Acquiring a home and finally becoming a homeowner is a major project coveted by many people! A project requiring most of the time to resort to a loan. The constitution of your mortgage loan file is very important. Back on the supporting documents to provide for your mortgage.
Home loan application: why is it so important?
A mortgage loan file allows the bank to collect all the information concerning the borrower, from a personal, professional and financial point of view. These data are essential. Thanks to the mortgage loan file, the bank can study in detail the situation of the borrower, and thus, give or not its approval as for its request for credit.
We strongly advise you to gather all the supporting documents before even making your request. There are two reasons for this:
- This will prove that you are a serious borrower.
- You will save valuable time and get a quick response. If you agree on the requested amount, you can move your project forward quickly.
You will certainly ask several banks to compare the proposed borrowing rates. Once your file is complete, remember to make copies.
Good to know: the rate on which to base yourself to compare well
On a credit contract offer, two rates appear: the nominal rate and the annual effective annual rate (APR). Only the APR allows you to make an effective comparison. Why? Because this rate includes all the costs of the mortgage (nominal rate, but also administrative fees, cost of insurance, etc.).
Now that you know the importance of providing the bank with all the supporting documents for your mortgage, let’s get started!
What are the different proofs of mortgage?
Several types of documents are required for a home loan. Typically, all funding agencies request the same documents.
In the borrower’s personal documents, we find:
- Identity document (identity card, passport, etc.);
- Proof of address (water, electricity, telephone bill, etc.), which must be less than 3 months old;
- Proof of family status (family book, marriage contract, PACS agreement, divorce judgment, etc.);
- The last receipt for rent.
Proof of income
When analyzing a mortgage loan request, the bank pays particular attention to the borrower’s financial situation. To this end, she requires that her mortgage loan file include:
- His last 3 pay slips;
- His last 3 account statements;
- His last 2 tax notices.
To have a broader view of the borrower’s finances, the bank also requests documents justifying any sources of additional income, such as:
- Family allowances;
- Rental income.
Documents justifying the borrower’s assets
Another key variable is the borrower’s assets. The existence of an investment is always reassuring for the bank. Because even if the borrower does not want to use it as personal contribution, it proves that he is a good manager. If he owns a property, it can be provided as a guarantee.
Depending on the case, the borrower will add to his mortgage loan file:
- A summary of its investments (booklet A, housing savings plan, etc.);
- The title to the property (s) owned;
- His latest property tax notices;
- A certificate proving his quality as an heir;
- A donation certificate, accompanied by the identity document of the donor and a document proving the value of the property.
Documents relating to outstanding credits
If the borrower has outstanding loans, he must also let the bank know by sending him the relevant loan contract offers. These proofs of mortgage must be accompanied:
- Situation reports in the case of revolving loans or other variable rate loans;
- Deadlines in the case of fixed rate loans.
Note: are you a co-borrower?
In this case, all of the documents requested must imperatively be provided both by yourself and by your co-borrower.