Perhaps you have heard from your Knab mortgage advisor that if you are employed, you need an employer’s declaration to get a mortgage. Do you have a temporary contract or probation? Then you can not do without a declaration of intent. What’s in it? Do you need them both? It is high time to answer these questions. And of course you will also find a handy model document here to download immediately.
What is an employer’s statement?
In an employer’s statement, in combination with a recent pay slip, your income is determined; it is therefore a representation of your income situation. The incomes on the statement and on the pay slip must match. The statement is completed by the employer and is always requested by the bank if you want to take out a mortgage.
When do you need an explanation?
You need him if you want to get a mortgage and you are in paid employment. Without this statement it is not possible to take out a mortgage. The bank then has no insight into your income and therefore (too) little certainty whether you can continue to pay your mortgage payments.
difference with the Declaration of Intent
The letter of intent is part of the employer’s statement. This gives the employer the intention to have you in permanent employment. Under the conditions that you continue to perform at the same level and the operating conditions remain the same. This part only needs to be filled in if you are in paid employment and do not have a permanent contract yet.
When do you need a letter of intent?
If you want to buy a house and you have a temporary contract or you are in your probation period, then you need the letter of intent. Without this statement, the bank will not include your temporary income in your mortgage application. Moreover, the letter of intent gives the bank the certainty that you, now and in the future, have an income with which you can continue to pay your monthly payments. You demonstrate this with this statement.
How do I get an employer and letter of intent?
Although some employers have one, we also have a recent model employer statement for you. You can download this statement free of charge and comply with the laws and regulations of 2019.
Please note: your Knab mortgage advisor always thoroughly checks the employer and intent declarations during the advisory interview . The lender also does this. Is it not filled in correctly and completely? Then you have to fill in a new declaration and that takes time. Not useful if you are in a hurry to get your mortgage around before the resolute conditions expire.
Therefore, always pay attention to the following:
The statement may only be completed by one person with your employer, with the same color ink.
In the case of a letter of intent (and therefore you have a temporary contract or are in your trial period): check the start and end date of your contract.
Make sure the statements are complete. Be sure, for example, that your company ‘s Chamber of Commerce number is filled in and provide a company stamp. Is there no company stamp? Then you need an additional statement that states this.