Self-disclosure for house & apartment loan

Self-disclosure contains your income, assets, expenses, debts & Schufa query. You get the self-disclosure from your bank. So you know how much credit your bank will give you for your property.

Self-disclosure contents

At a glance:

1. Personal data
2. Revenue and assets
3. Expenditure and debt
4. Documents
5. Consent Schufa query (creditworthiness)

Personal data

• Name, date and place of birth
• Address and contact details
• Marital status and number of children
• Nationality

Revenue and assets

• Income from salary, self-employment, rental income, etc.
• Savings and investment accounts
• Real estate holdings and their estimated values
• Securities, shares and other assets

Expenditure and debt

• Monthly expenses such as rent, loan installments, living expenses.
• Existing credits and loans
• Open invoices and payables

Documents

• Proof of salary for the last few months
• Bank statements to confirm your financial situation
• Evidence of other assets, such as securities or savings books
• If you are already a customer at another bank, inform about your account there

Consent Schufa query (creditworthiness)

• Allow the bank to check your creditworthiness with Schufa or other credit bureaus
• A positive credit rating increases your chances of obtaining favorable financing

Bonus tip 1: Go to the bank before the deal moment

Before you jump into the real estate market, I recommend building a good relationship with your bank ahead of time.

That doesn’t just mean when you need financing. Bank advisors can give you valuable tips and advice to improve your financial situation.

Bonus tip 2: Say hello to bankers even when times are good

Building a relationship with your bank advisor is not a one-way street. Show interest in your bank advisor, even if you don’t need financing right now.

Visit the bank to give updates, talk about your plans, or just say hello. This can help you get better support during difficult times.

Self-disclosure simply explained

Self-disclosure for real estate purchase or financing is an important step on the path to your dream home. By properly compiling the required information and maintaining the relationship with your bank, you can ensure that the process goes smoothly and you get the best terms for your real estate financing. Check out my new YouTube video for more useful tips and information on this topic.

Lukinski YouTube: Yield, Capital Investment & Co.

Discover with me the crucial factors, key figures and basics of real estate investment. Compared to other forms of investment, real estate offers a ‘safer’ way to invest capital with consistent returns and long-term appreciation. Want to invest your money wisely? My recommendation: Real estate, passive income and a good life.

• Lukinski YouTube

Der Beitrag Self-disclosure for home loan & apartment loan: how much loan will you get from the bank? – new video! erschien zuerst auf ℄ Real Estates.

Determine maximum purchase price: Important factors

One of the most important steps in the purchase of a property, which is often underestimated, is the determination of the maximum purchase price of the property. In order to avoid unwanted surprises here, it is important to determine this before you start looking for a property. This usually involves sitting down with your bank advisor and going over your finances. You then show a certain amount of equity and the bank then gives you a corresponding loan. The amount of this loan depends on your creditworthiness (for this you have to submit a self-disclosure ), as well as on your equity to be presented. The loan-to-value ratio of the property and the monthly charge are also taken into account.

Equity X + Bank loan Y

These are the factors that matter:

• Credit rating
• Mortgage lending value of the object
• Available equity
• Monthly load

Let’s now go through the individual factors in a little more detail:

Credit rating: assets vs. liabilities

When your credit rating is checked, your assets and liabilities are mentioned and compared. If the balance is positive, i.e. your assets outweigh your expenses and liabilities, your chances of getting a loan are very good. And the higher this credit rating, the lower your equity investment. After all, the bank also wants your money back as soon as possible and wants to be sure to get it.

Assets are matched with liabilities

Mortgage lending value of the property: market value & fair market value

The mortgage lending value of the property is generally lower than the market value. The market value is the selling price of the house or apartment if it were sold at the present time. Therefore, the market value is also called ‘theoretical market value’. The mortgage lending value is on average 20% below this. In order to minimize the risk of loan default, banks base their lending decisions on the mortgage lending value and not on the market value.

Mortgage lending value = market value – 20%

Available equity: Dependence on the balance sheet

As a general rule, 20% equity capital is needed. As mentioned before, the exact amount of equity ultimately depends on your credit rating. The more positive your balance sheet, the less equity you have to show. So you can also invest with an equity of 10% or 15% already in a property.

The better the credit rating, the less equity capital

Monthly load: income & expenses

The last important factor that influences the financing and thus the maximum purchase price is your monthly burden. Similar to the credit check, income and expenses are compared here. This is important for the bank, as it allows them to set the conditions for repayment, interest and redemption.

Conclusion: Determine maximum purchase price & financing

So, in addition to your credit rating and available equity, your monthly financing and loan-to-value also matter. This way, you can not only determine the maximum purchase price before you start looking for real estate, but also determine the terms for repaying your loan.

