One of the most frequently asked questions we ask ourselves when we want to apply for a mortgage is what documentation we will have to provide to start the process so that the bank can evaluate our request for financing.
The requested documentation can be divided into three large groups: that which is necessary to evaluate the property we want to buy (which will be the guarantee for the mortgage loan), the documentation that the entity requires in order to evaluate our capacity to meet the payment of that loan and analyze, mainly, our income and, finally, personal documents.
What personal documents should I submit when applying for a mortgage?
As for personal documents, we must provide a photocopy of the DNI, passport or residence card and NIE, if you are an immigrant.
If we have separated or divorced, we will also be asked for the judgment and regulatory agreement.
What income documents will I need to provide?
The documents linked to our working life and income will depend on our professional situation. That is, they will vary depending on whether we are employees, self-employed, entrepreneurs or pensioners.
Employee: You must submit your employment history report (or employment contract), your most recent pay slips and your most recent tax return, including the validated payment letter. In addition, if applicable, we will have to provide other proof of income.
Self-employed (freelancer): In this case, more documents must be submitted:
- The latest tax returns, including the validated payment letter.
- The fractional payments of the current year.
- The certificate of employment.
- The latest annual VAT returns and the quarterly returns for the current year.
- Certificate of contribution bases.
Entrepreneur (business owner):
- The latest Corporate Taxes.
- The CIF.
- The company's articles of incorporation.
- The latest tax returns, including the validated payment letter.
- The latest VAT returns and the quarterly returns for the current year.
Pensioners: the document proving receipt of the pension and the last income tax return, including the validated payment letter.
The financial institution may ask us for bank statements from the last few months to analyse our current financial situation and also ask us for the status of other loans we have pending payment (normally, the last three bills paid).
Likewise, if you have other income, such as rent, you must also provide proof of this income and the bank statements where it appears.
Finally, if we have savings or more assets, we must also provide documentation to justify this.
What documents related to housing must be provided?
To ensure that the home or property we are going to acquire can act as collateral for the mortgage loan , the entity will also request the following documentation:
The title deed: to know the characteristics of the property that will be the guarantee for the mortgage.
The simple note from the Property Registry: this document contains the ownership of the property in question and the charges that encumber the property, if any.
Sales contract or signal contract : they express the will of both parties to carry out the sales transaction.
Proof of payment of the Property Tax (IBI) : to ensure that there are no outstanding fees.
The request for all this documentation will vary depending on whether it is a new development (and the IBI has not yet had to be paid, for example) or a second-hand one. There will also be variations if we intend to subrogate a mortgage with the same bank or for a property that the bank knows nothing about.