents are a boon and ease out the procedure for applying for a home loan.
Copy of partnership deed or company: These documents are proof of the ownership of company or as partner in the said company by the individual applying for the loan.
Profit and loss statements for the past few years: Here the lender can get an understanding of the financial position of the company or business. Profit and loss statements indicate how the business is running and the repayment capacity of the individual applying for a home loan.
Income tax assessment statement: Filing income tax returns regularly and having these statements on record is an important document required for the application of loan. This amount also indicates the financial standing of the individual as they declare their income and this proportionately corresponds to the amount of loan that can be applied for.
Total information about your total assets and liabilities: The total amount of property and other financial assets like gold ornaments and bank statements. Each institution has their own rules and may require specific proofs for these aspects. Owning a property or home which has a higher financial estimated value than the loan amount being applied for helps to get the amount easily.
Other personal and professional details together with property details and costs: Other details regarding liabilities are also discussed. Other earning members, number of family members, dependents and sick people in the family as well as record of other loans taken before or still repaying. Ownership details of shop or clinic is also considered as an asset.