What documents are needed for a mortgage

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Mortgage loans are in demand by banks. They allow each person or family to acquire their own property without having their own necessary funds for this. Such loans are provided only if potential borrowers meet numerous requirements. Additionally, you need to prepare a variety of documents for a mortgage. They may vary slightly depending on various factors, which include the use of collateral, the involvement of guarantors or the purchase of an apartment under construction.

What paperwork do I need?

Documentation can vary significantly depending on various factors, so the parameters are taken into account:

• the bank in which it is planned to apply for a loan, since the documents for a mortgage at Sberbank may differ slightly from the requirements at VTB 24 or another similar organization;
• purchasable property, which can be represented by a room, an apartment or a house, as well as an unfinished object, and some banks even offer the opportunity to obtain borrowed funds for the construction of a building;
• government programs in use, under which borrowers must meet certain requirements, and this must be confirmed by various documents;
• the need to attract a guarantor, as he must be a solvent citizen with a perfect credit history.

Regardless of the above conditions, certain papers must be prepared for the borrower himself. They must confirm that he really has the ability to repay the debt with all interest.

Personal Papers

What documents for a mortgage will be required in any case? These include personal papers of a potential borrower. This includes documentation:

• passport of a Russian citizen, since it is almost impossible for foreigners to get such a loan;
• work book, with the help of which bank employees can easily calculate the work experience of a potential borrower;
• documents confirming that a citizen has a specific education, and they can be presented not only with different diplomas, but also with certificates, attestations or references;
• papers confirming the status of the applicant, for example, a pension certificate, a certificate of a large family or a single mother;
• marriage certificate and documents for all children of a potential borrower.

Since a mortgage loan is considered a specific offer of the bank, the employees of these institutions responsibly approach the study of a potential borrower. Requiredprovide a lot of documents for a mortgage. Usually the list is issued by a bank employee. If at least one paper is missing, then this can become an objective and valid reason for being denied a large loan.

Documents confirming solvency

Each bank wants all funds issued with interest to be returned. Therefore, potential borrowers are carefully checked, as they must have solvency. Only in this case, you can be sure of the return of the debt. The documents required for a mortgage and confirming the financial condition of the borrower are represented by papers:

• certificate from the place of work of a citizen, which is compiled according to a special form 2-personal income tax, it indicates all the funds paid to a person for a year of work;
• a certificate in the form of a bank, which may contain slightly different information, but it will definitely have to be certified at work, so a potential borrower will not be able to enter any data into it;
• copy of the employment contract with the company where the citizen works;
• papers evidencing other income, which could be bank statements, rental contracts, rental agreements or other agreements;
• certificates indicating various valuable property that a citizen has, as this can confirm that the borrower is indeed a we althy person, so even if he loses his income, he will be able to use his property to cover the debt;
• bank statement,indicating that the applicant has funds that can be used as a down payment.

If at the time of applying to the bank for a mortgage loan a citizen has outstanding loans, then you must additionally take a certificate from the bank indicating the balance of the debt.

Other personal papers

Additionally, other documents may be required to apply for a mortgage. These include:

• certificate indicating that the applicant is not legally incompetent and is not registered with any medical institution;
• if a citizen works as a director, then he needs to prepare papers, on the basis of which it is confirmed that he is not a founder, since completely different requirements are imposed on such persons;
• certificate of family composition, as well as other documents indicating that the applicant has a spouse and children;
• certificate of the place of permanent registration of a potential borrower;
• if a man applies, he must confirm that he has a military ID;

Banks usually require both originals and copies of all papers. The originals are checked by bank employees, as they must make sure thatthe data in the copies correspond to the actual information.

What if there are multiple borrowers?

Spouse often acts as mortgage borrowers. In such a situation, each of them prepares the necessary documents for a mortgage.

It is advisable to come to the branch of the selected bank in advance to get a complete list of required papers. This will reduce the amount of time you have to spend preparing documentation.

Documents for IP

Often individual entrepreneurs want to apply for a loan. They usually work under simplified tax regimes, which makes it difficult to verify their income. Therefore, entrepreneurs prepare the following documents for obtaining a mortgage:

• standard papers presented by passport and application;
• certificate of registration of individual entrepreneurs and registration in a specific department of the Federal Tax Service;
• license to work in a specific area where this permission is required;
• declaration for a year of work or two years if an individual entrepreneur works on the basic basis.

If an entrepreneur uses UTII or PSN during work, then the documents do not contain information about the amount of income. Under such conditions, you will need to prove your solvency in other ways. For this, bank statements, documents for existing property or an account statement are prepared, indicating the regular movement of money. Often, even with such documents, banks require the involvement of a guarantor or co-borrower.

What is required of a co-borrower?

If the official income of the borrower is considered too low, then he can use the help of a co-borrower, as this will allow him to take into account his income. If the borrower himself is unable to pay the loan, then this obligation will be shifted to the co-borrower.

