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- 6 min read
Mortgage Application for Buying a Home: Key Steps and Timelines to Know
Careful planning of a mortgage (even a joint one) is the key to turning a purchase project into a solid, problem-free transaction. Knowing in advance the stages, documents, timelines, and potential obstacles allows you to move with confidence and reach the final deed within the expected timeframe. This guide, designed for those seriously considering buying a home, provides a complete overview of the process, with practical advice, examples, and actionable tips.
Table of Content
Why Proper Planning Matters in a Mortgage Application
First Step: Assessing Your Financial Situation
Second Step: Submitting the Mortgage Application
Third Step: The Bank’s Evaluation Process
Fourth Step: Property Appraisal
Fifth Step: Final Approval and Mortgage Disbursement
How Long Does It Take to Get a Mortgage?
Why Rely on Engel & Völkers
Why Proper Planning Matters in a Mortgage Application
Applying for a mortgage is not a single act but a process that involves income checks, document reviews, and technical evaluations of the property. Proper planning means:
Knowing the timelines: each phase has an average duration; understanding them helps coordinate the purchase offer, deposit, and final deed.Reducing delays: complete documentation speeds up the approval process.Increasing approval chances: presenting a consistent financial profile (income, liabilities, job stability) and a request aligned with banking parameters (e.g., installment-to-income ratio, LTV) makes the application more solid.
E&V Tip: request a preliminary income assessment or pre-approval before making an offer subject to a mortgage. This will help you define a realistic budget and negotiate with greater credibility.
First Step: Assessing Your Financial Situation
This is the foundation of the entire process. The goal is to verify the sustainability of the monthly payment and ensure that the budget is consistent with the property price.
Key Documents and Requirements
Identity document and tax code.
Certificate of family status and residence (if required).
Proof of income: last 2–3 payslips and CUD/Certificazione Unica for employees; last 2 tax returns (Mod. Redditi/730) and F24 for self-employed or freelancers.
Debt situation: any loans, revolving credit cards, salary-backed loans.
Bank statements from the last 3–6 months (to verify inflows/outflows and correct use of credit lines).
Calculating Repayment Capacity
Installment-to-income ratio: as a rule of thumb, the monthly payment should not exceed 30–35% of the household’s net income.
LTV (Loan-to-Value): the financed share compared to the purchase price/appraised value. On average, banks finance up to 80% (sometimes more with guarantees or specific products).
Expense fund: consider deposit, taxes, notary, moving, and any renovation work.
Example: Household net income €3,200/month → sustainable payment range €950–1,100/month. With an LTV of 80% and a 20% down payment, you can determine the property price bracket consistent with your profile.
Second Step: Submitting the Mortgage Application
Once the budget is defined, the application is completed, and the documentation is submitted. At this stage, you also choose the type of interest rate:
Fixed rate: constant and predictable installments, suitable for those who prefer long-term cost certainty.
Variable rate: installments indexed to the market (they may rise or fall). This can be attractive if you expect a short-to-medium time horizon or have financial flexibility.
Variants: capped variable, mixed, renegotiable: options to evaluate together with your advisor.
Property documents (if already identified): purchase offer/preliminary agreement, floor plans, land registry extracts, and deed of origin (the bank will use them in the next phases).
Average timeline: 3–7 days to register the application and move to the evaluation stage, provided all documents are complete.
Third Step: The Bank’s Evaluation Process
The bank begins the income assessment process, analyzing job stability, income continuity, credit history (CRIF/Credit Bureau), existing financial commitments, and the consistency between the requested amount and repayment capacity.
What the Bank Evaluates
Type of employment contract (permanent, fixed-term, self-employed with track record).
Employment seniority and income stability.
Account activity and any recurring overdrafts.
Overall debt level and punctuality of payments.
Outcome
Pre-approval of income (sometimes referred to simply as “income approval”): allows the process to move forward to the property appraisal.
Requests for additional documents: the bank may ask for further documentation or clarifications.
Average timeline: 2–4 weeks. This may be extended if documents are incomplete or the applicant’s profile is complex.
