May 25, 2024

In this article, we will answer the question of what are the documents required for a housing loan. Housing loan applications are the type of loan that has the most complex process among loans. Compared to all other loans  , what are the documents required for a housing loan, which documents should be prepared,  more and the procurement time is longer.

Banks require many documents to guarantee loan repayment, especially since housing loans are high-value loans. Although many of these are related to the loan customer, documents are presented in the housing or house that is the subject of the loan.

Mortgage loans are among the high-risk loans as it is all over the world. Many regulations have been made regarding this in our country. According to the legislation, there are processes that banks must fulfill. These processes are common to almost all banks, at the same time all banks demand almost the same documents for housing loans.

What are the Documents Required for a Housing Loan?

With the rapid development of the housing sector, especially in big cities, house prices are at very high levels. Therefore, it has become quite difficult to buy a house without using a loan these days. On the other hand, due to the fact that the housing sector is an important step for the economy in our country, housing loan interest rates are at low levels.

When this is the case, banks offer very low interest rates for housing loans. Many details are reviewed in order to minimize the risk in housing loans offered by banks with low margins.

First of all, the person who wants to use the loan must be legally eligible to use the loan. However, the house subject to the loan should not have any problems and should meet the legal requirements.

Documents Required for Housing Loan

Loan application form containing the necessary information for a housing loan application. These forms will be provided by the bank branch you applied for, and you will be asked to fill in and sign them.

One of the documents such as identity card (must have TR ID number), driver’s license, passport photocopy.

Photocopy of bills such as two-month telephone, natural gas, electricity or water for the determination of residence.

Income certificate is among the main documents requested by banks when giving housing loans. The income certificate is the payroll for the employees, the bank statement for the retirees is the tax plate for the self-employed.

The income certificate is one of the factors that ensure the approval of the housing loan. The reason for this is that, as explained at the beginning of the article, it ensures that the loan will be repaid by the bank. If you have a high income level, your loan will be approved immediately depending on the amount.

Unfortunately, your mortgage application will not be approved if you cannot provide any proof of income. In this case, the bank may request a guarantor or real estate pledge from you.

Title deed of the house you want to buy. These may be construction servitude deed and construction permit, building occupancy permit or condominium deed.

Required Conditions for Getting a Housing Loan

Before applying for a loan, check if there are any mortgages or shareholders on the house you will buy. If there is a mortgage on the house, the loan cannot be used for this house.

If your purchase has not been completed yet, at least 80% of the house must be completed in order to be able to use a loan.

If the house to be purchased is detached, the land title along with the residence title must be provided at the time of application.

If the loan applicant is a company partner, the company’s trade registry gazette and documents showing the partnership of the company must be submitted.

Although this document is a report prepared after the loan application, let’s talk about it briefly. After the loan application, it is prepared through a housing appraiser that the bank has an agreement with. This report, which is prepared to determine the value of the house subject to the loan and to control the records on the title deed, determines the amount of loan you will use.

The loan amount you apply for is related to the value of the house revealed in the appraisal report. According to the current legislation, the housing loan cannot exceed 75% of the total value of a house. For example, for a house with an appraisal value of 100.000 TL, you can use a housing loan of 75.000 TL at the most. It is possible for this amount to decrease depending on your loan solvency, but you cannot use a higher amount even if you have the ability to pay.

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