2 min read
25 May 2021

Applying for a home loan consists of various steps and documents that you need to gather and submit. Take a look at the steps you can take to fast track your home loan application.

Build your credit history

Your credit history and credit score play an important factor in helping the lender decide whether you’re a worthy candidate or not. If you have no credit history, your credit score will be low. To remedy this and build your credit history, it is advisable to take a small loan and pay it off. This will set you up for success when you want to apply for a home loan. You’ll have a stronger credit score and good credit history to boot. This will expedite your application, as the lender will have more confidence in your repayment abilities. If, on the other hand, you have a credit history and low score, take the effort to improve it. You can pay off credit card debt, refrain from applying for any loans for 6 months and reducing the use of your credit card.

Additional Read: How credit score can determine your home loan EMIs

Pay off existing liabilities

Existing liabilities show that you are already financially burdened. This may be perceived as an inability to take on another loan. So, clear all your existing debts before filing your home loan application.

Meet the eligibility criteria

Every home loan lender has set eligibility criteria that you must meet. Only when you prove your eligibility will your application move on to the next step. But, if you falter here, the application process comes to a grinding halt. Here’s a look at all the criteria that you need to match.

  • Type of Employment: Housing loan eligibility and approval vary depending on whether you are a salaried individual, self-employed, or part of a company/firm. For a salaried individual, your monthly income is taken into consideration. If you are self-employed or part of a firm, you should have been in the business for a minimum of 5 years

Additional Read: All You Need To Know About Top Up Loans On Home Loans

  • Age: You should be between the ages of 23 and 70 to avail a home loan. Note that the number of earning years you have left defines your repayment capacity
  • Type and Age of property: Bajaj Finserv will investigate into whether the property is already built, or under construction. Properties that are more than 15 years old or properties auctioned by banks may delay your loan sanction

With some financial institutions, you can avail loans starting from Rs.30 lakh all the way to a maximum of Rs.5 crore.

Ready the documents required for a home loan for a quicker approval

There are certain standard documents that are required for a home loan. Ensuring that you have the right documents that have been arranged chronologically, stamped and signed ensures that your application is approved in one go. If you haven’t submitted all documents or have missed out on a signature, the whole lot will be sent back to you. This will delay the process significantly.

Additional Read: 5 Easy Tips to Get Your Home Loan Approved Instantly

If you are a salaried individual:

  1. Payslip of the last 3 months
  2. Bank statement of your salary account for the last 6 months
  3. IT returns/Form 16 (last 2 years)
  4. Valid address proof
  5. Valid ID proof such as passport or PAN card
  6. Information on insurance, mutual funds and other savings

If you are self-employed or a business owner:

  1. Income tax returns for the last 3 years
  2. Bank account statement for the last 6 months
  3. Balance sheet of your business
  4. Memorandum of Agreement in case of a company
  5. IT returns/Form 16 (last 2 or 3 years)
  6. Proof of continuity for 5 years
  7. Valid address proof
  8. Valid ID of individuals who have an ownership stake in the company
  9. Information on insurance, mutual funds and other savings

For an under-construction property:

  1. Development plan of the property
  2. No Objection Certificate (NOC) from the developer
  3. The agreement between you and the developer
  4. Mother deed of the plot

For a resale property:

  1. Registration of the property by the seller
  2. No Objection Certificate (NOC) from the bank (if there is a current loan taken by the seller that isn’t closed yet)
  3. Mutation certificate from the municipality. Mutation of a property is a change or transfer of title entry in local municipal records.
  4. Sale deed, conversion premium, or power of attorney to convert the leasehold property to a freehold property

Following these steps will ensure that you get your home loan quickly, without any hassle.

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