Every debt instrument involves a financial transaction which is based on several factors such as the documents required for Home Loan, eligibility criteria, financial standing of the applicant, and the trust on the individual that he/she will repay the loan on or before the due date and in full. The formalities involved prior to receiving approval on a Home Loan application- such as assessment of the profile of the applicant against the eligibility criteria of the lending institution, followed by the verification of certain documents help in establishing this trust.
The documentation requirements of a Home Loan include details of the employment, finances, and age of the applicant or applicants in case of joint Home Loans.
With a Home Loan, there are certain charges that make up the cost of borrowing for the loan. These include the rate of interest, processing fees, penal and secure fees, among other things. These fees and charges add up to the overall cost of borrowing for the loan.
The common list of documents include the following, over and above the duly filled application form with the passport sized photos of the applicant:
Proof of Income- These are the salary slips and the bank account statement of the past 6 months
Proof of Address- Utility bills, aadhar card, passport, voter’s ID card or driving license.
Proof of Identity- This could be the passport, aadhar card, PAN card, voter’s ID card, or driving license.
By taking a comprehensive look at the documentation requirements of the chosen lending institution and their cost of borrowing, the right loan scheme can be chosen.
The reference given below will help in understanding the additional charges that add up to the cost of borrowing:
Most Common Documents Required and Fees related to a Home Loan
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.