So, are you planning to apply for a home loan and looking for the lowest home loan interest rate to get the best deal? It’s ok if you are doing so, but along with checking for the interest rate, you should know the essential documents you will need to apply for the home loan.
And when we are talking about the home loan document checklist, you should be aware that a sale deed is a must for home loan approval. Here, we shall try to focus on the sale deed and what makes it one of the essential documents for applying for your home loan.
What is a Sale Deed?
A sale deed is one of the most important documents used as evidence in a property transaction. The legal document reflects the transfer of property ownership, all rights, and title from the seller to the buyer.
No property transaction can be considered complete without properly signing the sale deed between the seller and the buyer. It is one of the essential documents required for home loan.
The sale deed provides legal status to the proper transaction after both parties are satisfied with the terms and conditions of the sale deed. A sale deed is the biggest proof that you are the property owner. It is through a sale deed that a property sale becomes a legal document.
Some essential details that the sale deed consists of are:
- Both parties’ details like Name, Addresses, Age, etc.
- Complete details of the property in consideration
- Sale amount, including a description of any advance payment made by the buyer
- Mode of payment
- The time within which the property title will get transferred to the buyer
- Actual home possession date
- Full authority of the buyer to sell
Importance of Sale Deed for Home Loan
Now imagine a scenario where the property purchase is made through loans. Suppose you are buying a home, and your home loan has been sanctioned for the same. In this case, is there no need for a sale deed? Well, a sale deed is a must, even if you are purchasing via a home loan.
The only difference is that in the case of involvement of a home loan in a property transaction, the sale deed is submitted by the buyer to the lender. So, you will have to submit the sale deed to the lender providing the home loan for you to purchase the property.
The lender will keep the sale deed until the full repayment of the loan amount. And, as per law, on fulfilment of loan amount repayment, the lender has to return the sale deed to the buyer within 15 days from the day when the loan is fully repaid.
So, along with the other documents in the checklist, there is particular importance for a sale deed when it comes to a home loan. The sale deed will confirm your ownership over the property, which is an essential document for home loan approval.