Fourth Step: Property Appraisal
The bank appoints an appraiser to verify the property’s value, compliance with planning and cadastral regulations, and the absence of restrictive encumbrances. The appraisal establishes the basis for calculating the LTV and may influence the amount that can be financed.
Why It’s Necessary
Confirms that the property exists, is compliant, and has a value consistent with the loan request.
Highlights any critical issues (building code violations, discrepancies, pre-existing mortgages) that must be resolved before the final deed.
Impact on the Loan Amount
If the appraised value is lower than the purchase price, the LTV is calculated on the lower figure, reducing the loan amount granted.
Average Timeline: appointment within 5–10 days of request; report delivered within 3–7 business days.
E&V Tip: Before starting the appraisal, check with the seller for floor plans, compliance certificates, and registry records. Identifying and resolving issues in advance helps avoid delays and last-minute renegotiations of the price.
Fifth Step: Final Approval and Mortgage Disbursement
Once the appraisal is completed, the bank issues the final approval (income + technical). This is followed by the preparation of the mortgage deed and the scheduling of the notarial signing.
Average Timelines
Final approval: 3–10 days after the appraisal (unless additional documents are required).
Disbursement: usually takes place at the notarial signing (sometimes deferred in cases with special conditions).
What Happens at the Notarial Signing
The sale deed and the mortgage deed are signed.
The bank disburses the funds (checks or wire transfer) according to the agreed arrangements, and you’re ready to complete the home purchase.
How Long Does It Take to Get a Mortgage?
Under optimal conditions, it takes about 6–8 weeks from the start of the application to the disbursement. A more cautious estimate is 8–12 weeks, especially during peak periods or for more complex profiles.
Factors That Speed Up the Process
Complete documentation from the very beginning.
Preliminary income assessment and properties that are compliant with planning/cadastral regulations.
Dedicated channels and smooth coordination between the bank, appraiser, seller, and notary.
Factors That Slow It Down
Income inconsistencies, negative records in the credit bureau, or undeclared credit lines.
Cadastral/planning discrepancies, existing mortgages, or unknown restrictions.
Peak periods (year-end, quarter closings) and fully booked appraisers/notaries.
If Something Goes Wrong: ask the bank for a reassessment with additional documents, consider alternative institutions, or adjust the amount/duration. With Engel & Völkers, we coordinate timelines and protective clauses to safeguard deposits and contractual deadlines.
Why Rely on Engel & Völkers
Relying on Engel & Völkers means having a partner who coordinates the entire process: from choosing the property to preparing the documentation, all the way to managing communication with the bank, appraiser, and notary.
Document consultancy: detailed checklists and preliminary review of property documents.
Network of professionals: trusted credit consultants and notaries to reduce delays and uncertainties.
Ongoing guidance: we align deadlines between approval, notarial signing, and moving logistics, avoiding unnecessary setbacks.
FAQ on Applying for a Mortgage to Buy a Home
On average 6–8 weeks; with complex profiles or incomplete documentation, it can take 8–12.
ID, tax code, proof of income (payslips/Certificazione Unica or tax returns), bank statements, and property documents (title deed, floor plans, registry extracts) if already identified.
It’s the ratio between the mortgage and the appraised value. A lower LTV reduces the bank’s risk and can lead to better conditions.
You can request a preliminary income assessment to define your budget; however, final approval always requires an appraisal of the property.
It depends on your time horizon, risk appetite, and repayment flexibility: fixed offers stability, variable follows market rates. Hybrid options may also be worth considering.
Yes. If the appraisal is lower than the purchase price, the bank calculates the LTV on the lower value.
The bank may take longer to process the application or may reject it. It’s advisable to settle outstanding issues and provide proof of regular payments.
Yes, with complete documentation, quick responses to requests for additional information, and proper coordination between the bank, appraiser, seller, and notary.
Normally at the notarial signing, at the same time as the contract is signed. In some cases, it may be deferred.
With a detailed documentation checklist, preliminary property verification, coordination with the bank/appraiser/notary, and deadline management all the way through to the signing.