Preparing your financial profile is a vital step before applying for a mortgage. A robust employment history holds significant importance when applying for a mortgage in Portugal. A proven track record of at least one year of professional experience with a specific company, or two years if self-employed, can certainly enhance your financial profile.
Income verification generally entails submitting evidence of income, such as payslips or bank statements, in addition to a passport copy and Portuguese tax identification number (NIF). Banks may also require additional documents based on individual circumstances, such as further proof of identity, tax documentation, and evidence of assets or existing debts. Let’s delve deeper into the specifics of employment history and property valuation.
Employment History and Income Verification
When applying for a mortgage in Portugal, it’s crucial to authenticate your employment history. This involves furnishing evidence of current employment, such as:
- an employer’s reference letter
- if self-employed, your most recent tax return
- six months of bank statements
- a copy of the company’s accounts.
Income forms considered for mortgage applications in Portugal encompass salary income, dividend payments, investment income, pension income, and rental income. Verification necessitates providing evidence like payslips, self-employed accounts, tax documents, personal bank statements for the previous three months, or bank statements displaying the recent 60 days of cash flow.
Property Valuation Essentials
Property valuation is a crucial component that the bank manages to assess the property. It holds substantial importance in the mortgage application process, as the valuation should ideally match or surpass the purchase price to guarantee the suitability of the loan amount in relation to the property’s value.
When selecting a property valuator in Portugal for a mortgage application, it is essential to consider their registration and regulation by the Portuguese authorities. The property valuation for mortgage purposes in Portugal encompasses various crucial factors, such as:
- The property’s overall condition
- Location
- Size
- Current market demand
- The borrower’s financial circumstances
The property valuation has a direct impact on borrowing limits for potential homeowners in Portugal. Non-residents can typically borrow between 65-75% of the property’s value or sale price, whichever is lower. On the other hand, fiscal residents have the option to borrow up to 90% of the sale price or valuation, opting for the higher amount.