Italian Mortgage Application Process
Question: I am not an Italian resident. Can I get a mortgage on an Italian property?
Answer: Yes, non-Italian residents are allowed to get mortgages on Italian properties. Some Italian banks offer mortgage contracts to non-residents who want to buy or to refurbish an Italian property.
Over the past years bank policies for mortgages to non-Italians got stricter. However, several institutions are still happy to do business in this area. Typically they grant up to 50-60% of property value.
When planning to apply for a mortgage you shall consider the involved costs such as, for example, mortgage application fee, mortgage broker fee, mortgage taxes, survey, notary fees, insurance, and even interpreter fees if the applicant does not speak Italian.
Mortgage approval success chances, evaluation parameters, granted loan amount, timing and cost depend on several factors, such as applicant's nationality, domicile, personal conditions (e.g., job, financial status), property conditions. A mortgage broker might help you select the financial institution that best fits your specific case circumstances.
Once you file an Italian mortgage application to buy an Italian property, it takes eight to ten weeks to complete the process and receive the loaned amount. The Italian mortgage process involves as follows:
1) Personal solvency check: review of personal financial information and property information - a day or two;
2) Informal mortgage application: preparation, submission and pre-approval outcome - three days to two weeks;
3) Property compliance check: a surveyor appointed by the bank inspects the property and issues a compliance report for the bank - two to three weeks;
4) Title check: a notary appointed by the mortgage applicant reviews the property title and issues a title check report for the bank - one to two weeks;
5) Final Morgage Approval: subject to satisfactory solvency check, property compliance check and title check, the bank issues a formal mortgage approval - one to two weeks;
6) Funds release: After mortgage approval, bank and applicant agree on a signing date. In a mortgage loan asked for a property purchase, the mortgage applicant signs the purchase contract and the mortgage contract in front of the same notary within the same notary singing session and collects a banker's draft (cashier check, certified check) to pay the vendor (seller). Funds are released at singing or after title transfer registration on the Public Land Register (Register of Deeds), which might take two to four days. One to two weeks.
You can save on mortgage process time and costs if the owner already has a mortgage on the property. In particular, if you are happy with the terms of the existing mortgage you might be able to undertake it at no cost and no fee which is a very interesting option for certain buyers. By way of example of costs that can be saved, on a mortgage to borrow EUR 50,000 you might save approximately EUR 5,000 should you take over the existing mortgage.
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