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Why are income tax returns important before applying for a home loan

Income tax returns are important before applying for a home loan because they provide documentation of a borrower's income, which is one of the most important factors that lenders consider when evaluating a loan application.

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Why are income tax returns important before applying for a home loan

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  1. Why are income tax returns important before applying for a home loan? Income Tax Returns (ITR) provide lenders with information about your earnings and repayment potential. It assists them in determining the risk of lending to your profile. Typically, the most recent 2-3 years of ITR are required. List of most crucial ITR forms ITR 1 Applicable for individuals with income below Rs 50 lakh. ITR 2 Applicable for individuals with income above Rs 50 lakh. ITR 3 Applicable for HUFs or individuals earning from business with turnover over Rs 2 crore. ITR 4 Applicable for individuals having income in accordance with Form 1 and earnings from other sources exceeding Rs 50 lakh. ITR 5 Applicable to firms, bodies, associations, and LLPs. ITR 6 Applicable to those who have not raised exemption under section 11. Significance of ITR filing Substantial amount You can qualify for higher funding and can upgrade to a better home. Improves eligibility ITR increases your eligibility for a home loan, and you may be approved on more favourable terms. Mandatory You may be asked to provide documentation stating your net worth, and ITR can assist you with this. Auditing If you are self-employed and your finances require an audit, ITR filing becomes mandatory.

  2. Is it possible to obtain a home loan without an ITR? Although ITR is required, various financial institutions approve this loan based on a variety of other factors. About Company: Company Name: Hero Housing Finance Ltd. Address:9, Community Centre, Basant Lok, Vasant Vihar, New Delhi, Delhi, 110057 Contact No: 1800-212-8800 Email Id for Enquiry: customer.care@herohfl.com Website: https://www.herohousingfinance.com/

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