Start with the financing
If a mortgage will form part of your purchase, exploring your financing options before becoming committed to a particular property can make the search considerably easier.
Understanding your likely borrowing position helps establish a realistic overall budget and means you can approach suitable properties with greater clarity.
What will a lender consider?
Portuguese lenders will assess your ability to repay the mortgage before deciding whether to lend and on what terms.
They may consider factors such as your income, employment or professional situation, existing financial commitments, age and the amount you intend to borrow.
Requirements vary between lenders and individual applications.
Documents
You should expect to provide documentation supporting your application. Depending on your circumstances and the lender, this may include identification, proof of income, bank statements, tax information and details of existing financial commitments.
Having the relevant documentation prepared can help the application progress more efficiently.
Deposit and your own funds
International buyers using mortgage finance will normally need to contribute part of the purchase price from their own funds.
The amount a lender is prepared to finance depends on the application, the property and the lender’s criteria. You should also allow separately for purchase taxes, legal costs and other transaction expenses.
The property valuation
As part of the mortgage process, the property will normally be professionally valued for the lender.
The valuation is important because the lender will consider the property’s assessed value when determining the financing available. If the valuation differs from the agreed purchase price, this can affect the amount you need to contribute yourself.
Allow time for the mortgage process
A financed purchase can require additional time for the application, approval, property valuation and final mortgage arrangements.
If you’re using finance, this should be taken into account when agreeing the timetable for the purchase, particularly when the CPCV and proposed completion date are being discussed.
Getting the right advice
I’m not a mortgage adviser, but I can connect you with experienced mortgage professionals who can discuss the options available to you and guide you through the application process.
Once your financing position is clearer, I can use that information alongside your property requirements to help focus the search appropriately.
Mortgage availability, lending criteria, interest rates and other terms vary between lenders and applicants and can change over time. This guide is general information only. Any financing decision should be based on advice and terms provided by an appropriately qualified mortgage or financial professional.