7 tips for getting your real estate financing approved

Find out how to increase your chances of having your real estate financing approved!

Buying your own home is the dream of many Brazilians, but having mortgage financing approved can seem difficult for those who have never taken out credit.

Furthermore, acquiring high-value assets, such as real estate, is a major challenge for most people, who are suffering from rising prices.

The solution, often, is to seek financing.

To help you, we have prepared some tips that can help you get your mortgage approved. Let's go!

What is real estate financing?

Real estate financing is a type of loan taken out with the specific purpose of purchasing a property.

In the case of financing, the bank in question, after approving the credit and signing a contract, will “acquire” the property for you.

In most cases, you will need to pay 20% of the property value as a down payment. The remaining balance will be divided into monthly installments.

This amount will be returned in several installments (with interest), which you will pay over the established period.

The construction company or property owner will receive the money upfront, paid by the institution, which will receive the down payment and, in the coming months and years, the installment payments.

Tips for getting mortgage approval

The approval of real estate financing is something that many Brazilians want, but at the same time, it brings a certain concern.

To help those who want to increase their chances of getting financing for a house or apartment, we have put together some valuable tips. Check them out:

1. Check your credit score using your CPF

The credit score is the result of the citizen's financial habits and relationship with the credit market.

Checking this information is essential to know if you have any overdue debt in your name, which is a factor that practically prevents the approval of real estate credit.

Financial institutions always check your credit score to decide whether or not to approve financing.

All Brazilians can get to know theirs for free Serasa Score, which, as we said, is the result of your relationship with the market. The score is available online and ranges from 0 to 1000 points.

2. Be part of the Positive Registry

The Positive Registry is a history of your credit behavior.

Well, everyone knows that financial issues can cause difficulties when someone requests a loan or financing service, right?

But what about positive habits? Do paid debts not count? And the answer is yes!

In the Positive Registry, all your good practices are analyzed, such as bills paid on time. Over time, you will build a history of good payment.

For this reason, opening a registration of this type helps to show that you are a good debt payer.

3. Have an account at the bank where you will request financing

Having an account at the bank chosen for financing is important to improve the relationship with the institution.

This makes it easier to obtain credit approval.

With the relationship already established, the bank will know exactly what your financial life is like and what your consumer profile is like, which will certainly bring several benefits to this process.

In fact, the longer you have been a customer of the bank, the longer the payment history you have with it.

This way, the institution will be able to assess your payment potential more easily.

4. Make more transactions in your bank account

Having an account at the chosen bank is important, but it is not enough!

For this reason, it is ideal for your earnings to be deposited into the account in question, whether it is your fixed salary or payment for services rendered such as autonomous.

Your account movement statement can be used to prove your income in recent months. 

This way, it is easier to prove the budget.

5. Three years of FGTS or saved money

Did you know that the balance of the Severance Pay Guarantee Fund (FGTS)  can be used to finance real estate:

However, it is only released to people who have three years of signed employment contracts throughout their lives.

You can use your FGTS in two ways for real estate financing.

The first is to pay the down payment on your own home. The second is to pay off the installments over the years and thus pay off the financing more quickly.

But if you haven't had a formal employment contract for three years, the ideal is to have some money saved in savings to use as the down payment for the property.

6. Gather all necessary documents

As you can imagine, buying your own home is a bureaucratic process.

This means that you need to prepare in advance and gather all the documents required in the financing proposal.

The list varies from institution to institution. However, there are some documents that are always requested:

• ID and CPF;

• Birth or marriage certificate;

• Proof of residence;

• Work permit;

• Income tax;

• Bank statement;

• Most recent pay slip.

These documents show lenders your income and ability to cover the costs involved in the financing.

Furthermore, they help to verify your identity, which is very important to avoid potential risks.

7. Regularize your company

This tip is for self-employed workers!

To make it easier to get credit approved, one tip is to become a MEI (Individual Microentrepreneur).

In addition, it is important to regularize your company's situation. It is worth checking its status with the Federal Revenue Service and whether there are any lawsuits or debts being collected.

Conclusion

With all these tips, it will become easier to get your mortgage approved.

And as a bonus, the open Positive Registration will help increase your score and thus, it will be easier to obtain other types of loans.