Which are the things that the lenders verify before approving Home Loan application?

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  1. Anamika Verma

    Anamika Verma New Member

    Explain the required things for applying for a home loan.
     
  2. Anuj Pandey

    Anuj Pandey New Member

    The most basic things Indian banks verify before approving a Home Loan for any individual are as follows:

    1)Credit Score of an Applicant- This is basically a parameter that gives the lender an idea of how trustworthy an applicant is from a financial perspective.

    2)Age of the Applicant- Lenders do not grant loans to too young or too old individuals as it might affect loan repayment, considering the fact that such people might not have a steady source of income.

    3)Income and its Source- Banks will scrutinize how much you earn and how you earn. The status of your employer(s) too plays a role here as it is the source of your income. Your income (along with your credit score) eventually decides the Home Loan amount you will be eligible for and the rate of interest and tenure for your case.

    4)Documentation- Banks will verify the documents that are required as part of the Home Loan application. These necessary documents for Home Loan include a valid ID and address proof, PAN card, property documents, and employer ID card among other things.

    5)Property- Before approving a Home Loan application, banks will also do a check on the property you wish to buy.

    In case of Home Loans, NBFCs are known to be more flexible than banks.
     
  3. John Davis

    John Davis New Member

    Document Needed for Salaried
    Proof of identity Valid passport/Voter’s ID/Valid Driving license with photo graph /Pan card /Aadhar card
    Proof of Income Latest 3 months salary slip / certificate for fixed salary/Latest Form 16
    -and-
    Last 6 months bank statement/Passbook of the salary account

    Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.

    Document Needed for Self Employed

    Proof of identity Valid passport/Voter’s ID/Valid Driving license with photo graph /Pan card /Aadhar card

    IT- returns for the last 2 years along with computation of income certified by CA
    and Last 6 months Bank statement for operative account both personal and business.

    Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.
     
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