13 October 2010
Documents required during the application and processing of home loans for the salaried class
When we think about taking a home loan the impression of making many rounds of the lending institution or bank is the picture created in our minds. We repel with the idea of convincing the authorities of our financial status and the capacity for repayment. But this is not always so. If we can get prior information regarding the documents and procedure required for taking a home loan it would ease out many difficulties and also make the process of purchasing a home a more pleasant one.
The salaried class are the ones which can get loans easily as they have their salary slips and work experience records that can help to show their financial standing in the society. Assurance of the required amount as salary is a important assurance for the financial institutions or private lenders to approve of the loan amount applied for. People working for a company or government and getting regular monthly salary can be termed as salaried class. Preparing before hand about the documents required for home loans helps the buyer to be prepared with the documents and also knowing the procedure helps to be prepared and enjoy the blessing of purchasing a home. A list of important documents required for the application of a home loan by the salaried class is given below in simple terms.
Age proof: The ration card or Pan Card Xerox can be used for age proof of the individual or borrower.
Address proof: Telephone bills or electricity bill Xerox can be used as proof of residence.
Income Proof of the applicant: Salary slips Xerox can be used of previous few months as income proof.
Last six months bank account statements: Bank statements allow the lender to know the financial standing of the borrower.
Passport sized photographs of the applicant and the co-applicant: Recent photographs of the individual to prove the identity of the borrower.
These are simple list of documents and they may be slightly different for different institutions. During processing one may require to share total assets for proving their repayment capacity. Some institutions also require document proof of at least two individuals who have a good financial standing in the society. These are reference parties who can be contacted in case of default or not being able to pay the installments on time.