Home Loan Document List For Self-Employed Individuals

Understanding the intricate details of the home loan process can be overwhelming, especially for self-employed. But it doesn’t have to be. This is a comprehensive guide to documents required for home loan for self-employed individuals. It will provide you with all the information you need to make a well-informed decision about obtaining a loan.

Documents Required for Home Loan For Self-Employed

Home loan applications have a lot of documentation requirements. There are, however, a couple of documents that are usually required in every loan application. These documents include the following:

1. Credit Report: A credit report is a document that has all the details regarding your credit history and credit score. A credit report will show your credit history and give a general idea about the amount of risk you pose to the lender. Credit reports are generally needed for most kinds of loans and are used to determine the interest rates of a loan.
2. Statement of Financial Information: The Statement of Financial Information (SOFI) is a document in which you provide details about all your assets, liabilities, and income. This document is needed for many types of loans and can be used to decide on the terms of your loan. The lender will use this document to check if you have enough money to repay the loan without being a risk to them. These are the documents you can submit:
   • • Income Tax Returns with calculation for the last two years
     • P&L and Balance Sheet with all annexures (must be audited and certified by CA)
     • Account statement for the current account for the last six months
     • Your savings account statement for the last six months

3. Proof of Other Financial Obligations: Lenders will also want to see proof of your financial obligations, such as any existing debts you have. To prove your debt obligations, you’ll need to provide:
   • Mortgage statement
   • Car loan statement
   • Any other loan statements
4. Identity Proof: This is yet another important document required for home loan. This document includes one or a few of the following:
   • Voter Card
   • Aadhar Card
   • Passport with validity
   • Driving License
   • Credit Card with photo
   • Government-issued Photo ID card
   • Identity verification letter with a photograph from a recognized public servant or figure (less than a month old)
5. Address Proof of Residence: You will also need to submit proof of your address to the lender. You can submit one or more documents from the following list:
   • Voter Card
   • Aadhar Card
   • Valid Passport
   • Letter from a recognized public authority or public servant verifying your residential address
   • Latest Utility bill
   • Rent agreement on stamp Paper
   • Bank Statements reflecting your address of any commercial nationalized bank
   • Credit Card Statement (not older than 3 months)
   • Life Insurance Policy
   • Copy of Sale of the property (residence), if you own it
6. Address Proof of Business: Apart from address proof of your home, the same for your business is also a document required for home loan. You can submit a copy of any of the following:
   • Shops & Establishment Certificate
   • Trade License Certificate
   • SSI Registration Certificate
   • PAN Card/ Sales Tax/ VAT Registration Certificate
   • Partnership Deed (for firms) or MOA for companies
   • Export-Import Code Certificate or Factory Registration Certificate
   • Professional qualification Certificate and Degree Certificate for Professionals
   • SEBI Registration Certificate
   • The registration number issued by ROC

Tips for Preparing Home Loan Documents

It is important to submit complete, accurate, and genuine documents while applying for a home loan. Here are a few things you can do to prepare the complete and accurate documents required for home loan:

• Gather all the relevant documents: Collect all the documents that are relevant to your loan. If you don’t have the documents, then you will have to take them from the previous business or homeowners. Make sure to request genuine and legal documents from the previous owners.
• Submit original documents: Make sure to submit original and genuine documents. Don’t submit photocopies of the documents since the lender will reject these documents.
• Scan documents and store them in a secure place: Make a scanned copy of all the documents and store them in a secure place such as a cloud storage or a password-protected folder. You can also store them on an offline hard drive.

How to Choose the Right Home Loan for You

Pick the right type of home loan by keeping the following things in mind: –

• Budget: Before applying for a home loan, make sure that you have a budget that is realistic and tailored to your specific situation.
• Credit Score: Make sure to check your credit score before applying for a loan. If your credit score isn’t very high, you can consider applying for a loan with a lower interest rate.
• Rate: Choose a home loan that has a lower rate when compared to all other loan types. Make sure to check the different types of interest rates that each loan type has to find the best one for you.
• Term: A home loan term is the length of time for which you take the loan. Make sure to choose a long-term home loan since short-term loans have higher interest rates.
• Repayment: Choose a home loan that has a flexible repayment plan since most self-employed individuals may face difficulties in making monthly repayments due to their fluctuating incomes.
• Down Payment: Choose a home loan that has a low down payment since having a high down payment can make it difficult for you to apply for a loan.

Conclusion

Instant Loans and Instant Funds are a quick, simple, and stress-free solution to supplement your current Home Loan. Given this, it’s an excellent solution for covering any unexpected or urgent monetary demands.