When to apply for a mortgage is always an important factor in the buying process. This is even more the case when buying overseas.
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 – It is often the case that a vendor may be prepared to negotiate a better deal with you if he is confident that the purchaser has the finances to complete the transaction in a relatively short space of time.
• 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 six 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.
If you are thinking about applying for a new mortgage or you are interested in information about funds transfer or property taxes it is vitally important to always check the qualifications of your broker in Portugal to ensure that you receive the highest level of professional assistance and care that is possible.
This article has been submitted by Winkworth Portugal.
For more information on Portuguese financing options, currency transfers or property taxes, please contact [email protected] or telephone +351 289 355 964.
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