What Are The Documents Required For Mortgage Loan ?

A mortgage loan helps you buy a home of choice. Technically, the ownership right of the home or the real estate you buy stays with the lender until you fully repay the loan. However, you can use your property without any problem as long as you pay the EMI for your mortgage loan.

To get a mortgage loan approved, you need to ensure that you fulfill the eligibility criteria and have all the necessary documents ready.

When you apply for a mortgage loan, you will find the loan tenure is longer than, for example, a personal loan.

Mortgage loan eligibility check-list

The mortgage loan eligibility criteria will also vary from bank to bank, but other things being the same, you will have to submit certain documents required to source the loan, get the approval for the loan from very meticulous bankers. Check all details before you get down to applying for the loan against property, including ensuring you obtain an encumbrance certificate. Do not forget to check it out using the mortgage loan eligibility calculator.

Here’s a checklist of documents required to get a mortgage loan. There will be a few variations in the list of documents needed for the salaried and the self-employed.

For salaried applicants

1. ID proof: This is perhaps the most important document. The applicants have a number of options. The one basic requirement is that the id proof should be a photo-id. Like a PAN card and a passport. The driving license is also photo-id proof. Ditto voter’s id, employee id, bank passbook, and ration card.

2. Address proof: Passport; utility bill such as telephone, electricity, water, gas. They should be less than 2 months old. A third address proof is a letter from an authorized public authority that attests to the borrower’s residence address. Other than these, bank passbook or bank account statements are also address proof including voter ID, ration card and LIC policy/receipt that you can submit with the application when you apply for the mortgage loan.

3. Residence ownership proof: Important because it is a loan against property and the property offered as collateral is a residence or home. Therefore, residence ownership proof is a must. The proof could be anyone of the following documents—property documents; utility bills like maintenance bill or electricity bill.

4. Proof of income: Payslip of the last two months; increment or promotion letter; IT returns of last 3 years; copy of form 16 or certified letter from employer.

5. Proof of job continuity: Current job appointment letter; current employment certificate; experience certificate; bank statement of last six months/bank statements of salary account. It's also important to consider any ECS (Electronic Clearing Service) transactions in ECS banking. Don’t forget to check with the use of a mortgage loan eligibility calculator.

6. Existing loans: If the borrower has an existing loan, he’ll have to provide the loan sanction letter and payment track record when applying for the mortgage loan

7. Investment proof: Fixed deposit documentary proof, fixed assets, shares, etc.

8. Xerox of property documents

9. Advance processing cheque

For self-employed

Some of the documents needed for a mortgage loan are the same for self-employed as for salaried people. These documents are as follows:

1. Proof of Identification

2. Address Proof

3. Passport size color photograph

4. Investment proof

5. Existing loans proof

6. Professional Degree Certificate

However, some special documents will be needed for self-employed people looking for a mortgage loan. Here are these documents:

1. Residence ownership proof: Property documents; electricity bill or maintenance bill

2. Office address and ownership proof: Property documents, electricity bill, maintenance bill

3. Proof of business existence: Sales deed; Saral copy; copy of tax registration or company registration license

4. Proof of Income: Income tax returns of Last 3 years; audited balance sheet.

5. Bank statement: Check with the mortgage loan eligibility calculator.

6. Copies of all property documents: Sale deed/copy of Agreement, share certificate (if society formed), maintenance bill have to be presented when applying for the mortgage loan.

7. Advance processing cheque: to process loan documents for sanction

In conclusion

As has been spelled out, the self-employed and individual businessmen have to provide more eligibility documentary proof than the salaried employed in the private and government sectors for a mortgage loan. To apply for the mortgage loan, you should prepare or keep ready all the necessary documents.

You can use a mortgage loan eligibility criteria to check if you can get the loan and how much. All said and done, the loan against property covers itself eminently well because it is a secured loan with a very sound collateral in the form of the residential property (home) owned by the borrower.