Applications succeed or stall on documentation. What to assemble, in what order, before anyone assesses you.
A financing application is an assessment of a file. Applicants who assemble that file deliberately, before applying, are assessed on their actual position rather than on whatever documentation happened to be available on the day.
Before stage one
Begin assembling several weeks before you intend to apply, because some documents take time to obtain and some issues take time to correct.
- A list of required documents obtained from at least one provider.
- Your credit record reviewed and any error identified.
- Income documentation covering the period providers require.
- Time allowed for corrections before applying.
Stage 1: Identity and residency documents
Assemble current identification and residency documentation, confirming nothing is close to expiry.
- Deliverable: Current documents with sufficient validity remaining.
- Owner: Applicant.
- Approval gate: Renewals completed before application rather than during it.
Stage 2: Income evidence
Gather employment confirmation, salary evidence and, for self-employment or additional income, the documentation that evidences it.
- Deliverable: Income documentation matching what you will state.
- Owner: Applicant with employer or accountant.
- Approval gate: Stated income is fully evidenced, since unevidenced income is generally excluded.
Stage 3: Banking history
Obtain statements for the required period and review them as an assessor would.
- Deliverable: Statements covering the required period.
- Owner: Applicant.
- Approval gate: Anything unusual in the statements can be explained before it is asked about.
Stage 4: Obligations and credit record
Review your credit record, correct errors, and document any obligation that has been settled but still appears.
- Deliverable: An accurate record with supporting evidence for anything corrected.
- Owner: Applicant.
- Approval gate: Corrections reflected before applying, which can take some weeks.
Stage 5: Property documentation
Where a property is identified, assemble its title, permits and any documentation the financier will require.
- Deliverable: Complete property documentation.
- Owner: Applicant with seller or adviser.
- Approval gate: Any documentary issue with the property identified before the application depends on it.
Stage 6: Submission
Submit a complete application rather than a partial one, since incomplete submissions consume assessment cycles.
- Deliverable: A complete application package.
- Owner: Applicant.
- Approval gate: Nothing outstanding at submission that you could have provided.
Handovers between stages
The gap that causes most delay is between submission and the provider's first request for additional information. Anticipating what will be asked, and providing it at the outset, converts weeks of exchanges into a single assessment.
How you know it is finished
The file is ready when every statement in the application is supported by a document in the package, and when you could explain anything unusual without being prompted.
If you are weighing a financing decision, Domira can review the offers, model the total cost and stress test the obligation with you before you sign anything.
Frequently Asked Questions
How far back do providers look at banking history?
Requirements vary by provider and product, so ask for the specific period at the outset. What is consistent is that the statements are read closely, so anything irregular is better explained proactively than in response to a query.
What if my income comes from several sources?
Document each source in the form the provider accepts, and expect some sources to be treated more conservatively than others. Applicants with varied income benefit most from preparing the file carefully, because the assessment depends heavily on what can be evidenced.
Can I apply while documents are being obtained?
You can, but incomplete applications tend to move slowly and can lapse. Given that some documents take weeks to obtain and corrections take longer still, beginning the assembly before you need it is the more effective approach.
Have a Property Question?
Domira can help you navigate property, financing and investment decisions in Saudi Arabia. Speak with our team for an initial consultation.
