What documents are needed to apply for a mortgage?
Are you going to apply for a mortgage? It´s important for you to know the necessary documents.
When applying for a mortgage there are key documents that you must have in hand. With these documents, the bank will evaluate your income and the property on which the mortgage constitutes to determine your chances of returning it. Knowing the ones you need and having everything well organized will play in your favour to make the bank give you the definitive yes. That's why we're here, so you don´t miss out!
There are two types of documents that should be presented.
The common ones, which are the same for everyone and some others that depend on your work situation.
Let's start with the common ones:
- DNI o NIE (if you are a foreigner.)
- Your working life history. This document has to be previously requested at the Social Security.
- The bank statement of the last months or a justification of your current income (this may vary depending on the bank.)
- The last declaration of the PIT.
- If you have other loans, their last three receipts.
- The public deeds and simple notes of any other properties (if existent.)
- If you are living in a rental house, the lease and the last receipts.
- If you are separated, the court judgment.
Once you have these documents prepared, you can continue with the specific ones.
First, if you work for a third party:
- Photocopy of the last three payrolls.
- Photocopy of the current work contract.
Second, if you are self-employed (autonomous):
- Photocopy of the three previous VAT declarations. You will have to present both the fractioned payments and the annual summary.
- Photocopy of the last three declarations of the PIT.
- Last payments of the Social Security.
- Extracts of accounts of the last years.
With all the documents in hand it´s important for you to know how to present them to the Bank. You may think that this is not a big deal, but these details are what make the difference. When presenting the documents you must be clear and organized. Don't make the bank waste time but speed up it´s work. This will give you a good image.
Careful, you have to keep in mind that each bank is different and although the documents previously shown are the most common ones, your bank may ask you for more. Talk to them first and make sure you have everything they are looking for. This will position you ahead!
There are other documents you must also take into account. They are the ones the bank presents to you.
It´s important that you understand them as all the important things come from here:
- The mortgage information sheet. In this document, you will find all the necessary information and conditions of the loan. It´s not personalized information, it´s simply a guidance.
- The personalized information sheet. This sheet, as the name indicates, is personal and provides information on the specific conditions of your case.
- The binding offer of the mortgage. Once the previous steps are verified and with the property already assessed this offer is made. These are the conditions that the bank is obliged to maintain.
- The mortgage contract. The bank will offer you the deeds a few days before signing at the notary, so that you can check if everything is in order.
Following these tips I´m sure you know everything, or almost everything! You are ready!!!