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Applying For A Home Loan? Check The Steps And Documents Required


Purchasing a house marks an important milestone that many aim to achieve. It requires significant investment due to which people opt for home loans from banks and financial institutions. A home loan is a type of secured loan where you mortgage your property to the lender against the loan. Once the loan is completely repaid at the end of the tenure, the borrower gets complete ownership of the property.

If you are also seeking a home loan, then let us look at how to apply for it and the documents required in the process.

Below are the documents required for a home loan.

Identity proof (any one)

Aadhaar card

Voter ID

PAN card

Driving licence


Address proof (any one)

Electricity bill

Telephone bill

Water tax

Property tax receipt

Post-paid mobile bill

Property documents

Sales deed, allotment letter, or stamped agreement of sale

Detailed estimation of the construction cost of the property

Possession certificate and land tax receipt

Bank account statement or receipt stating the payment made to the builder or seller

Occupancy certificate (in case of constructed apartments)

Other documents required

Passport-sized photograph

For self-employed applicants – Proof of business existence, financial statements, and bank account statements for the last six months

Step-to-step guide to apply for a home loan.

Step – 1 Approach the bank from which you are seeking a home loan and fill up a home loan application form. You will have to furnish information such as your name, employment details, income details and proof, address, phone number, and education details. Proof of all the information mentioned above will be required.

Step – 2 After filling up the application form, you will have to pay a processing fee to the lender. It is charged for the verification of your details and investigation of your property’s value and its ownership by the bank. The fee varies from bank to bank and is usually in the form of percentage of the loan amount.

Step – 3 The bank takes a decision on whether to approve or reject your loan application in usually five working days. You may receive a call from the bank to discuss the loan.

Step – 4 The lender starts the document verification process to check your eligibility for the home loan. Officials from the bank may visit your residence and also contact your workplace or employer to verify the details furnished by you.

Step – 5 In addition, your CIBIL score and credit card report is taken into consideration. Once everything is found satisfactory, your loan application is moved forward, or else it is rejected.

Step – 6 If your home loan gets approved, the bank will send you a sanction letter stating details such as the loan amount, interest rate, type of interest (fixed or variable), loan tenure, and terms and conditions. If you accept the letter, you will have to sign and send a copy of it to the bank.

Step – 7 You may also be required to pay a one-time secure fee after signing the sanction letter.

Step – 8 The bank will proceed to do a legal and technical check of the property against which you are seeking the loan. It will send officials to the property to check for any dispute or conflict related to it.

Step – 9 Once the whole verification process is completed, you will have to sign a loan agreement following which the bank will disburse the home loan amount.

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