The first step in the Mortgage process
Get Pre-Approved
The first step in taking a home loan for a property in Israel, is obtaining a letter of pre approval. Pre-approval letters are prepared even before you've picked out your home, based on what you can afford. With a Pre-approval letter in hand, buyers know exactly how much they can borrow -- and therefore how much house they can afford. This puts the buyer in a stronger position to make an offer, negotiate and close on a property. Over the years we have seen many people manage to secure a property, while the other potential buyers are rushing to see if they can get a loan from a bank. Getting pre-approved gives you the time to find the best mortgage deal. Pre-approvals are valid for 3 months and can be easily extended if you do not find a property immediately. If you are starting to look at buying a home, the first step should always be to get pre-approved for a loan.
Open an Israeli Bank Account
Its a good idea to open an Israeli bank account as early as possible and make sure to deposit money in the account. Most Israeli banks will want to see 3 months of your bank statements. Keep your account in good standing, with a positive balance and make regular deposits. Even if you have an income abroad, and cash checks at a money changer, depositing the funds into your shekel account for a few months prior to making an application, can go a long way to helping you with a mortgage approval. Make sure you do not bounce any checks or have any returned debit payments in your account. One bounced check can cause a lot of problems.
This information was prepared by Avner Buntman with Mortgage Israel. If you have a mortgage question for Avner or would like to get pre-approved for a Mortgage in Israel, write to us at mortgages@buypropertyinisrael.com
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