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The Secrets of House Loan: The step-by-step guide for beginners

Entering the world of housing credit can be an exciting journey, but also full of details and procedures to be followed. If you are considering embarking on this adventure, it is crucial to understand the steps necessary to ensure a smooth transition.

The first step is to contact a credit intermediary. This will help you assess your financial situation, calculating your income, monthly expenses and checking your credit history.

Once you have a clear idea of your financial situation, the intermediary will seek pre-approval for your home loan. This pre-approval will give you an idea of the amount you can borrow, allowing you to establish a budget for purchasing your dream home.

It will then present you with housing loan proposals from different banks and financial institutions. Analyze interest rates, repayment periods and other conditions to find the best option.

After choosing the bank or financial institution, it is time to submit the loan application. This process involves filling out forms, providing financial documents and detailed information about the property you wish to purchase. Make sure you follow all instructions carefully and provide accurate information to avoid delays in the process.

Once the application has been submitted, the bank will carry out an assessment of the property to determine its market value. This assessment is crucial for calculating the loan amount and the loan-to-value (LTV) ratio, which is the percentage of the loan value in relation to the value of the property. The higher the LTV, the greater the risk for the bank, so it is important to understand how this value affects the conditions of your loan.

After the loan is approved, the bank will issue a formal approval and schedule a meeting to sign the home loan contract. At this stage, make sure you carefully review all the terms and conditions of the contract before signing.

By following these steps with patience and diligence, you will be one step closer to realizing your dream of owning your own home. Understanding the home loan process is essential to ensuring a smooth and successful transaction, allowing you to fully enjoy your new home.

Go Crédito

GO Crédito is a company specialized in credit intermediation, authorized and supervised by the Bank of Portugal. We provide credit intermediation and consultancy services quickly and effectively.