Mortgage Loan on a Construction Plot Step by Step

We will try to tell you what documents to prepare before visiting the bank and applying for a mortgage on the building plot.

Mr. Pete, unfortunately, does not work in banks, which is a pity. With mortgages, whether for a flat, building plot or building a house is a problem. Documents, documents, documents and documents once more. Who went through the process of granting a mortgage in a bank and did not have to report a document? Nobody, it is good not to be a chosen one, or an exception that confirms the rule – You will have to report yet….

Land loan – what documents will be needed?

Land loan - what documents will be needed?

Let’s start with the standard documents to be armed before each visit to the bank. A visit related to credit agreements, whether ordinary cash or mortgage. Therefore, the following documents will be necessary:

  • documents confirming the identity, one is not enough, it is best to take two of them. Documents confirming identity are traditionally an ID card, possibly a passport, driver’s license, insurance card, pensioner’s card, permanent residence card

  • documents confirming the income obtained. Here we have a fairly wide range of documents, depending on the source of income we obtain:

  • if you work full time, you should have proof that would confirm employment and income,

  • Occasional work, unfortunately, the banks still treat slightly negligent people who do not have a permanent job and earn a contract, contract, and contract for a work based on a contract. Having such a contract sometimes puts us in a worse position as a full-time pensioner, pensioner or salary. It is not important that we earn more than a full-time employee, but irregularly and it is an excuse for the bank not to grant credit. Well, we will not, on this big divorce, because this is not the subject matter of the article. Nevertheless, it hurts us a bit.

  • own business here we have even more documents. The basis is a certificate of entry in the register, NIP, a certificate from the Social Insurance Institution and the Tax Office on non-admission. In addition, documents will be needed to determine the company’s revenues, ie depending on the form of taxation, it may be, for example, the Tax Book of Revenue and Expenditure. Some banks, instead of the aforementioned documents, allow to provide only an annual settlement (several years back), confirmed of course by US employees for complying with the original.

  • agricultural activity, as in the case of your own business, you will need certificates of not being against the fact that they will be from KRS and UG,

  • pensioner’s certificate of granting a retirement or disability pension, plus sections from the last payment (possibly an excerpt from the bank account to which the pension is paid),

  • income from rental or lease if we do not run a business and we obtain income from renting or renting it, it is worth showing it to the bank, for example to increase the creditworthiness. For this purpose, a lease or lease contract should be prepared, an extract from the land and mortgage register confirming the ownership title, tax declarations for rent / lease (PIT-28, PIT-36), a certificate of non-admission to the Tax Office for income tax from rent or lease.

The above-mentioned documents are generally required for every loan, mortgage or cash procedure. If we are regular customers of the bank where we are applying for a loan, we can count on a special reduced fare. We will get a cash loan based on a statement of income or ID card, if there were regular income from work on our account.

Credit step by step

Credit step by step

However, let’s move to the required documents when applying for a mortgage for the purchase of a building plot. In addition to the above documents confirming our identity and creditworthiness, you must also have:

  • preliminary contract, if we do not have a plot yet, but we already have some prospects and we agreed with the seller and we wrote a preliminary sale agreement, and thus a specific promise to buy a plot, then we make such a contract to the bank,

  • a copy from the land and mortgage register,

  • a notarial deed confirming ownership of the plot by its vendor,

  • an excerpt from the land registry,

  • an excerpt from the local spatial development plan, which will be a confirmation of the destination of the plot for development, or the conditions for building and land development. These documents are needed at the bank to determine the destination of the building plot. For us, it is also secured, because often the sellers of the plot sell it for the purpose of development. However, it may turn out that after the purchase of the plot is agricultural or is part of the landscape or nature protection, then we will not be able to afford something on it soon.

In addition, when going to a specific bank for a mortgage, it is a good idea to first go to the bank’s corporate website and download the loan application together with the attachments. Some banks have their own forms, for example, a certificate of income from the employer and such are required when applying for a loan.