Application process Italy
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 submitted first in consultation with our Italian partner.
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.
Mortgage & Abroad creates a comprehensive cover letter explaining all the elements and translating them so that everything is 100% clear to the Italian 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, applying for a mortgage with another Italian bank will follow.
Once the bank’s credit committee has given an in-principle approval on the mortgage application, the appraisal will be launched. Our Italian partner directs the valuation.
When the risk committee of the respective bank has given its approval and also the appraisal 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 Mortgage & Abroad and the Italian partner, a bank account in Italy is opened and insurance is arranged.
The processing time for a mortgage application in Italy varies from bank to bank and from path to path. The bureaucracy and mountain of legal regulations in Italy is notorious which means that the processing time of a mortgage application can sometimes be several months. 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 as much as 3 to 4 months before there is a full agreement.
There are always (sworn) translations of Dutch documents involved when applying for a mortgage in Italy. The expected cost of this is €500 to €1,000. These include pay slips, tax assessments or other documents that need to be translated. The goal is always to minimize the translations required.
