Home Loans Are For – Salaried And Self-Employed

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Home Loans Are For Salaried And
Self-Employed One of the main goals of many of us
today is to have our own house. For youngsters,
its a matter of pride to purchase their first
house, whereas for middle-aged people, buying a
bigger and a better house is a way to upgrade
their standard of living. Today, there are
plenty of housing schemes and easy availability
of home loans that can help in converting this
dream into reality. A home loan in Delhi gives
you that ability to purchase your dream house by
giving you access to the required funds at the
right time. However, in the present time,
getting a mortgage to buy a house is simple for
everyone, be it salaried, self-employed or
businessmen. Criteria For Obtaining A Home
Loan Healthy earnings and a sound credit profile
are considered as the general requirements for
obtaining a home loan, regardless of whether you
are salaried or self-employed. Indeed, your
earnings reflect your capability to repay the
loan, while your credit profile registers your
willingness and attitude to repay loans promptly.
To determine your eligibility to get a home
loan, the lender will ask you to submit certain
documents based on your work profile. These
documents are mainly required by the lender to
ascertain the source, consistency, frequency and
continuity of income for the loan to be approved.
And therefore, it is essential to understand the
difference between salaried and self-employed
people for home loans. For Salaried
Individuals In general, a salaried employee is
required to submit several documents including
salary slips of the past three months, bank
statements of the past six months, and the latest
income tax return form. Additionally, an
employment letter is also required in case the
period of service in the current job is less than
a year. For Self-Employed People In case of
entrepreneurs and self-employed professionals,
submission of documentary proof of their own
financial position, as well as that of their
business or practice, is quintessential to avail
a home loan. These documents include income tax
returns along with computation of income of the
last three assessment years, financial statements
certified by auditors, current account
statements of the entity and your savings account
statements of the past six months. Details of
ongoing loans of both the individual and the
business entity, including the outstanding
amount, installments and security are also
imperative. Furthermore, a list of Directors and
Shareholders with individual shareholding (as
certified by a chartered accountant or company
secretary), copy of Shop and Establishment
license, VAT registration or any other mandatory
license, Copy of Partnership Deed, Memorandum
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of Association and Articles of Association (if
applicable) and copies of education qualification
and professional practice certificates. Besides
these documents, one needs to submit KYC (know
your customer) documents along with
property-related documents, whether s/he is a
salaried or self-employed individual. Contrary
to the general belief, home loans in Delhi are
not only anticipated for salaried employees. In
fact, self-employed professionals, entrepreneurs
and salaried employees, every self-employed
individual can make use of housing loans. In
fact, the terms and conditions are the same for
every individual, however, the earnings and
creditworthiness are considered as the main
eligibility factors in obtaining home loans.
Earnings largely depend on the abilities and
experience of the customers, while solvency is a
product of discipline and ethics.
Creditworthiness is determined on the basis of
your credit history. Moreover, lenders have easy
access to detailed information on your credit
history, i.e. your repayment track record.
Moreover, a single delay in repayment may become
a hindrance in getting approval for new loans.
Therefore, you must make timely repayment of all
your dues, be it credit card bills, car loan
installments, utility bills or personal loan
installments.