Buying a house? Here's a documents checklist
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By Admin
2 Minutes
16th February 2022
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Buying a home is one of the most important decisions a person will make in their life. Each of us wants to make sure that no stone is left unturned when it comes to picking the perfect house for our loved ones.
However, the home-buying process is complex, and skipping even one step can cost a homebuyer financially in the long run.
Mumbai is primarily recognized as a business and residential real estate powerhouse. Finding a home that meets your needs, on the other hand, is a challenging endeavour. Before you decide on a property, we advise you to be thoroughly familiar with the documentation involved in the purchase process.
Buying our own home is one of the essential parts of life. Most home-buyers tend to take a home loan for their first home buy. You need to present your ITR, Bank Account Statements, and salary slip to prove your home loan eligibility to apply for the same. Another factor that the bank will verify to sanction your loan is your CIBIL score. The authorities will create a Credit Information Report and send it to CIBIL. The ideal score should be 700 to 750.
The following are a few of the papers you will need to produce when purchasing a home:
1. Loan: It is essential to know that up to 80-90% of the cost of the house will be given as a home loan. The rest of the amount, i.e., the down payment, needs to be arranged by you. Here's the list of 15 must-have documents when applying for a home loan:
- Loan application form.
- Three photographs passport-sized.
- Identify proof
- Residence proof
- Bank Account Statement/Passbook for last six months.
- Signature verification by bankers of the applicant.
- Liabilities statement and Personal Assets.
- Property detailed documents
- Salary Certificate (original) from the employer. (Salaried individuals)
- Form 16/IT Returns for the past two financial years. (Salaried individuals)
- IT Returns/Assessment Orders copies of the last three years. (Self–employed professionals)
- Challans Proof of Advance Income Tax payment. (Self–employed professionals Proof of business address for non-salaried individuals. (Self–employed professionals)
- T returns/Assessment Orders copies of the last three years. (Self – Employed Businessmen)
- Challans Proof of Advance Income Tax payment. (Self – Employed Businessmen)
2. Agreement Copy: You should know what you are entitled to as a buyer. Hence, it is advisable to check the document vigilantly since it contains the closing date, contingencies, cost adjustments to be made at the closing, statutory taxes, agent's commission, advance maintenance amount, and other integral factors. If drafted poorly, you may lose your rights as a buyer.
3. No Objection Certificate: This document needs to be produced once you are done with the transfer and registration of the property. The society you will be residing in will make this document stating that they favour transferring you the share certificate. This also indicates that they have registered your name in their records for future references.
4. Sales Deed: One of the essential documents and last ones you will receive is the sales deed which will be given to you after the society and apex body has been formed. The seller should present it to the buyer as proof of ownership. Also known as the conveyance deed, it states that the property is free of mortgage and claims. It needs to be kept by both the buyer and the seller. Once both parties sign the act, the purchase or sale is legally complete.
So, go ahead, begin your house hunting sessions, and ensure to have this guide in handy!
