Introduction
When you think about buying a house, the path seems full of uncertainty. However, home loan pre-approval appears as a compass, directing future homeowners through the real estate market with security and clarity.
What is Credit Pre-Approval?
It is a statement from the bank that estimates how much money can be lent to the buyer, based on a prior analysis of their financial situation. This is not a final commitment, but an important green light to move forward in the process.
Importance of Pre-Approval
Pre-approval is advantageous for several reasons:
Seizing good deals: When great opportunities arise, they disappear in a flash, credit pre-approval allows you to make a proposal safely and quickly.
Credibility: Demonstrates to sellers that you are serious and ready to act, differentiating you from other interested parties.
Financial Knowledge: Defines the budget for the purchase, allowing you to focus your search on properties that you can actually purchase.
How to Get Pre-Approval?
To start the process, you will need to provide the bank with:
- Valid identification document;
- Proof of address;
- Latest IRS declaration, with the respective assessment note;
- Bank statements from the last 3 months;
- Salary receipts for the last 3 months, if you are an employee;
- Green receipts from the last 6 months, if you are self-employed;
- Declaration of contractual relationship, issued by the employer;
- Declaration of commencement of activity, if applicable;
- Banco de Portugal Responsibility Map
Conclusion
Home loan pre-approval is not just an administrative step, it is a strong ally on your journey to buying a home. It not only gives you a solid foundation to make informed decisions but also strengthens your position in the real estate market. Starting the home buying process with this step could be the key to turning your dream of owning a home into a reality.