Interested in the process of becoming home owner ? Below you will find the steps necessary with relevant details per step in the process.
1) Define Maximum Loan to Income
The amount you can possibly borrow for a mortgage loan depends on your income, residential status and – if applicable – your financial commitments. Using a salary slip a/o employer statement enables us to calculate maximum mortgage loan to income.
2) Looking for your dreamhouse
Make your shortlist of your requirements (number of sq. meters, nr. of rooms, energy label(*), School / University options. We can arrange a meeting with a NVM real estate agent a/o you can check Funda in order to pre assess your options.
3) Negociate price and conditions
If you have made the winning bid, the sellers real estate agent will provide you with a purchase agreement. Please notice that resolutive conditions (of getting a loan, a/o require technical inspection) are essential to discuss with your (purchase) real estate agent / financial advisor prior to signing the contract.
Overbidding and extra costs above 100% market value are to be funded from own private assets. After having signed the contract (purchaser signs as last party) there is a 3 days cooling off period in which you can cancel the contract (by email a.o written statement) without having to state a reason.
After expiry of the 3 days cooling off period you can only terminate the purchase contract if a successfull appeal can be made to the resolutive conditions (bank statement including written rejection of your loan application).
4) Interest offer
To get a loan we will apply for an interest offer. An interest offer is only to fixate the interest level , it is not a binding – unconditional – loan offer from the bank. Also the expiry date is stated in the interest offer.
5) Document gathering & Binding offer
After having received the interest offer you will have to deliver / upload all required docs such as;
- employer statement a/o UWV verzekeringsbericht
- salary slips regular (3, recent)
- copy passport (photopage AND adjacent page) of all applicants
- if applicable, resident permit (front AND backside) of all applicants
- valuation report (market value) or desk top valuation (if accepted)
- purchase agreement signed by all parties concerned
- Recent bank statement in your name with proof of sufficient assets / savings
- intake form (bank of application, if you are a new client to that bank)
- Letter of assignment, intake form mortgage loan intermediair and questionnaire
After all docs have been received, assessed and approved by the bank you will receive a binding offer (= irrevocable loan offer).
6) Plan a meeting with the notary office
The bank will send payment instructions to the notary office and the notary office will ask the bank to transfer the amount of the loan. You will have to transfer the amount of private assets agreed upon in the finance setup yourself timely to the notary office (so that is in the notarys account before date of transfer of ownership).
7) Transfer of ownership and registering the mortgage loan
At the notary office the notary will check your identity (do not forget to take your passport with you!). The deeds are often read to you in dutch language so if you do not master the language please arrange a sworn translator in your language or have the notary arrange one. The moment the deeds are signed you are Owner of your new home (and the mortgage loan)! Congratulations !
8) Owner of your new home !
Do you need more information ? In your yearly tax statement you will have to inform the tax authorities about your new home and new mortgage loan. Some one off costs you had to make in order to get the loan are often subject to tax relief if you are taxed in The Netherlands. You can ask the tax authorities for a “voorlopige teruggave” (preliminary monthly refund) meaning that instead of getting tax money back in one installment, the refund is spread over monthly installments. If your preliminary monthly refund is too high, you will be required to payback the surplus to the tax authorities if the yearly tax statement has been submitted by you. If desired we can fill in your tax statement for you.
