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December 1, 2021
Finance

Home Loan Sanctioned? Keep These Property Documents Handy!

A home loan helps in taking care of all the housing expenses. Now, since home loans are verified loans, any financial institution will require all the property documents in order to offer such loans. Usually, the documents that lenders require for processing your loan application are income documents, KYC documents, documents related to a home loan balance transfer, property documents, and so on. Of course, the documents that are required and eligibility criteria could differ from lender to lender, so it is best to check with the financial institution about their requirements.

Here are general documents that lenders require once the home loan is sanctioned:

In case of a property which is under construction:

  • Original receipts of the down payments made to the builder
  • A self-attested copy of the loan agreement document
  • Original document of the construction agreement
  • No Objection Certificate from the builder
  • Original document of the agreement for sale

Properties for which the construction is completed:

  • Original payment receipts from the builder
  • Original document of the sale deed
  • ECS/PDCs mandates

Please note that if the property is under construction, it is possible to get a home loan without the property registration documents. Once you receive possession, the property will have to be registered, post which you will have to get a completion certificate. In fact, if a borrower has a good rapport maintained with the lender, they can even get a home loan sanctioned without having to provide any documents. It is possible to get a digital sanction letter and can only provide documents at the time of the lender’s verification process. However, this could differ from lender to lender, so it is best to check with your lender regarding their process.

After the loan application has been processed, the financial institution will make you a loan offer. This might slightly differ from your loan request as the lender takes into account the monthly income, credit score, existing EMIs, age, and other factors. Also, the property’s current value will be taken into account by the financial institution. A sanction letter will be provided by the lender, which will include details regarding the home loan such as the interest rate of the loan, the total amount that is going to be sanctioned, total tenure in which the loan will be repaid, and whether the rate is floating or fixed. Make sure to carefully read the sanction letter in order to be thorough with all the terms and conditions of the loan plan.

Once you have received the loan details, you can then decide whether to accept the terms by the lender or keep searching for better home loan options. This is because a sanction letter does not signify the final loan agreement. After receiving and accepting the letter, the next step will be providing all the above-mentioned documents required for home loan. Usually, this letter is valid for 6 months, so take your time and make a sound decision on whether to opt for the loan plan.

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