Why is it important to properly prepare your mortgage application?

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Buying a property is a project that requires good preparation, on all levels. Once the borrower has found the house, apartment or land in which he wishes to invest, it is important to prepare the documents to be provided for the property loan. The quality of the property loan application file has a major influence on the decision of approval or not by the financial institution. What should a good property loan file contain? Discover, in this ultimate guide, all the simple advice to implement to maximize the chances of making a property investment a reality!

In order to moj database assess an investor's borrowing capacity very accurately, lending institutions need a certain amount of information concerning the borrower's financial situation. Thus, banks are likely to ask to provide the amount of income of all co-borrowers participating in the real estate investment project. But also, they must know the investor's expenses and professional situation in order to define their borrower profile as reliable as possible.

In addition, the mortgage application must also demonstrate that the borrower is able to manage his money responsibly, and that he has a certain skill in saving . This demonstrates his healthy relationship with his expenses, but also provides proof of thoughtful management of his bank account.

Preparing the real estate credit file
The complete mortgage application file will contain many documents. First, the personal documents concern the borrower's identity as well as their family situation. Documents that justify their financial situation will also be requested, and finally, the file includes all the documents relating to the real estate transaction.

Personal documents to provide with your mortgage loan application
identity document;
proof of family situation;
proof of address;
employment contract.
In order to complete the mortgage application file, the mandatory proof of identity is done by presenting a valid identity card or passport. If several people borrow a property jointly, each of them must provide proof of identity. To certify the family situation, a copy of the family record book or a certificate of cohabitation is sufficient. It is also essential to provide all certificates indicating the payment of a possible family allowance or housing assistance, which are considered to be additional sources of income. As for proof of address, it is sufficient to provide a photocopy of an energy bill, a tax notice or a mobile phone contract in the name of the borrower. Finally, with regard to the employment contract , it is a question of demonstrating that the applicant is indeed on a permanent contract and has a regular source of income.