For providing home loans, some banks may have different guidelines. However, by and large, most have some common requirements. Here is a step-by-step guide to avail home loan from banks.
Step 1: Documentation requirements
If you are employed:
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Verification of employment form
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Latest salary slip/salary certificate showing all deductions for at least the past six months
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Form 16 from your employer for the past three years.
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If your job is transferable, a permanent address needs to be provided.
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If you have been in your present employment / business or profession for less than a year, mention details of occupation for the previous five years, giving position held, reasons for change and period of the same.
If you are self-employed:
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Balance sheet and profit and loss account of the business/profession along with copies of individual income tax returns for the past three years as certified by a CA.
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A note giving information on the nature of the business/profession, year of establishment, present bankers, form of organisation, clients etc.
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Your net worth as an applicant/co-applicant.
Step 2:
Submission of property documents
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Title deeds of the builder/land owner for a period of at least 13 years.
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Development agreement between the builder and land owner if applicable.
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Power of Attorney executed in favour of the builder, if applicable.
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The khata certificate. (Basic document indicating ownership of property as entered in the register of the government authorities.)
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Up-to-date tax paid receipts of the property.
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A sanctioned plan and licence.
Step 3: At the bank
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An agreement for sale and a construction agreement with the borrower.
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A comprehensive legal scrutiny will be done
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Pre-sanction inspection of the property will be carried out.
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Credit appraisal and personal interview
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Following this, a sanction letter will be issued
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Acceptance of sanction letter.
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Administrative fee to be paid at this juncture.
Step 4: Final documentation for the loan
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Tri-partite agreement between the borrower, builder and HFC to be submitted
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Loan papers to be signed by the applicants
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Your guarantors should execute the guarantee agreements
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The original documents executed with the builder to be submitted
Step 5: Disbursement of the loan
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Inspection of the property will be carried out to ensure progress of work done.
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Following this, there will be a release of loan amount directly to the builder to coincide with the progress of work done as per the agreement with the builder
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No objection certificate from the builder to mortgage the property in favour of the HFC to be obtained.
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No objection certificate to be obtained from other Housing Finance Companies if the builder has availed a project loan, to release the mortgage right over the flat to be financed by the company you are securing a loan from.
Step 6: After release of the loan amount
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Receipt to be obtained from the builder for the amount released
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The sale deed, duly registered, must be obtained
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In addition to this, an up-to-date tax paid receipt would be sought