Supporting documents for your resources and financial situation
Posted: Sun Jan 12, 2025 4:20 am
Last 3 pay slips;
accounting balance sheet for self-employed workers;
retirement certificate;
amortization of current credits;
supporting documents for income other than salaries.
The application for a mortgage loan is conditioned by the borrower's financial situation. And this involves an in-depth study of all of their resources, regardless of their moj database origin. Thus, if the applicant is an employee, providing the last 3 pay slips can justify the continuity of the employment contract. Self-employed workers present an accounting balance sheet that includes the annual turnover achieved over the period preceding the application for a mortgage loan.
The mortgage repayment rate also depends on the borrower's expenses. It is then requested to provide an amortization table of all current loans. This document allows the financial institution to calculate the investor's borrowing capacity.
Contracts, quotes, and certificates relating to the real estate project
the compromise or promise of sale;
the estimate for the work in the case of investment in an old property currently undergoing renovation;
a reservation contract in the case of the purchase of a house or apartment in future state of completion;
the various energy diagnostics carried out by professionals;
the single energy performance certificate when purchasing new real estate;
proof of the request for a conventional loan if the borrower is eligible for the system.
Once the real estate investor has found the property that suits him, the seller can make him an offer to purchase. If a financial agreement is agreed, the parties can then sign the private sales agreement. This is a promise to purchase that binds the buyer and defines the various conditions of the real estate transaction. When applying for a real estate loan from a financing organization, this contract must be included in the real estate loan file . In fact, this document indicates, in addition to the total amount of the investment, the various clauses of the final conclusion of the sale.
Regarding the reservation contract, the latter applies to the purchase of a property in future state of completion (VEFA). If the investor plans to acquire a house, a renovated old apartment, in this case, he must provide in his file the entirety of the quotes for the work. Indeed, the amount of his expenses is included in the total amount of the property loan being applied for. It is then a question of defining a realistic price taking into account any unforeseen events that renovation projects may impose. But also, these renovation quotes must take into account any modifications required for the electrical installations and the piping system of the property concerned.
Furthermore, and more specifically concerning the acquisition of an old home, whether it is a house or an apartment, the borrower is required to provide various technical diagnostics. Indeed, these are carried out by experts who certify the good state of use of the property. For example, these technical diagnostics must include various aspects such as the rate of asbestos and lead contained in the structures of the building, but also the general state of the gas installations, or the electrical network. As a general rule, these documents make it possible to avoid possible hidden defects at the time of the realization of the sale of the property.
When the real estate purchase concerns a new property, in this case, the real estate loan application file must include the energy performance certificate. This is a mandatory document that determines the level of performance of the house or apartment. This certificate also provides an assessment of energy consumption and allows the buyer to know and anticipate the costs related to their future energy expenses.
Finally, if the buyer is eligible for a conventional loan system, he must complete his mortgage application with supporting documents. This element is essential, because it allows the investor's borrowing capacity to be precisely defined according to the total price of his property.
accounting balance sheet for self-employed workers;
retirement certificate;
amortization of current credits;
supporting documents for income other than salaries.
The application for a mortgage loan is conditioned by the borrower's financial situation. And this involves an in-depth study of all of their resources, regardless of their moj database origin. Thus, if the applicant is an employee, providing the last 3 pay slips can justify the continuity of the employment contract. Self-employed workers present an accounting balance sheet that includes the annual turnover achieved over the period preceding the application for a mortgage loan.
The mortgage repayment rate also depends on the borrower's expenses. It is then requested to provide an amortization table of all current loans. This document allows the financial institution to calculate the investor's borrowing capacity.
Contracts, quotes, and certificates relating to the real estate project
the compromise or promise of sale;
the estimate for the work in the case of investment in an old property currently undergoing renovation;
a reservation contract in the case of the purchase of a house or apartment in future state of completion;
the various energy diagnostics carried out by professionals;
the single energy performance certificate when purchasing new real estate;
proof of the request for a conventional loan if the borrower is eligible for the system.
Once the real estate investor has found the property that suits him, the seller can make him an offer to purchase. If a financial agreement is agreed, the parties can then sign the private sales agreement. This is a promise to purchase that binds the buyer and defines the various conditions of the real estate transaction. When applying for a real estate loan from a financing organization, this contract must be included in the real estate loan file . In fact, this document indicates, in addition to the total amount of the investment, the various clauses of the final conclusion of the sale.
Regarding the reservation contract, the latter applies to the purchase of a property in future state of completion (VEFA). If the investor plans to acquire a house, a renovated old apartment, in this case, he must provide in his file the entirety of the quotes for the work. Indeed, the amount of his expenses is included in the total amount of the property loan being applied for. It is then a question of defining a realistic price taking into account any unforeseen events that renovation projects may impose. But also, these renovation quotes must take into account any modifications required for the electrical installations and the piping system of the property concerned.
Furthermore, and more specifically concerning the acquisition of an old home, whether it is a house or an apartment, the borrower is required to provide various technical diagnostics. Indeed, these are carried out by experts who certify the good state of use of the property. For example, these technical diagnostics must include various aspects such as the rate of asbestos and lead contained in the structures of the building, but also the general state of the gas installations, or the electrical network. As a general rule, these documents make it possible to avoid possible hidden defects at the time of the realization of the sale of the property.
When the real estate purchase concerns a new property, in this case, the real estate loan application file must include the energy performance certificate. This is a mandatory document that determines the level of performance of the house or apartment. This certificate also provides an assessment of energy consumption and allows the buyer to know and anticipate the costs related to their future energy expenses.
Finally, if the buyer is eligible for a conventional loan system, he must complete his mortgage application with supporting documents. This element is essential, because it allows the investor's borrowing capacity to be precisely defined according to the total price of his property.