Buying a house with a mortgage: What documents will the bank ask me for?

What documents to submit to the bank for a home loan application?

Identification of the holders.

First, it is necessary to identify the holders who will propose to contract the credit.  

Identification can come from documents such as Citizen Card, ID Card, and/or Passport.  

Tax Identification Number (taxpayer/NIF)

Afterwards, it will be necessary to present your Tax Identification Number (NIF), also known as the taxpayer number.

If you do not have this number, you must provide a document proving the same.  

Last IRS statement

It is also necessary to deliver to the bank the last IRS statement of the holders applying for credit, as well as the tax settlement note.

You can obtain both documents in your Portal das Finanças account with the Tax Authority.

Three last payslips

Regarding the applicants, the bank still needs the three pay slips.

The aim is for the bank to verify the amount earned in net monthly income of future credit holders.

Three last monthly bank statements

Just like the payslips, the bank also asks for the three most recent monthly bank statements from the checking accounts.  

This is to verify the client's solvency through their regular expenses debited to their account. To do this, the bank analyzes expenses on food, electricity, communications, insurance, and also movements that may seem suspicious (for example, if money is withdrawn from casino ATMs, it may indicate gambling addiction, representing a risk).  

Credit responsibilities map

This is a document that shows information about the current and past year's credits of a client.  

The objective is for the bank to assess whether the consumer has had financial occurrences: debts or default on credit installments.

Employer's statement regarding the contract relationship.

Finally, it is necessary to submit a statement from the employer in which the proposed credit holders work, with the nature of the contract links.

That is, the bank entity needs to know if the contracts are for a fixed term or indefinite. It is also a risk analysis factor, because if the contract is indefinite, that is, effective, the bank considers there to be less risk.

In addition, you should note that if there are guarantors, they must submit the exact same documents to the bank.

If you are going through the process of buying a house with a home loan, you can get free help. With a credit intermediary like those at Poupança no Minuto, it is easier to gather all the paperwork so that no documents are missing.

How to choose the bank where to apply for a home loan?

The secret to know which bank to choose, where to hire your mortgage, is to request proposals from several.

Only by analyzing the different conditions presented in the market will you know which proposal is most advantageous for you.

Therefore, when evaluating which bank to choose, refer to the European Standardised Information Sheet (ESIS) - a document provided by each bank detailing all the credit conditions. With this sheet, you can compare which conditions are most favorable to you: take into account savings, but also your preferences.

For example, it is probably possible to save money with a cheaper life insurance, but analyze which coverages are most suitable for your family.

Another factor to consider is that, as a rule, banks suggest that you subscribe to the required insurance policies (life and multi-risk) with the associated insurer. But know that, by law, it is not mandatory, so you can contract the insurance with an outside entity. In other words, this is always a question that can be negotiated with the banks at the time of the proposals.

To choose the right bank and mortgage credit, you can always turn to the help of brokers. The credit intermediaries Poupança no Minuto are with you from the beginning to the end of the process, taking care of all the bureaucracy and being available to help you with any questions.