If you already have a clear idea of your future home and have decided to finance your plans with a mortgage, your mortgage adviser will require several documents from you. First of all, you must provide at least two forms of identification for the mortgage applicant and any co-applicants. You must present a valid ID along with your driver’s license. If you do not have a driver’s license, you may use a valid passport, birth certificate and, in exceptional cases, a health insurance card as an alternative document.
Proof of income to obtain a mortgage
In addition, each mortgage applicant must provide the bank with proof of the amount and source of income. In the case of employees, the employer confirms the income from employment on a special form provided by the bank. Each bank uses its own form. Self-employed persons (mortgage for self-employed persons) will need a recent tax return confirming payment or overpayment of tax. If your income is a pension or other benefits paid by the state, you will submit a certificate from the Social Security Administration to your provider. Banks also always require the last three bank statements.
In addition to income, banks also monitor the amount of all existing financial liabilities. Applicants for a mortgage inform the bank how much they owe and how much they are repaying on other consumer loans, short-term loans or mortgage loans.
In principle, each mortgage is secured by the property and the bank itself makes an estimate of its price. The other documents to be submitted vary depending on the purpose of the mortgage.
List of documents to be submitted to the bank according to the purpose of the mortgage
- Purchase of real estate – the mortgage applicant submits draft contractual documentation (purchase agreement or future purchase agreement)
- Reconstruction – the mortgage applicant submits a reconstruction budget and, if required by law, project documentation
- Construction – the mortgage applicant provides the bank with a budget and project documentation or at least a study that is clearly outlined and shows the size of the building
- Settlement of assets – draft contracts for mutual settlement are required
The documents and papers described above are among the basic ones that mortgage applicants usually submit to the bank. Individual banks may request additional documents.