The timing of financing
When and if to apply for a mortgage is always an important factor in the buying process, this is even more the case when buying overseas.
When to apply for a mortgage is always an important factor in the buying process, this is even more the case when buying overseas. With European interest rates still relatively low, more and more people are exploring this opportunity as another positive reason to buy in Portugal. Receiving a mortgage approval can be a vital tool for a client to have before they enter into negotiations with a vendor as it provides the following advantages:
Security
You will have the security of knowing that you are in a position to complete on your monetary obligations towards the vendor.
Planning
You will be in a position to accurately budget for the total financial cost of any purchase that you undertake. Many clients have been either presumptuous or misinformed about the level of borrowing that they can undertake in Portugal.
Negotiations
You will be in a position to accurately budget for the total financial cost of any purchase that you undertake. Many clients have been either presumptuous or misinformed about the level of borrowing that they can undertake in Portugal.
Banking
In order to get a mortgage approval, you will normally at the same time be opening up a bank account in Portugal, this is an essential facility to have in place for a variety of reasons such as overseas transfers and setting up direct debits.
It is important to note that the process of getting mortgage approval will not cost you a single penny and the actual mortgage approval is valid for up to four months (depending on the lender) from the date of approval. It is only once a client decides to draw down upon the facility and an offer letter is generated that the bank charges will be activated.
Quinta Finance, February 2023