Important documents for property financing

Together with buying a property, financing is an important step in many people’s lives. However, a number of important documents are required to realise the dream of owning your own home. In this article, you will find out which documents you need for successful property financing and what you should pay attention to when obtaining them.

The most important documents for property financing

The required documents differ slightly from bank to bank and depend on your personal situation. If you are self-employed, for example, you must provide an insight into business analyses if no salary statements can be submitted. In general, a distinction is made between documents that relate to the buyer’s financial situation and those that provide the bank with information about the property.

Proof of income

Proof of income serves to transparently present your financial situation to the lender and enables them to assess your creditworthiness. Typical proof of income includes payslips, tax statements, pension statements or profit and loss statements for the self-employed. The proof of income gives the lender an insight into your financial stability and ensures that you are able to meet the monthly loan instalments. It is therefore important to collect these documents carefully and submit them in full. If there are factors that reduce your income and influence your financial situation, such as existing loans or leasing contracts, you must also provide documentation for these.

Proof of equity

Proof of equity is an important part of property financing, as it shows the lender that you can finance part of the purchase price from your own funds. This includes, for example, bank statements showing how much equity you have available, as well as savings contracts or securities. By providing proof of equity, you can strengthen your credit rating with the lender and possibly obtain better conditions for the financing. Proof of insurance and savings contracts should also be kept ready and submitted.

Information about the property

This includes the extract from the land register, which provides information about the ownership structure and any encumbrances on the property. Equally relevant is the purchase contract, which regulates the legal framework for the property purchase. In addition, construction plans, energy performance certificates or expert opinions may be further relevant documents relating to the property that must be taken into account when financing. They also give the bank an overview of how much the property is worth.

Tips for obtaining the required documents

In order to efficiently obtain the required documents for property financing, it is advisable to start early and create a checklist with all the necessary documents. In some cases, you need to allow some time between applying for and receiving the documents. If you decide to process your property purchase in Berlin or Brandenburg with our team, we will organise all the necessary documents and ensure that everything runs smoothly.