Buying a home is life’s greatest joy. But realising this dream and making it a reality are not easy. You have to follow certain procedures carefully. These are not difficult but they require your time and attention. A major component of buying a house is getting a good Home Loan. The housing loan process starts with submitting the required Home Loan documents to your lender. You also have to get the necessary checks done and pay the required fees. Once your loan approval comes through, you can buy the property of your choice. You can also avail Home Loan tax benefits. Read on to know more.
What are the Required Home Loan Documents?
Many a time, a perfectly eligible person does not get a Home Loan because his documents were incorrect. You can avoid being in such a situation. Make sure you have the following documents when you apply for a housing loan:
Employment proof (offer letter or certificate of employment)
Last six months’ salary slips
Last six months’ bank statements
Proof of income tax returns
Proof of educational qualification
Duly filled in application form
Original papers of the house (sale agreement)
Your Home Loan application will become much simpler if you have these documents in place.
How do I Submit the Home Loan Documents?
This is a common question that many prospective borrowers ask. A large number of Home Loan applications happen online these days. So, the document submission part carries a fair bit of confusion.
A few loan providers allow you to scan your documents and upload them online. But most lenders prefer a face-to-face interaction for this. You have to visit the lender’s branch in person to submit the documents. Since a Home Loan is a large financial transaction, it is better to hand the papers over in person. You also have to submit the original documents of the house. So, it is good be present during this stage.
What Happens After I Submit the Documents?
After you submit all the housing loan documents, the lender assesses your profile. If you are eligible for the loan, it is disbursed to you. The Home Loan interest rates and the EMI are finalising before the approval. Make sure you understand these repayment terms. Agree to the EMI structure only if you are sure you can afford it. Otherwise, speak to your lender. Ask for a change in the Home Loan EMIs to avoid any issues later on.
What are the Other Benefits I can Expect?
Apart from helping you own a house, your Home Loan can help you save tax. There are some useful Home Loan tax benefits. The principal and the interest you pay for the house loan are completely tax-deductible. So are the processing fees. Thus, you end up saving a lot of tax when you take a Home Loan.
Make photocopies of all the documents you submit. Also keep a list of the documents you submitted. That will act as a point of reference when you close the loan. At the time of closure, you will have to take back all the documents. Be careful not to miss any. Keep the list with you at all times.
Getting a housing loan is easy and the Home Loan tax benefits are an added advantage. So, get a little organised. Put together all the required Home Loan documents when you apply for the loan. Your loan processing will be smooth after that.