13 October 2011
No Salary Slips Can I Apply for a Home Loan?
When we go through the eligibility calculators and home loan applications we find that the most important document required is a salary slips for the past few months. For any lender to approve your home loan they will need that you prove your monthly income and incoming money to assure the lender about your repayment capacity. What if you are self employed or take contracts and do not have salary slips. How will you prove your monthly salary without your salary slips?
There are many lenders who cater to people who are self employed or take private or government contacts and do not have the required documents in place. Here it is a fact that the lenders do understand that you earn a good figure but they are tied by rules and cannot accept your home loan application. You can get your agreement papers about the contract and here your past contract papers and completed assignments can be of help. Even if you are new in a company the bank will require at least income proof of past three months or more. Your bank statements and bank accounts will be considered as proof.
In case you are employed in a small company or private company that gives you income in form of cash then you can request for a letter from your employer regarding the applying for as home loan. Your employer may give you a hand written slip which is not valid for application of home loan. Here consider your bank statements fro the past years and if they show a regular monthly incoming deposit then this can be considered as salary proof. If you have been on job regularly and have a good history of work then also this can be sued for your benefit to get your home loan approved.
Your qualification will also be of importance as the lenders will see how much you will be able to earn monthly and whether you w ill be able repay the EMI amounts. Go in for a realistic home purchase and apply for a realistic amount as loan, and it will get approved. And remember having no salary slips does not in any way hinder your loan application and approval and there are finance companies willing to offer loans for this category of people at the same low interest rate as others.