What documents are needed for a mortgage from a co-borrower? They prepare documentation:

• passport and its copy;
• certificates and other documents confirming different types of income;
• work book;
• SNILS.

It is these documents that serve as evidence that a citizen has sufficient solvency so that, if necessary, he can repay the loan for a direct borrower.

What is needed from a pensioner?

Often a pensioner wants to become a borrower. Older people often want to live separately from their adult children, but they may not have enough money to buy a home on their own. Therefore, they are forced to apply to the bank. The list of documents for a mortgage for a pensioner consists of papers:

• passport;
• pension certificate;
• documents for existing property that can be pledged to the bank;
• papers confirming that the pensioner continues to work, so he has an official salary that allows him to easily cope with loan payments;
• documentation indicating that the pensioner has securities or additional income.

The moredocuments will be handed over to a potential borrower, the more likely it is that he will receive approval from the bank.

Mortgage papers

If the borrower wishes to pledge his own property to the bank, then a mortgage is issued. In this case, papers are transferred to the bank:

• citizen's passport;
• property title papers;
• certificate of ownership of the object;
• technical papers obtained from BTI;
• extract from USRN.

If there are registered minor citizens in this object, the bank may refuse to accept it on bail, because if the borrower cannot pay the funds under the agreement, it will be impossible to sell such an object.

Documents for the purchased property

In addition to the personal papers of the borrower, documentation is required for the selected object, which is purchased at the expense of the bank. The number of documents depends entirely on what kind of property is being bought.

Paper will differ depending on the purchase of a finished house or an apartment in an unfinished facility. It is also not uncommon for people to even choose to build homes with borrowed funds.

Paper for an apartment or house

Documents for a mortgage on an apartment or a house are almost the same. They must be taken from the seller, who must be the owner of the object. Initially, you need to request a list of securities from bank employees, after which it is transferred to the seller. Most often, documents for a mortgage on a finished property must belike this:

• title papers for real estate, represented by an agreement for the purchase of an object, a deed of gift, a certificate of inheritance or similar documents;
• cadastral passport, and this document is valid only for 30 days, so you should make sure that it was received recently;
• an extract from the USRN containing information about all registered persons and past owners, and it is important to check who is registered in the object, since at the time of sale all citizens must be discharged from it;
• copies of passports or birth certificates of all owners, which must be indicated in the contract;
• extract from the house book;
• certificate indicating that the seller is a capable person, therefore he can make a decision regarding the sale of his property;
• Written permission is required from the spouse to sell an apartment or house;
• if there are children among the owners, then the seller must have permission to sell the object from the guardianship authorities.

If you use the help of a re altor, he also checks the seller, which allows you to make sure the expediency and legal purity of the transaction. What documents for a mortgage are needed additionally from the seller, you can check with the bank.

The buyer himself must pay an appraisal of the apartment or house to determine its market value. Based on this indicator, the bank decides what maximum amount will be provided on credit.

Paper for an object under construction

Often people want to buy apartments in a house under construction. In this case, a DDU is drawn up with the developer. The documents required for a mortgage in such an acquisition are represented by papers:

• direct DDU received from a bank-accredited developer;
• copies of the founding papers of the selected construction company, and registration certificate must be included here;
• order or order, on the basis of which an apartment is sold by a legal entity, and it should indicate the technical parameters of the object and its price;
• documentation confirming that a particular construction organization really has the right to build and sell apartments.

Usually no additional paperwork is required, since you need to choose developers accredited in the selected bank. In this case, it will be easy to apply for a mortgage. Banks require almost the same documents, so there are no problems with their preparation.

What do you need when building a house?

If people are building a house on their own, then they must confirm their ability to pay and spend on this process. What documents are needed for a mortgage at Sberbank or another bank under such conditions? These include:

• certificate of ownership of a piece of land where it is planned to build a residential facility;
• construction permit;
• an agreement drawn up with a construction company that will build the house.

Banks are allowed to require other certificates, if anydoubts that the funds will really be used for these purposes.

What do you need to participate in government programs?

Often, the state develops special programs on the basis of which citizens can use preferential loans. Documents when buying an apartment on a mortgage with state support may be different depending on the program chosen:

• when using mat. capital need a certificate directly;
• if you plan to apply for a mortgage without proof of income, then you usually only need a few documents, which include a passport, an application, as well as confirmation of the availability of other property and funds for investment in the form of a down payment;
• young families prepare papers for children and passports confirming that citizens are under 35 years old, they need extracts from the Unified State Register of Real Estate, with which they confirm that they do not own other real estate, and also they must additionally prove who live with children in cramped conditions.

Thus, different documents may be required to apply for a mortgage loan. They depend on various factors, which include the acquired property, the status of the borrower and the requirements of banks. It is advisable to independently find out from the employees of the selected banking institution about the necessary papers. This will allow you to immediately prepare the required number of documents, which are then submitted for consideration to the bank.