Document Checklist When Buying a House:

Home-buying process in India is far from being simple. Right from finding the right house, to financing it and finally buying it is a long and tedious process. Adding to a buyer’s woes is the elaborate paperwork involved in the process. The very thought of collating all the necessary documents can assume gigantic proportions and deter a potential buyer from moving ahead. However, with the right information and preparation, you can make a checklist of all the necessary documents. Not only will it rid you of the unnecessary anxiety, but it’ll also make the whole process of buying a house smoothly.

To give you an idea, here is a summary of the documents that you will need when buying a house:

When applying for Home Loan:

Personal Documents:

When you apply for a home loan, the bank will need a set of personal documents. So it is a good idea to keep your age proof, residence proof, photo identity proof and signature proof documents ready. These documents are to be submitted to the lending bank in adherence with the Know Your Customer (KYC) rules.

Financial Documents:

You need to submit certain financial documents when applying for a home loan, so the bank can evaluate your repayment capacity. Some of the important financial documents required by most banks and financial institutions are payslip of the last three months, your current employers offer letter with CTC details, Form 16 and Income Tax Returns Certificate of the last two years.

Documents to be Submitted by Self-Employed Persons:

The list of documents required to be submitted by self-employed and non-salaried persons is a little comprehensive, owing to the nature of their income. The list of documents required to be submitted by self-employed borrowers can cover:

1) Business profile document
2) Audit records of your firm for the last three years
3) IT Returns document for the last three years
4) Income received from other sources

The financial institution will review all the above documents and statements to evaluate the borrower’s loan worthiness.

Documents Needed for Registration:

The standard set of documents required at the time of property registration are identity proof, address proof and the sale deed of the said property.

Besides preparing the documents list from your end, keep an eye out for the documents required from the seller’s side, too. It would be wise to get all the seller’s documents cross-checked and verified by a lawyer specializing in property dealings.