You must have good credit before you apply for a mortgage. The process How to get a mortgage in Portugal is long and complicated. Although you will need to provide lots of information and complete many forms, it is possible to make the process simpler if you are prepared. First, calculate your income and debt. If you are employed, you will need to provide your basic salary and any other income sources. Self-employed individuals will need to provide 1099s, profit & loss statements and bank statements. You will also need to know your monthly expenses.
Once you have established your budget and credit history, you can apply for a mortgage. Portugal has a maximum mortgage amount of 50% of the value of the property. Therefore, you will need to deposit 30% of that sale price. Non-residents will need to deposit 60 to 70% of the purchase price. You will need the same documents as a Portuguese resident if you are paying taxes in Portugal. Experian, Equifax and TransUnion will provide you with a free credit report.
Once you have chosen the property that you want, you will need to find a mortgage that suits your needs. Portugal offers many mortgage options. This means that you can choose the one that suits your financial situation best. The first step is to contact a bank or a mortgage broker. They'll be able to offer you a no-obligation estimate, as well as a preliminary analysis.
Once you've decided on a mortgage, you'll have to transfer funds to the appropriate account. Once you've provided the funds, your lender will start the application process. Once the mortgage process is completed, you will know the completion date. Finally, you'll have to sign the mortgage deeds in front of a Portuguese Notary. You will also need to pay all taxes and fees. The typical fees for a regular mortgage cost EUR300 plus tax. Banks will reimburse these costs once the mortgage process is completed.
The process of applying for a mortgage in Portugal is simple. You have to meet certain requirements based on the property you wish to buy. You should also make sure that you've discussed the property's location and intended use with your broker. Although the mortgage application process is lengthy, it's well worth it. Your broker can assist you with all paperwork if you are buying property in Portugal.
The process for applying for a loan is the same as in the UK. To apply for a mortgage, you will need to meet with a representative from a Portuguese bank if you are not a Portuguese citizen. It will include several steps. You'll need to provide certain documents, such as your passport and income, as proof of your Portuguese citizenship. You will need to provide the documents and a credit report as part of the process to obtain a mortgage.