Buying a home is an important milestone in the lives of many. However, it is often necessary to take out a home loan to make this dream a reality. Applying for a home loan involves many things, including gathering the right documents. In this article, we will discuss what documents you will need when applying for a mortgage loan so that you are well prepared for the process.
Identification documents and personal data
To get started, make sure you have the necessary identification documents.
This usually includes:
- Identity card: In Belgium, an identity card is essential. Both the applicant and any co-applicants must provide copies of their identity cards.
- Passport: If you are not a Belgian citizen, a passport can serve as an identification document. Make sure the passport is up-to-date and valid.
Income certificates
One of the most important factors in assessing an applicant’s creditworthiness is income. Banks want to be sure you are able to repay the loan. Therefore, income proof is vital.
So be sure to provide the bank with the following documents:
- Latest pay slips: Banks usually ask for the three most recent pay slips of the applicant and any co-applicants. This gives a picture of current income. These pay slips are best not too old (maximum a few months, preferably as recent as possible of course). If you are self-employed, provide the most recent quarterly statement you have. Pay slips can be found via My Minfin.
- Employment contracts: It may also be helpful to provide copies of your employment contracts to prove that you have a stable source of income.
- Proof of other income: If you have other sources of income, such as rental income or dividends, you must provide proof of these. For example, the lease in question, but proof of recent deposits into your account can also prove this income.
No job or incapacitated for some time? Then you can provide a statement of your replacement income and if you have it, a certificate proving your disability.
Bank Documents
Banks would like to get a picture of your financial history and current situation. Therefore, you must provide the following documents:
- Bank statements: Copies of your recent bank statements give the bank insight into your financial activities and expenses.
- Proof of your savings: Copy or screenshot of your savings.
- Loan Overview: If you already have existing loans, you should document them. This includes remaining debt and monthly repayments.
Property documents
If you are buying an existing house, you should receive the title documents from the seller. For new construction or renovations, you will need other documents to present to the bank. Here is the overview for each category.
Are you applying for a loan for an existing home? Then provide the following documents:
- Notary deed: This document proves that you will become the legal owner of the property.
- Appraisal Report: This report (mandatory since 2022) gives a picture of the value of the house you want to buy. This allows the bank to see that the amount of your home loan matches it.
- EPC certificate: With this certificate, the bank is aware of the energy score of the house you want to buy. A bad score does not mean the bank will refuse a loan anyway, but technically they can. A good score means a small discount on the loan rate with some banks, so it can also play in your favor.
Are you applying for a loan to renovate? Then provide the following documents:
- Invoices/Cost Estimate: Gather quotes for all desired renovations (from kitchens to a new roof) so the bank can get a good overview of the costs involved in your renovation. This will give you an idea of the amount you need to borrow for your home loan.
People who renovate may qualify for a specific remodeling loan. Read all about it here.
Are you applying for a loan to build a home? Then provide the following documents:
- Building permit: If this applies to the construction of your new home, the bank expects the permit to be granted before they will approve your home loan.
- Purchase invoice/compromise: If you are buying a new construction home, the purchase invoice from the developer or contractor is important for the application to determine the amount to borrow.
Other documents
In addition to the documents listed above, banks may require specific information depending on your situation. Some examples are:
- Proof of equity: Some banks require you to put in a certain percentage of the purchase price as equity. So they need to get a record of what you have in the bank.
- Proof of family and marital status: In some cases, the bank may ask for documents such as marriage certificates or birth certificates.
- Alimony: Are you receiving alimony? That too is proof of income and will be included in your home loan application. Provide proof of recent deposits.
- Debt Overview: You must provide a complete statement of your current debts. It’s best to be honest about this from the beginning, because the bank can officially check this and certainly will!
- Insurance: The bank will not easily approve a loan if you have not taken out fire and debt balance insurance. In practice, the bank will suggest taking that out with them, but you are not required to do so.
- Other certificates: There are 10 mandatory attestations when selling a home. Your bank may ask for these certificates to further evaluate the home.
It is important to note that the exact requirements may vary depending on the bank you work with and the specific loan agreement. It is wise to contact your chosen bank or lender in advance to obtain a list of required documents.
In Belgium, applying for a home loan is a detailed process that requires accuracy and diligence. Make sure you have all the necessary documents in order before submitting the application. This will not only speed up the process but also increase your chances of approval.
Once you have gathered all the documents, you can begin the next step in the process of applying for a home loan.