Documents You Need to Buy a Home: Source of Funds, AML Checks and Completion Paperwork
Buying a home involves providing a range of documents to confirm your identity, finances and how you are funding your purchase, as well as checking important paperwork before completion.
Below, we answer common questions about the documents you may need, source of funds and anti-money laundering checks, proving your deposit and understanding your completion statement.
What is a completion statement and what should I check?
A completion statement is a final financial summary from your solicitor showing exactly what you need to pay to complete your purchase.
It sets out the money already paid, the funds still required and any final legal or tax-related costs. You should check it carefully before sending any remaining balance.
It includes:
- Purchase price
- Deposit already paid
- Mortgage funds
- Legal fees and disbursements
- Stamp Duty
Before completion, you should:
- Check all figures are accurate
- Confirm your deposit has been correctly applied
- Ensure there are no unexpected costs
Raising any issues early helps avoid delays on completion day.
What documents do I need to buy a house?
To apply for a mortgage, you’ll need documents that verify your identity, income and financial position.
Having these documents ready early can make the mortgage and conveyancing process smoother. It can also reduce delays after you reserve your new home.
Typically required:
- Payslips or tax returns
- Bank statements, usually three months
- Proof of deposit
- Photo ID and proof of address
Having these ready early can speed up your purchase and avoid delays.
What is "source of funds" and why do I need to prove it?
Source of funds refers to where your deposit money comes from and must be verified to meet legal and anti-money laundering requirements.
Your solicitor and lender need to confirm that the money being used for your purchase is legitimate and traceable. This is a standard part of the legal process when buying a home.
This ensures:
- Funds are legitimate
- The transaction complies with financial regulations
Common sources include:
- Savings
- Gifted deposits
- Equity from a property sale
Providing clear evidence early can help keep your purchase moving smoothly.
How do I prove my deposit for a house purchase?
You’ll need to provide clear evidence showing how your deposit has been accumulated or received.
This helps your lender and solicitor confirm that the funds are legitimate and traceable. The exact documents needed will depend on where your deposit has come from.
This may include:
- Bank statements showing savings over time
- Gifted deposit letters and donor evidence
- Solicitor confirmation if funds come from a sale
- ISA statement showing savings over time
Lenders and solicitors must be satisfied the funds are legitimate and traceable before your purchase can progress.