Buying real estate: Learning from A-Z

If you want to learn even more about the maximum purchase price, stop by our guide:

• Purchase price height (external)

â A guide â all the facts â insider tips â buying checklists to the questions that real estate newcomers have when buying the apartment: Owner-occupancy or rental, financing a condo, apartment hunting, real estate portals, realtors, appraisal, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide. Learn step by step the process of buying an apartment and many insider tips!

• Buy apartment

Der Beitrag Determining the purchase price: The most important criteria for your financing – credit rating, equity & Co. erschien zuerst auf ℄ Real Estates.

What does self-disclosure mean?

The self-disclosure is a proof of your creditworthiness. It includes your monthly income, expenses, assets and liabilities. The self-disclosure is completed either by you, as the sole applicant, or with a second borrower, your co-applicant.

Download: Free Template

There is no official self-disclosure, for example from the tax office. The form and contents are freely selectable.

Here you can find the self-disclosure free of charge, as a good and complete PDF and Word template:

• Self-disclosure – PDF
• Self-disclosure – Word

Structure of the self-disclosure

Before you get to know the individual steps, here is an overview of the structure of the (or this) self-disclosure.

1. Personal data and activity
2. Monthly income and expenditure
3. Assets and liabilities
4. Object to be financed and financing structure (repayment)
5. Consent Schufa information
6. Annex: Proof of income

All the information you provide here comes from yourself. Hence the name of the self-disclosure. It is important, and you should always bear this in mind, that all information must be verifiable.

Financing in brief: framework data ‘ Step 1

To begin with, summarize the framework data of the desired financing. Really, in extremely short form!

• Financing projects
• Type of property
• Use of the property
• Sole applicant or co-applicant

Personal details (borrower) – Step 2

In the second block, you provide information about your personal data. Either as the sole borrower or together with your co-applicant.

• Personal details
• Activity data

Credit rating: Income – Step 3

From the personal data and the activity you come in step 3 to the monthly income and expenses. Here you compare both blocks and calculate the sum. Your result should be a surplus and this surplus is your financial margin.

Monthly income

Monthly income includes income from wages and salaries, but also other variable, regular sources of income.

• Wage / salary (net)
• Recurring monthly variable income
• Income from self-employment
• Pensions and annuities
• Rental income (cold)
• Child benefit
• Maintenance
• Other income

Monthly expenditure

The monthly expenses include the warm rent, or the loan, or the amount of the monthly repayment.

• Housing costs; rent or loan
• Will there be no housing costs in future: Yes / no?
• Health insurance
• Other insurance (pension, building society, life insurance, etc.)
• Cost of living
• Loans
• Leasing
• Liabilities
• Child support obligations
• Other expenditure

Net worth (assets / liabilities) – Step 4

After listing your regular, recurring income and expenses, here is a list of your assets and liabilities.

Again, let’s take a quick look at an example of what belongs in the listing. Let’s start with the assets:

Calculate credit

In the section on assets and credit balances, list the following assets:

• Bank and savings accounts
• Securities (market value)
• Insurance policies (surrender value)
• Real estate assets
• Building savings balance
• Other assets

Calculate liabilities

On the liabilities side, then:

• Bank, instalment and leasing loans
• Guarantees
• Other liabilities

Real estate and financing: Use of credit – Step 5

In the penultimate, fifth step, you give your banker an overview of the property and the financing structure (repayment).

Property

First give your bank an insight into the property to be financed. Purchase price, type of property, type of use, here is all the important information for your bankers.

• Exact address (street, house number, postal code and city)
• Type of use
• Year of manufacture
• Real estate type
• Living space (m²)
• Plot (m²)
• Commercial (m²)
• Rented (m²)
• Undeveloped area (m²)
• Construction
• State
• Last modernization (year)
• Pitches
• Room (for apartment)
• Residential unit (no. according to declaration of partition)
• Location in the object (for apartment)
• Special features

Financing structure and loan amount

After you have described your financing wish, it goes to the amount and the repayment of the financing.

• Purchase price
• Property
• Conversion / Modernization
• Building costs (house)
• Outdoor facilities
• Incidental building costs
• Real estate transfer tax
• Own contribution
• Outdoor facilities
• Notary and land register
• Real estate agent
• Inventory
• Financing costs

In the area of loans:

• Amount
• Debit interest rate
• Redemption
• Rate
• Unscheduled repayment option

Schufa information and data protection – Step 6

Last but not least, you agree to a Schufa query and the privacy policy in your self-disclosure.

Tip. Once a year you get this self-disclosure free of charge:

• Schufa (external)

Supporting documents (income/tax return) – Step 7

Now you still prepare the appendix, your proof of income. For this you need the following documents, as an employee or self-employed.

