The application for the home loan is a very simple procedure. Most banks offer a home banking facility wherein the bank’s executive visits you at a convenient time, at your home or office. He liaises between you and the bank, also suggesting schemes, added benefits, interesting insurance policies and educating you on the best rate of interest. However certain homework is essential about the interest rate offered by other banks for a comparative analysis and also enquiring about hidden charges in processing fees and penal interest.

Here’s a ready reckoner for the list of documents to avail home loans.

FOR SALARIED APPLICANTS

• Photographs of recent nature. The number of photos specified by the bank.
• Identification with photographs in the form of Election Identity Card/ PAN card/ valid driving license/ valid passport.
• Form 16 with current employer. In case of change of job (in an assessment year) then it is necessary to submit Form 16 from both the employers.
• Exact proof of address is done with Passport/ telephone bill/ electricity bill/ agreement of house rent in case of rental residence.
• The salary slips of the past three or six months has to be submitted to the bank in original, which features the salary statement for the past six months.
• The initial cheque for the processing fee favoring the bank has to be submitted for processing the loan. [Read more]

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India has experienced a real estate boom in the last few years whereas the US had its share of a real estate boom but as of today their financial sector is in crisis. The share prices of real estate companies in India have fallen. There is a bearish sentiment in the Indian stock market, so does that mean the Indian financial sector too will face a similar crisis? [Read more]

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There are a number of factors that have a bearing on eligibility for a housing loan. The banks have their own criteria to determine the eligibility and quantum of housing loan. It would do well for borrower to be aware of some such factors.

To begin with, it is the information on the application form. The information submitted in the application form by the individual is verified from various primary and secondary sources - through interviews, calling up the employer, verifying from the database etc. In case of wrong information or inconsistencies, the loan application is liable to be rejected. [Read more]

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