What documents is required in home loan

What documents do I need for a mortgage?

No general statement can be made about which documents the bank needs from you for a mortgage loan. The financial requirements of each individual borrower are too different for that. The properties also specify which documents must be submitted. Different documents are required for a new building than for a listed building.

General documents for a construction loan

There are some documents that are usually required from any bank. This checklist shows which include, among other things:

  • The last three salary statements (pension notices for pensions)
  • Current pension information
  • Last income tax assessment
  • The SCHUFA self-assessment signed by you
  • If necessary, proof of private health insurance
  • Proof of further credit
  • Notification of impending bankruptcy proceedings or previous asset losses by a bailiff in the last five years

In addition, other documents are required from self-employed borrowers:

  • Balance sheet and profit determination
  • Economic evaluation
  • Shareholder agreement, if any
  • Extract from the commercial register
  • In the case of related companies, an overview of the interdependencies

The bank will use the documents submitted to check your creditworthiness and creditworthiness. So the bank tries to weigh the risk it takes in lending you money. The better your financial situation, the more willing the bank is to provide you with the money. After all, the bank would like to have the money back, including interest, at some point.

Documents about the property

The bank also requires some documents about the property. This enables the bank to better assess the value of the property. She checks whether the value of the property justifies the size of the loan. In the case of a foreclosure auction, she would like to be able to cover the outstanding balance of the real estate loan with the sum from the foreclosure sale. The following documents must therefore be submitted:

  • Purchase contract or extract from the land register
  • Construction plan / floor plan
  • Zoning plan
  • Gross floor area calculation
  • Calculation of living / usable space
  • Location / cadastral plan
  • Building description
  • Construction cost estimate
  • Approved building application
  • Copy of shell insurance
  • List of personal contribution
  • Declaration of division
  • Calculation of ancillary costs
  • Extract from the building load index
  • Development costs
  • Cost estimate
  • Expose
  • Photos of the property
  • Copy of building insurance

Since every real estate financing is designed a little differently, it is possible that you also have to submit additional documents. Each bank requests different documents in order to process your loan application. If one bank has to have the architect's stamp on the floor plan of the house, this is no longer necessary for another bank. In this case, your mortgage specialist will help you and name the missing documents for your mortgage lending. Your on-site advisors will also help you with the procurement of documents to be submitted. A fee may then be charged.

If you would like to find out more about the formalities involved in purchasing real estate, please read our article: Process of a construction loan.

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