What does it look like to apply to Bulgarian BANK for a mortgage?

Credit rating

• Prepare documents to prove your income, such as bank statements, income certificates, employment contracts, tax returns.
• Banks will check your credit history to assess your credit risk. It is important that your credit history is positive.

Property selection

• In many cases, you will be required to submit a preliminary contract for the purchase of the property, which sets out the terms of the purchase, including the price of the property.

Collection of required documents

• Identity document: Valid passport or ID card.
• Income documents: As above – bank statements, income certificates, employment contracts, tax returns.
• Real estate documents: Preliminary contract, technical documentation of the property, real estate appraisal (prepared by a licensed appraiser).
• Other documents: The bank may require additional documents, such as insurance policies, proof of no debts.

A visit to the bank

• Make an appointment with the bank to discuss your financial situation and credit needs. A credit counselor will help you understand the options available and the bank’s requirements.

Submission of an application

• Fill out the mortgage application form. This form contains detailed information about your financial situation, the property you intend to buy, and the terms of the loan you are applying for.
• Submit all required documents along with the application.

Analysis of the application by the bank

• The bank will analyze your creditworthiness and assess the value of the property. This process may include document verification, credit interviewing and risk analysis.

Credit decision

• Once the analysis is complete, the bank will issue a credit decision. It can be positive, negative or conditional (e.g., with additional requirements or collateral).
• If the decision is positive, the bank will provide you with a loan offer that specifies the terms of the loan, including the interest rate, loan term, monthly installments and any additional fees.

Signing of the loan agreement

• If you accept the loan offer, you will sign a loan agreement in the presence of a notary. This agreement details all the terms of the loan.
• In the case of a mortgage, it will be necessary to establish a mortgage on the property as security for the loan.

Withdrawal of funds

• Once the loan agreement is signed and the mortgage is established, the bank will proceed to disburse the funds. The funds will be transferred to the account of the seller of the property in accordance with the terms of the purchase and sale agreement.