Documents for employees:

• Last 3 pay slips
• Wage statement from December, previous year
• Last tax assessment
• If real estate assets, also income tax return
• Copy of identity card
• Schufa self-disclosure

Documents for the self-employed:

• Last 3 tax assessment notices
• Last 3 tax returns / balance sheets
• Ongoing BWA (business management analysis)
• Copy of identity card
• Schufa self-disclosure

Conclusion and 3 tips for buyers

Congratulations! You have created your first self-disclosure.

Download: Free Template

Here you can find the self-disclosure free of charge, as PDF and Word template:

• Self-disclosure – PDF
• Self-disclosure – Word

Here are a few more important tips.

Tip 1: Bank details and good relationships

In each self-disclosure must be a bank account, or the banking institution. Choose a bank or a bank account of a bank with which you have a good relationship.

Tip 2: Step 5 with financial advisor

In the sixth step, you give your banker information about the property of your choice, as well as the financing structure. It is best to discuss this part with a financial advisor.

Tip 3: Accurate submission of documents

Really make sure that everything is submitted accurately, with all the important documents. If a mistake creeps in already here, this immediately reduces the chance of real estate financing by your bank.

Der Beitrag Self-disclosure explained: financing at the bank for house & apartment erschien zuerst auf ℄ Real Estates.

Material value calculation – simply explained with the most important tips

Buildings and outdoor facilities are valued for the asset value. The asset value method is primarily used for properties not traded on the rental market. Tangible values are determined for owner-occupied single-family houses, whereby the property is also valued using the comparative value method.

The calculation first uses the standard land value to determine the market value of the land, then the real value of the building is added.

The real value of the building is calculated on the basis of the building’s production costs less any reductions for age. The real value of the land (market value of the land) and the real value of the building are added together and multiplied by a real value factor.

The calculation of the asset value factor is based on the building type, the preliminary asset value and the standard land value. The total tangible asset value determined in this way indicates the financial resources that would be required to rebuild the property.

Calculation example: tangible value

For the calculation of the tangible value of a property, we assume the following data as an example:

• Land value: 100.000 Euro
• Real value of the building: 150,000 euros
• Material value factor: 0.5

This results in the following calculation:

Value in kind = (100,000 Euro + 150,000 Euro) * 0.5 = 125,000 Euro

When does the asset value method find the most application?

The asset value method is the most frequently used valuation method for owner-occupied real estate. The asset value method is used to determine the value of owner-occupied condominiums, single-family houses and two-family houses separately from the value of the associated share of the land. It is one of the most complicated procedures, because special circumstances, such as damage or the need for renovation, are also included in the determination of the asset value and reduce the value accordingly. The land value is determined using the standard land value table for the respective region.

Valuation for the sale of real estate

All important information about the valuation of real estate sales summarized for you: Valuing a property.

Income approach: Breakdown of market value & building income value

The capitalised earnings value method divides the property into the market value of the land and the building income value.

Land value interest = 7 percent * 100,000 euros = 7,000 euros

Building income value = 5,600 Euro * 12.50 (multiplier) = 70,000 Euro

This includes rental income, maintenance costs and costs for managing the land and building. Accordingly, the rental income less the management costs and the land value including its interest are compared.

• Capitalised earnings method

Comparative value method: Comparison of similar properties

The comparative value method compares your property with similar properties. It is used in particular for the sale of owner-occupied apartments and houses. The comparative value can also be determined for undeveloped land.

Price per square metre of the comparable property = 300,000 Euro / 100 sqm = 3,000 Euro per sqm

Purchase price of the property to be valued = 3,000 Euro * 200 sqm = 600,000 Euro

Only properties in similar locations and with a comparable layout are considered in the comparison. The properties included in the valuation should come from the immediate vicinity of the residential property. The comparative value method is considered to be particularly realistic. It is frequently used to determine the value of properties because the locations are relatively comparable from a regional point of view.

• Comparative value procedure

Value appraisal (costs)

Who prepares appraisals for real estate? What does a house appraiser cost? What does an appraiser for old buildings cost? Unless legal regulations require the appointment of an expert, a real estate appraisal will provide you with a realistic valuation of your property in the regional and national market. We provide timely and accurate valuations of land, residential and commercial properties.

However, if the valuation is to be presented in court, for example in the case of a divorce, experts must be consulted for a fee. The residential or rental property is inspected on site. As a rule, both a written and a digital copy of the appraisal are issued.

• Valuation report

Der Beitrag Asset value method: Apartment, house & apartment building – Real estate valuation erschien zuerst auf ℄ Real Estates.

Pension equalisation – what happens to the pension in the event of divorce

Pension equalisation only becomes an issue when you get divorced, because both partners want to be secure for their old age after the divorce. However, how is this pension equalisation distributed, who benefits from it and how fair is it really?

The facts – who benefits from pension equalisation?

