Successful real estate financing – Have you decided on a rental or investment property, carried out a commercial review and a technical inspection and now want to start with the financing? Whether you have a lot or little equity, you depend on your bank’s support. Whether it is an apartment or a house or a apartment building, the integrity of your documents is important for your financing application. Discover in our guide which documents your bank advisor needs for this, from the property presentation up to rental contracts, including a checklist at the end.
Documents for the bank: photos, energy certificate and purchase contract
Loan applications for the purchase of real estate are part of your bank advisor’s daily activities. If you want to score points with your loan application, you should submit all important documents directly. This saves your bank time and effort, as it does not have to request new documents. Instead, the financing plan can be prepared quickly and the financing process can be completed. To ensure you can expect a quick approval of the financing, we recommend that you prepare your documents in two folders:
Folder: Credit rating
Folder: Object
Let’s now take a closer look at the object folder:
Exposure of the house and apartment: main property details
First of all, the bank needs a real estate file with the basic details of the house or apartment. Lastly, the bank needs to know the master data of the property. For this, you can create a property presentation or an information sheet.
You have the following options:
Real estate presentation
Information sheet
Photos of the building and property
In addition to the most important basic data, the bank also needs some photos of the property in order to get a visual impression. Make sure the photos were taken with good lighting. Daylight is best for this. You should also make sure the photos are of good quality so that the property’s details can be seen. The bank needs not only photos of the property itself, but also of the immediate surroundings and, if necessary, of the common areas.
You should attach photos of the following:
Property
Common areas
Immediate surroundings
Land plan, floor plan and insurance
In addition, the bank requires the cadastral map of the property and the land plan. The property plans and the calculation of the habitable area must also be attached. Another important document is the extract from the land register. The land register is an official and public register containing the legal relationships of ownership. In addition to land charges, mortgages, and encumbrances on the property, it also contains additional information about the respective ownership and housing relationships.
The following documents must also be sent to the bank.
Cadastral map and land plan
Floor plans
Calculation of the habitable area
Extract from the land register
Building insurance
Energy certificate
For the bank to get an exact idea of the property, floor plans and site plans are especially important:
Special case: Rental agreement for a rented property
You can buy a property rented or not rented. If you buy a rented property, you also need to provide the rental agreements to the bank. If the property is not rented, this step is not necessary.
Special case: Owners’ association (WEG)
If you purchase a house or an apartment as part of aproperty owners’ association (WEG, include the division declaration in your property file, as well as the relevant agreements, the last three minutes of the owners’ meetings, the collection of resolutions and the manager’s contract of the WEG. The fee declaration and the assessment of the property tax should also be in your folder.
Here’s a brief summary:
Division statement – with imprisonment certificate
Collection of resolutions – last 3 owners’ meetings
WEG management contract
Service charge statement
Property tax notice
In the end: sales contract draft
The last item in the folder is the draft of the sales contract, which completes the real estate folder.
Here’s a summary of the most important documents at a glance;
Property presentation / technical sheet
Photos of the building and the property
Land map, plan, insurance & Co.
Rental contract (if available)
Documents of the WEG (if available)
Once you have gathered all these documents, nothing will stand in your way on your path to successful financing.
Would you like to know more about buying an apartment or a house? Below, you can find out everything, from A to Z, about property or rental, financing a home, searching for apartments, real estate portals, real estate agents, appraisals, purchase prices, negotiations and taxes. The knowledge and experience of experts, in one single guide.
✓ A guide
✓ All the facts
Expert tips
✓ Checklists for buying
Learn step by step about the process of buying an apartment and many expert tips.
