Applying for a Mortgage Loan? Go Through the Documents Checklist First!

Ravi wanted urgent funds for a medical emergency. Despite knowing that the lender might not approve the loan application if he didn’t fulfil the formalities, he went ahead and applied for a mortgage loan. However, as expected, his application was rejected due to incomplete documents, affecting his credit score. He had to reapply with a new set of application and documents.

If you avail a loan against property, you must do so with complete and updated documents. If you are planning to avail one anytime soon, here is a document checklist that you should be aware of.

What Is a Mortgage Loan?

A mortgage loan is an amount of money that you borrow from a financial institution by pledging a property with them. Also called, loan against property, mortgage loan can be availed against a commercial, residential or industrial property. Depending on your eligibility and property, you can get a loan of up to 50-70% of the property value.

Documents Required for Loan Against Property

For self-employed applicants

  • Application form
  • Pan Card
  • Identity proof, which can be a copy of Driving licence, Passport, Voter ID or Aadhaar card.
  • Address proof of both office and residence, which can be any one of these: Passport, Driving licence, Voter ID, Aadhaar card, bank statement, utility bills (water bill, electricity bill, etc.)
  • Proof of ownership (any one of agreement copy, electricity bill, Maintenance bill, municipal tax, etc.)
  • Business documents like tax registration, VAT, GST registration certificate.
  • Shop and establishment certificate, partnership deed, MOA of the company, details of directors, etc.
  • Income documents like the last three years audited profit and loss account and balance sheet, the last three years tax audited report and likewise documents for proprietorship and partnership firms.
  • Latest VAT, GST, service tax returns.
  • List of directors and shareholding.
  • Business accounts bank statements for last one year
  • Bank Passbook for last six month
  • Income tax returns for the last three years.
  • Property documents like property plan and title deed.

For salaried applicants

  • Application form
  • PAN card
  • Identity proof, which can be a Driving licence, Passport, Voter ID or Aadhar card.
  • Address proof of both office and residence, which can be any one of Passport, Driving licence, Voter ID, Aadhaar card, bank statement, utility bills (water bill, electricity bill, etc.)
  • Proof of ownership (any one of agreement copy, electricity bill, maintenance bill, municipal tax, etc.)
  • Relationship proof
  • Income documents, like the last three months’ salary slip and latest form 16, latest bank statement of the last six months, employment proof, if needed.
  • Property documents, like the complete chain of documents of the property, copy of the approved plan, title document of the property, etc.

To sum up

A property is a lucrative asset that can be useful anytime you need finances. If you have a property in your name, you can pledge it to fund your needs through a mortgage loan without selling off the property. While applying, you must be careful about the documents required for a mortgage loan to ensure quick approval. If needed, consult the lender’s representative in case of any difficulties in documentation, but ensure to submit the complete documents.