People who work acquire pension entitlements for old age in different ways. While employees are usually compulsorily insured with the German pension insurance, civil servants are entitled to a civil servant pension and self-employed people ideally provide for their old age on their own responsibility.

In the event of divorce, the equalisation of p ensions ensures that the spouse benefiting from it is able to provide for his or her own retirement independently of the other partner. Originally, the legislator had the housewife marriage in mind with this claim, in which the wife looks after the joint children and therefore foregoes her own income and savings for old age. In the case of pension rights equalisation, the pension rights acquired during the marriage are therefore divided equally between the partners. However, this entitlement does not apply to non-married and non-marital partners, as in these relationships each person remains responsible for his or her own pension.

• Everyone who works acquires pension rights for old age
• In the event of a divorce, the provision for old age must be regulated for both partners, which is regulated by the pension equalisation scheme.

Which pension entitlements are included? – Pension & Co.

The figures make it clear how important pension equalisation is, because in 2011 more than 716,000 retired people benefited from pension equalisation and supplemented their pensions with an average of 210 euros per month by transferring the pension entitlements of their ex-partner. But which pension entitlements are included in the pension rights adjustment at all? The law stipulates that all pension benefits acquired by a spouse through employment during the marriage are included in the pension equalization. However, benefits that are of a compensatory nature, such as pensions from accident insurance or life insurance, are not eligible for equalisation.

• The pension belongs to the entitlements that are regulated within the framework of the pension rights adjustment.
• Not eligible for compensation are benefits that have a compensatory character

Avoiding pension rights adjustment – is this possible?

Pension equalisation is not always fair and is therefore not applied in certain cases. If the marriage lasts less than three years, if the equalisation value is less than 50 euros per month or if the pension difference is only about 25 euros per month or less, pension equalisation is not considered necessary.

However, if none of the above points apply, pension equalisation can also be prevented in another way. Anyone who has excluded pension equalisation in a notarised marriage contract avoids pension equalisation proceedings in the event of divorce. However, such an agreement can still be concluded during the divorce as long as the spouses are both financially secure for old age and agree to the agreement. However, a pension equalisation can also be avoided by combining it with the equalisation of gains pending on divorce. Here, for example, a property can be transferred for old-age provision, provided that the family court considers this agreement to be appropriate.

• Pension rights adjustment is not necessary in certain cases
• The pension equalisation can also be excluded by a notarised agreement.

Conclusion on pension equalisation – this is how important the regulation is for married couples

At first glance, the pension equalization is fair for both parties, but in practice it shows only problems with which the spouses have to struggle. It becomes particularly problematic for married couples who only divorce at an advanced age. Where both partners together were well provided for in old age, they often find themselves with only two poor households after the divorce. If a divorce is finalized at a young age, both parties still have the opportunity to supplement their pensions as they continue to work, while older couples often face financial ruin. So instead of a schematic division, it can often be more beneficial for older couples if one party keeps the pension rights and exchanges them for other assets, such as a property. So the legislation here is not entirely optimal, as it does not offer everyone the same opportunities and can be particularly difficult for older couples by necessity.

• The pension equalization actually regulates the provision in old age fairly, but does not take into account the disadvantage that some groups draw from it
• Older spouses in particular are not favoured by pension equalisation

The most important questions about pensions after divorce

When it comes to divorce and pensions, many questions arise. The equalization of pensions and the fair provision in old age for both parties is an important topic. To ensure that no questions remain unanswered for you, the experts at Lukinski answer all important questions on the subject of divorce and pensions.

What is the pension equalization in divorce?

The pension equalisation deals with all entitlements to a pension in old age acquired during the marriage. It is therefore about the pension and how it is divided between the spouses.

How fast is a divorce?

The length of a divorce depends first of all on whether the divorce is contested or amicable. Amicable divorces usually take between three and six months, while contested divorces can be delayed for up to a year.

What are the costs of divorce?

The cost of a divorce varies from case to case. The court determines much of the cost, which also depends on how many lawyers are needed and how long the divorce takes.

Who pays for the divorce?

Normally, the costs are offset against each other. This means that each party pays its own lawyer and half of the court costs incurred.

What is gain in marriage?

A gain describes an increase in assets that occurred during the marriage. At the end of the marriage, this must be calculated for the mutual equalisation of gains.

How long does it take to process the pension rights adjustment?

A divorce in which the pension equalization is omitted usually takes no longer than four months. Divorces where the pension equalisation is observed take between five and nine months.

Can the divorce be denied?

Divorce can be refused by the spouse in principle. However, this is not possible on a permanent basis, as a compulsory divorce can be decided by the court after three years at the latest.

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide

Der Beitrag Pension entitlement divorce: Company pension, remarriage and pension equalisation – is half gone? erschien zuerst auf ℄ Real Estates.