Financial aspects of buying your first home

Gather your financial documents in time to avoid delays in your mortgage application
One of the most underrated steps when buying your first home is gathering the right financial documents on time. Yet this is crucial: an incomplete or delayed mortgage application could cause you to miss out on your dream home, especially in a competitive market.

Below is an overview of the most important documents you need to prepare as a starter:

1. Pay slips (usually from the last 3 months)
These show your income and are essential to determine your borrowing capacity. If you are working on a temporary contract, mortgage lenders often ask for additional securities, such as a letter of intent from your employer.

2. Employer statement
An official document that your employer fills in. This includes what kind of contract you have (permanent or temporary), your gross annual income, whether there are any bonuses, and whether the employer intends to continue your employment.

3. Last year's annual statement
The annual statement summarises your total income and taxes withheld in the previous year. It is often requested as a check on declared income.

4. Overview study debt (DUO)
A study debt affects how much you can borrow at most. Most lenders look at your current monthly burden at DUO, not at the original amount. You can download this overview yourself via duo.nl.

5. Bank statements (3 months)
This allows the mortgage lender to check your spending pattern and whether you have sufficient savings for additional costs such as notary, valuation or estate agent.

6. BKR registrations
Do you have loans, a credit card or a private lease contract? If so, these are registered with the Bureau Krediet Registratie (BKR). Request a free inspection via mijnBKR.nl and check for errors. A registration need not be a problem, but it can reduce your borrowing capacity.

7. ID proof
Make sure you have a valid and legible copy of your passport or identity card, including a signature and without shielded information.

Extra tip: create a digital mortgage folder
Put all your documents conveniently in a folder (e.g. in Google Drive or Dropbox) and update it as soon as there is new information. This way, you can move quickly as soon as you have a property in mind and start your mortgage application right away.