Buying a house is usually a complex process, involving loads of documentation, time and money. Since purchasing a property requires a huge sum of money, most individuals apply for a home loan from banks or other financial institutions.
However, home loans are different compared to other forms of borrowing, mainly because the amount involved is much higher than personal, auto and education loans.
When applying for a home loan, there are several aspects that borrowers need to assess. From document submission to calculating the equated monthly instalment (EMIs) and tax benefits, monitoring each aspect is equally important.
Therefore, individuals applying for a home loan need to come up with a holistic plan before they apply for a home loan. Having said that, here are five tips to make your task easier:
Keep your documents ready
There are a set of basic documents that are mandatory for a home loan application. These documents may not be required when an individual applies for a small-ticket loan, but are necessary in the case of home loans.
For starters, individuals will need a copy of their PAN, Aadhar card and proof of current address. A passport-sized photograph of the applicant is required as well.
Borrowers also have to submit proof of income. Banks may ask you for salary proof for the last three to six months. You could either provide a salary slip, salary certificate and bank statement (6 months).