Are you searching to build your sweet home and looking for a home loan in Hyderabad? Hyderabad is a prospering metropolis, sitting in the heart of the Indian subcontinent and running a chunk of the nation’s economy. However, be rest assured you are not lonesome on your lookout and can comfortably find the best home loans per your needs.
While the city continues to embrace and accommodate lakhs of new people every year who come to the city with dreams and abundant opportunities, the financial corporations are doing their share of things to provide the best home loans in Hyderabad.
Documentation Process of Home Loans
A home loan is a mortgage loan in which the property is the collateral, resulting in a secured loan with lower interest rates and risk in terms of the lenders’ banks/institutions. However, as the property or the home purchased is involved in the home loan-taking process as collateral, it is necessary to provide several documents. The article offers a concise list of the same and would also help you to know the importance of those documents in the whole process.
Documents For Identity Proof
First and foremost is the identity proof of the person in the form of a Driving license, Aadhaar Card, Voter ID, and Passport. Lenders can ask for any or all of those documents for availing of home loans.
Documents for Income Proof
Then, for documents validating the income information, the following things are required.
(i) Salaried persons
For individuals in a salaried occupation seeking the best home loan rates in Hyderabad, the salary slips for the last three months and bank statements with salary credit over the previous six months are required. It is also necessary to submit either the Income tax return document or Form 16.
(ii) Self-employed persons
Self-employed individuals need to submit a document citing their business existence. They can do the same with GST Registration Certificate, trade license, or any other certification unique to their business. Also, the financial statements must be submitted, which need to be audited by a Chartered Accountant. In addition, it would include the balance sheet and profit-loss account statement, which can produce information on the source of income.
These documents are essential in getting the best home loan rates in Hyderabad or the rest of the country as the lending financial institution receives a fair amount of idea on the eligibility of returning the home loan. Therefore, it can result in lower interest rates.
Also, proof of residence is required, which can be identity documents and later electricity/water/property tax/water bill or ration card.
Documents related to propert
As the home loan is a secured loan involving property, the relevant property-related documents are of prime importance. Almost all the best home loan lenders in Hyderabad ask for the same documents.
The lending bank or financial institution may seek a Sale Deed or Share Certificate, an allotment letter, the approved building plan, and the certificate of non-encumbrance to ensure no mortgage or any claims are lingering on the property.
In addition to that, an advance payment receipt (in the case of the flat), a land tax repayment receipt, a certificate of no Objection Certificate from the builder or society; receipts for taxes paid for the Building and land, a possession certificate, and a certified sketch of the location of the property from the local revenue authorities is required.
The bank also takes into account the valuation of the property mentioned in a report, a report with detailed analysis on the estimation of finances for construction, a letter from the builder or housing society board with their bank details for instalment remittance, legal documents required for the handover of original property documents, the letter requesting handing over of Property documents from Legal Heir(s)/Nominee(s).
The document verification process would be tedious by looking at the number and types of documents involved, which it indeed is. In this facet, an app named Navi has been providing instant home loan approval within 5 minutes. As a result, they can cut down the lengthy process with a simple, streamlined digital process. This app is available on both Android and iOS platforms.
Eligibility criteria of Home Loans
The financial institutions ensure the safety of the money provided in loans by setting fair eligibility criteria, which filter out the people who may not be eligible to repay the home loan.
Almost all the banks and financial institutions providing home loans in Hyderabad or the rest of the country follow the same criteria for eligibility to provide loans. Though there can be slight nuances, while most have set the age range between 21 and 70, some institutions have reduced their minimum age requirement to 18 years.
Also, concerning the type of occupation, the net annual income has to be a minimum of Rs. 5 lakhs and either self-employed or employed in a firm.
Also, to filter out frauds from genuine ones, the person should either have a residence or a rented residence. In addition, the person must have resided in that place for at least a year before applying for home loans.
It is helpful to remember before applying for home loans in Hyderabad to maintain an excellent CIBIL score (credit information report from a recognized credit bureau) as it can help to reduce interest rates by magical amounts. Additionally, this can be a benefit as even 90% of the property value can be taken as a loan in case of excellent credit scores. In contrast, in general cases, 70%-80% of the property is available as a loan, and you need to pay the rest of the property’s finances from your pocket.
Lastly, one can go for the EMI Calculating services over the web that can predict home loans in Hyderabad eligibility. In addition, the tool calculates the maximum home loan amount eligibility by putting in interest rates, rate amount, and other mathematically essential details.