Why a Mortgage Pre-Approval in Portugal Means Almost Nothing — And What Really Matters.

If you’ve been house-hunting in Portugal, you’ve probably heard the term “mortgage pre-approval.”Banks love to hand them out. Agents tell you to get one before making an offer. But here’s the truth most people don’t realise: A mortgage pre-approval in Portugal is not a guarantee. In fact, it can often give buyers a false sense of security — and lead to major frustration down the line.

Let’s uncover why that is, what’s actually behind a “pre-approval,” and what you really need to secure before celebrating your mortgage success.

Don't get lost staring out the window.

What Banks Don’t Tell You About “Pre-Approval”

When a Portuguese bank gives you a pré-aprovação de crédito habitação, it’s only a preliminary opinion based on the documents you’ve submitted — usually your income, tax returns, and credit history. At this stage, the bank hasn’t yet:

• Assessed the property itself,

• Completed a formal valuation,

• Performed internal compliance checks, or

• Issued a binding offer letter.

So even if you’re “pre-approved,” your loan can still fall through once the bank reviews the property details or final paperwork. Think of pre-approval as a friendly nod, not a handshake.

The False Security of a Mortgage Pre-Approval

Many buyers — especially foreigners — see a mortgage pre-approval and assume the deal is as good as done.

But here’s what can still go wrong:

• The property valuation comes in lower than expected.→ The bank will reduce the loan amount, leaving you to cover the gap.

• The bank changes its interest rates or internal lending criteria.→ That “great offer” can disappear before you even sign the promissory contract.

• Your personal circumstances change.→ A job change, extra loan, or currency shift can make the bank pull back the offer.

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Bottom line: Until you have final approval — and a binding offer from the bank — you don’t have a guaranteed loan.

What “Final Mortgage Approval” Really Means and how smart buyers get them in Portugal.

I guide clients beyond the pre-approval stage — because I know that final approval is what truly matters most.

I work directly with multiple Portuguese banks to:

• Get your documents properly assessed - have the banks truly understand YOU,

• Match you with the most reliable lender,

• Ensure your pre-approval turns into a confirmed mortgage, not an empty promise.

Once all of that is done, that’s when you can move forward confidently — sign the promissory contract, pay deposits, and set a date for the final deed (escritura).

Because in the end, confidence doesn’t come from a pre-approval letter — it comes from a guaranteed mortgage. Contact me to book a online meeting where we can discuss your needs in more detail.