What is the final approval for a mortgage?

Obtaining a mortgage loan is a complex process that involves many steps, bank departments and people who ensure that the conditions for granting are met.

The final stage of the process, known as “final approval”, is the moment when the bank or financial institution confirms that all conditions are fulfilled and the credit can be granted. This stage is crucial so that the applicant can go further with the purchase of the desired property.

This article explains in detail the process of final approval of a mortgage loan, the factors that influence the approval and what we need to do to ensure the success of the credit application.

What is the final approval for a mortgage?

The final approval for the mortgage loan represents the definitive confirmation that the bank is willing to grant the requested mortgage loan. This stage comes after all the necessary documents have been submitted, verified and validated. The final step is practically before the funds are transferred for the purchase of the building.

Until this point, the bank analyzes in detail the financial situation of the applicant, the value of the property to be purchased, as well as the documents related to the property.

Steps of the final approval process for IPTECAR credit

The process begins with completing a credit request and providing preliminary documents, such as identity documents, proof of income and details of the desired property.

1) Submitting the credit application

The process begins with completing a credit request and providing preliminary documents, such as identity documents, proof of income and details of the desired property.

2) Pre-approval

The pre-approval is an intermediate stage in which the bank analyzes the request to determine if the applicant is financially eligible. This stage does not yet guarantee the granting of credit.

3) property assessment

The bank requests the assessment of the property to determine its value. The evaluation is carried out by an authorized evaluator.

4) checking the documentation

The documents provided by the applicant are analyzed in detail to confirm their correctness and authenticity.

5) conditional approval

In some cases, the bank issues a conditional approval, which specifies certain additional requirements that must be fulfilled before the final approval.

6) final decision

After fulfilling all the conditions, the bank issues the final approval, confirming that the credit is granted.

7) Signing the Credit Contract

After the final approval, the credit agreement is signed in front of a public notary.

8) Transfer of funds

The last step is the transfer of funds to the seller or the real estate developer, thus completing the purchase.

Documents Required for Final Approval for Mortgage Credit

In order to obtain the final approval, the bank requests a series of documents including:

Personal documents

– the identity document;

– the marriage certificate (if applicable);

– documents attesting the name changes (if applicable).

Proof of income

– The main evidence used by the banks is the verification at ANAF. However, banks may still request additional documents:

-salary butterflies (the last 3-6 months);

– income certificate from the employer;

– tax statements (for people who carry out independent activities).

Property documents

– land book extract;

– Plan cadastral;

– urbanism certificate (for new or under construction properties);

?

Other documents

– property assessment;

– additional approvals or approvals, if necessary.