Request of Mortgage: the necessary documents
When your decide to buy a house with the support of a bank loan we must initially proceed to a series of financial assessments with the bank, and add all the documentation of the property that must be submitted at the time of the request.
The first stage for access to a mortgage opens with the inquiry: the customer’s intermediary checks the income, assets, and guarantees offered by the client himself in order to fully analyze and evaluate his repayment ability over time.
In general, the documents to be submitted to instruct the banking practice in order to obtain a first favorable opinion of the Banking Institution involved concern all the customer’s economic information and specifically:
– personal data, such as age, residence, marital status, and any property conventions stipulated by spouses or parts of a civil union;
– official information certifying the ability to earn income: for employees the documentation includes the employer’s declaration of employer, generally the last 3-5 monthly salary, and finally the copy of the income declaration of the last one to two years; While for independent workers or freelancers, the last two to three income statements and sometimes the attestation of enrollment to the specialists;
Analyzing the customer’s financial position and its ability to repay the loan in the economic terms and conditions agreed between the parties, the granting of the loan is subject to the urban and economic analysis of the property on which the guarantee must be entered into for the Bank; then all the building concessions issued for the construction, the certificate of habitability, the cadastral plan, which will faithfully represent the existing state of the property, must be provided to the Real estate Bank expert in charge of the expertise, the last purchase notary deed or eventual declaration of inheritance, as well as a copy of the preliminary sale contract (“compromise”) if signed by the parties.
The guarantee that the intermediary / Bank asks for is a legal mortgage on the property which value is usually written about 1,5 to max two times the value of the loan (eg if a loan of € 100,000.00 is granted the mortgage will be € 150,000.00 – 200,000.00: this value difference serves to ensure the intermediary / bank is an amount to which it will be liable in case of legal action for non-payment of the agreed mute rates).
Guaranty – If the customer has a low income rate, does not have a stable job or asks for a mortgage for an amount greater than 80% of the value of the property, the lender may require further guarantee integration: the most widespread is the guarantor who is issued by a subject other than the mortgaged customer, with whom the third party named in jargon agrees to repay the entire loan with all of his assets.
Timing for Loan Delivery – The timing for obtaining the mortgage may vary depending on the intermediary / Bank appointed: the time taken by the submission of the documentation and the actual delivery of the sum are generally indicated in two or three months. The mortgage will be made available to the broker / bank in favor of the customer at the same time as the subscription of the notary loan and purchase agreement to be signed by the Notary Office charged by the client; sometimes for a higher degree of security the payment to the Seller is not disbursed on the day of signing the contract but directly from the Notary, following the Transcription of the Notary Deed of Purchase at the Real Estate Registry, which effectively consolidates the mortgage registration.