List of Documents You Need To Get Home Construction Loans

1. List of Documents You Need To Get Home Construction Loans House construction loan is taken by applicants who require financial assistance. It is related to mortgaging property for renovation or carrying out newer construction. The construction of a house is financed by home construction loans wherein the diverse expenditures related to it are taken care of. Through swift disbursement of funds coupled with flexibility in repayment tenure, it can be expanded from 5 to 30 years. Thus, lowering the monthly instalment burden on the borrower. A longer repayment process also ensures that the borrower does not default in payments since the loan is made to be affordable. However, there are multiple documents needed for securing a home construction loan. The same is as given below: Filled in Application Form for Home Loan The application form for a home loan has to be duly filled in with a declaration that the documents submitted are true in context. Photographic Identification The application must entail a passport size photograph of the borrower validating his photographic proof.

2. Identity & Age Proof The proof of identification must ensure the applicant submits any given documents confirming his identity & age. It includes a voter ID card, Driving License, or Passport. It is coupled with a birth certificate, school passing certificate, or bank passbook for confirming age. Proof of Residence One needs to provide proof of residence that includes submitting utility bills like telephone, electricity, water or gas, etc. Coupled with any of the identification proofs and a verified letter of recognition from a public authority. Income Documentation It includes different documentations for both salaried and self-employed individuals. Salaried applicants must furnish a certified letter of employment, payslips of past 3-6 months, any promotional letters, IT returns for the past three years, as well as form 16. One also needs to provide proofs related to investments in fixed deposits as well as shares. Self-employed individuals must share their IT returns for the past three years. It is coupled with the balance sheet showing profit & loss statements of their firm, license details for business or professional practice, and registration certificates. The registration certificate must confirm their establishment as well as be a substantial proof confirming the business address. Property documents The property documentation needs, first and foremost, a NOC from society as well as the builder. It is followed by detailed cost estimation for construction, registered deed, and stamped agreement of sale and allotment letter. Also, occupancy certifications, property tax receipts, maintenance reports, paid tax receipts, possession certificates, and building plan copy all are necessitated. A home loan for under-construction property or for renovating a property is the best bet when it comes to filling in the expenses related to getting your dream house done. The time taken for disbursal of loans varies for different financial institutions, given the multiple documentation provided as support goes through scrutiny and various checks. Loan approval is confirmed once verifying the documents are successful.