Ideal Homes has in-house mortgage brokers who can help their clients with their financial needs. Currently, there are low interest rates of about 0.873%, with some clients receiving approvals for as low as 0.499%, making it a fantastic time to invest in Portugal. In addition to this, banks are lending up to 80% with a maximum term of 40 years. Some determining factors regarding qualification and rates for a Portuguese Mortgage are listed below. Banks consider two criteria when analyzing the mortgage file for approval: financial strength and property valuation.
The assessment of financial strength and property valuation is based on five factors that are as follows: 1. Income: A bank will require proof of the current earnings of an investor, such as salary income, dividend payments, investment income, pension income, and rental income. This information will help the lender ascertain if they can comfortably afford the monthly cost of their Portuguese mortgage. A bank will also consider the net income of each applicant confirmed by pay/pension slips, tax returns, and bank statements. 2. Existing debts: The lender will require confirmation through a credit report or loan/mortgage statement to analyze their monthly fixed commitments for existing liabilities such as mortgages, personal loans, and credit cards.
Moreover, 3. Employment history: The lender will require proof of their current employment in the form of an employer’s reference letter. If an investor is self-employed, a bank will require information about their company, confirmed by their accountant. 4. Credit history: A bank will require a credit report from the investor’s country of residence and carry out a check with the Bank of Portugal for any existing liabilities in the country. 5. Property valuation. A bank will commission an independent engineer to value the owner’s property. Ideal Homes Portugal will liaise with their appointed key holder and arrange a visit to the property with the designated engineer; the company will also arrange all necessary property documentation for the bank.
The company looks forward to helping guide the property buyers through the buying process and finding financial solutions to help them make their real estate investment in Portugal a reality.
About Ideal Homes Portugal:
It is a friendly and professional real estate company in the Algarve on hand to guide its clients through the process of buying their dream home in Portugal. The company is recognized as a licensed mortgage brokerage approved by the Bank of Portugal; their mortgage department works with all significant Portuguese banks to obtain the best possible financial solutions for investors’ property purchases.
Intending buyers can visit here for more information and fill in the form to purchase their dream home.