Application process Belgium

Application process

There is only one chance to make a first impression at a bank: as far as we are concerned, it should be overwhelmingly good. After choosing a particular route toward realizing the desired mortgage loan (see also “preparation”), the application process begins. Five stages can be distinguished in the application process: 1. preliminary application 2. file, 3. submit, 4. monitoring and adjusting, 5. conclusion.

To verify that an application is indeed – in principle – feasible, a preliminary application is often first submitted to a Belgian bank.

A well-documented application is essential for a successful application. Unclear or gaps in documentation create the perception of additional risk on the part of the bank. Together, the documentation is completed to the point where all essential elements are substantiated.

Hypotheek & Buitenland creates an extensive cover letter explaining all the elements and translating them so that everything is 100% clear to the Belgian bank. The application is completed with the bank’s application form after which it is submitted.

Once submitted, additional questions or requests for additional documents sometimes follow. Ambiguities are clarified and additional substantiation in the form of documents is provided. Where necessary, if the situation calls for it, the application will be adjusted. If an application is unexpectedly rejected then an attempt will be made to change the bank’s mind by convincing the bank they are wrong. Should that fail, consultation and, if possible, application for a mortgage with another Belgian bank will follow.

When the risk or credit committee of the relevant bank has given its approval and the appraisal also shows a sufficient value, the bank will give its final approval and send the credit offer and all legally required documentation. These documents contain all the details of the mortgage being offered (the formal loan offer) and also list the risks, warnings and obligations associated with the mortgage (standard information document). After observing the legally required reflection period, the loan offer can be accepted and the mortgage can be formalized and the purchase completed at the notary. If desired, with the help of Hypotheek & Buitenland and the Belgian bank, a bank account in Belgium can be opened and the necessary insurances can be arranged.

The processing time for a mortgage application in Belgium varies from bank to bank and from process to process. Counting from the time the fully documented mortgage application is submitted, with some banks you will know where you stand after a few weeks. With other banks, it takes up to 2 months to get a full agreement.

Once the bank’s credit committee has given an in-principle approval on the mortgage application, the appraisal (valuation) will be launched. The estimation should be self-initiated. Banks all use their own list of estimators whose estimates are accepted.

There are no translations of Dutch-language documents involved when applying for a mortgage in Belgium.