Is a home loan possible without proof of income?
Pension statement as proof of income
Banks want to protect themselves against financial losses as well as possible when granting loans. Anyone who needs a home loan must therefore provide the bank with proof of income . Proof of income confirms that the applicant is in a permanent employment relationship, under which he regularly receives salary.
Credit institutions usually use the pension statement as proof of income. Due to their advanced age, seniors are often the hardest to get a home loan.
- For each applicant, the rule is that, in addition to proof of income, they usually also have to provide account statements for a certain period of time. For the bank, this not only reveals the applicant’s spending behavior, but also its reliability in repaying debts.
Need money and don’t have proof of income, e.g. B. students, start-ups or start-ups.
With this district variant, private donors not only get their money back, but also a previously set interest rate. However, you can only apply for a home loan from P2P providers if the amount is not too high for the project.
What information does the bank draw from the proof of income?
The bank can not only use the proof of income to find out how high the monthly income of a prospective customer is. It can also read how long the applicant has been employed in his company.
- Anyone applying for a home loan almost always has to provide proof of income for the past three months. In this way, the bank can find out whether the applicant has only worked for one company during this time or is changing from one company to the next.
Building finance will verify the evidence of the borrower’s income. Since this information alone is only of limited significance, the banks also require proof of creditworthiness, because the income must significantly exceed the expenditure for a contract.