Owning a house is indeed an achievement to be proud of, especially with the current real estate prices being so expensive. Now, many people wish to buy houses but find the ready-to-move-in houses to be out of their budgets. If you are facing a similar dilemma, one solution is to go for an under-construction property. While under-construction properties are still quite an expense, going for one is still a more economic option as compared to the price of a constructed property.
Numerous lenders offer home loan plans for under-construction properties too. All you need to do is make sure you satisfy all the eligibility criteria and have the documents required for home loan. This will make the process of completing the documentation process much easier.
Therefore, here are the documents required for a home loan for buying an under-construction property:
- Sale deed
- Khata certificate as well as khata extract
- Documents for proof of income
- Letter given by the builder stating the latest progress of the property’s construction
- NOC (No Objection Certificate) given by the builder
- Complete set of KYC (Know Your Customer) documents
- Stamp agreement with the builder which is duly registered
Before a financial institution sanctions a home loan, it will need the above-mentioned documents to complete its verification process. Keep these ready for the entire process to be hassle-free.
If the project has not been registered yet, make sure to ask the builder to provide the following documents:
- Copy of the money receipt (original) which has been issued by the Sub-Registrar
- Copy of the authority letter that has been acknowledged by the builder
- Acknowledged copy of the authority letter which is addressed to the Sub-Registrar
- Copy for proof of the own-contribution amount
- Copy of the agreement with the builder
While you are getting the above-mentioned documents together, do keep in mind to check with the builder about whether the current project is tied up with any lender. If the project does have a tie-up, you can have the option of directly getting all the verification documents from that lender. This does not mean that the same lender has to be chosen when you apply for home loan. Many people do not understand why the banks are so rigid regarding these documents, especially when the property is under construction. However, having these documents in order works to their benefit. If there is ever a dispute in the future about the project completion date or any other terms and conditions of the sale, these documents act as proof of property ownership for the borrower.
Therefore, these are the documents that financial institutions are going to require when you apply for a home loan. However, different lenders can have varied requirements, so it is considered best to check with the lender regarding their specific documentation requirements. This way, you can be ready with the home loan documents and not waste any time in this process.