After housing loan approval, there may still be costs related to property valuation, taxes, deed or formalization, records, bank commissions, insurance, and other operation charges.

The value depends on the property, credit, buyer's situation, and institution's conditions.

Does approval mean you no longer need money?

No. This is one of the most common mistakes for first-time home buyers. The bank may approve a loan to finance part or, in certain specific situations, a very high percentage of the purchase value. This does not mean all costs associated with the purchase are included in the loan.

It is necessary to separate the amount allocated for the house purchase from the other operation costs.

Taxes

Buying a property may involve taxes, namely IMT and Stamp Duty, although there are exemption or tax benefit situations.

The value depends on the property price, location, purpose, buyer's characteristics, and current tax rules.

Therefore, these costs must be calculated before signing the final contract.

2. Writing and records

Formalizing the purchase and credit may involve costs related to deeds, records, and other necessary acts to finalize the transaction.

The value depends on the procedure used and the specific situation.

It is important to confirm in advance which costs are included in the process.

3. Property evaluation

Bank evaluation is an important step in the credit process.

Even after the operation is approved, the process may involve costs related to the evaluation.

The Bank of Portugal foresees specific rules for the evaluation and availability of the respective report to the client.

4. Bank fees

Credit may involve fees related to certain operations.

The conditions must be checked in the institution's documentation and pricing.

It is important not to assume that two proposals with the same payment have exactly the same costs.

5. Life insurance

When required by the bank, the life insurance associated with the housing loan represents an additional cost.

The prize depends on several factors, including age, insured capital, and policy features.

The bank must present information related to insurance and associated costs in the contracting process.

6. Multi-risk insurance

Home multi-risk insurance may also be required within the financing, particularly to protect the property against certain risks.

As with life insurance, it is important to review coverage, exclusions, and price.

Initial entry

This is one of the most important costs.

For a loan intended for own and permanent housing, the financing should not, in general, exceed 90% of the lower of the purchase price or the appraisal value.

Thus, in many cases, the buyer will have to secure a part of the acquisition value with own funds.

There are specific regimes that can allow different funding percentages, so each case must be analyzed individually.

How much money should I have available?

There is no single value. Imagine a house worth 250,000 euros. If the loan corresponds to 90% of the value considered for the credit, there may be a need for 25,000 euros in own capital just to complete the purchase price.

That amount may include taxes, registration fees, insurance, and other expenses. Therefore, before making an offer on a house, it is important to calculate the total cost of the transaction.