The lender firstly asks for bank account statement whenever you approach for a home loan. This is the part of verification process as the financial creditors need to assess your financial condition on a whole. Apart from this, the bank account statement also reflects your habits in regard with the expenses and saving. So, have a look that reasons that make bank account statement an essential document for availing a home loan.
1. To Check Loan History
The lender asks for the bank account statement to check your loan history as the entry of loan disbursal and EMI transaction reflects in the statement. Also, the financial creditor comes to know about how many loans you have availed and also get to know if you have any loan going on at present. This is important for a lender to check because the loan sanction amount depends upon the currently availed loans. Remember that a current loan minimizes the chance of availing a larger amount of loan.
2. Nature of Activity
The second important thing that a lender looks for is the genuine activity of the loan applicant. However, the asking conditions are different for the self-employed and for the salaried person.
The financial creditor asks for a bank statement from which the money is transferred for the business purpose or is credited to another account for trading. Through these transaction details, the lender can figure out the real situation of your business and can also verify details like sales and more that are declared by you in the Income-tax returns. This is also helpful to match the figures given in the loan application form.
For Salaried People:
In the case of the salaried people, the financial creditor check for genuine salary figure which is clearly shown in the bank account statement of every month. The lender also matches the salary amount with the amount declared in the Income-tax return in order find you as a reliable and a clever applicant.
Also, the regular deposition of same salary amount in your account makes the financial creditor trusts you to be a genuine applicant. In case of irregularity, you are likely to be seen with faulty intentions or with suspicion.
3. Cheque Activities
The cheque history shows if you have any bounced or unpaid cheques in regard with your account or with any other person’s account. Also, the bounced and the returned cheques indicate your financial condition and thus the lender looks for more documents to verify you as a genuine loan applicant.
4. Account Balance and Savings
The account balance and saving are the two main part of life as a person can’t sustain with zero savings. The financial creditor looks for these two compositions from the bank account statement to know what if you have a financial crunch. These two details let the lender know about your ability to repay the loan amount no matter what the situation is. Also, this gives the lender a belief that the loan sanctioned to you is not going to remain outstanding.