When you find a home, the next step is to put in an offer on the house. You sign a purchase agreement with a seller as soon as your proposal is approved.
Besides, you must pay 10 % of the purchase price to secure a deal. A deposit protects a seller if a buyer decides to back out of the agreement.You have the option of paying the deposit with your own savings or obtaining a bank guarantee. If you do not have 10 % in your funds, your mortgage broker can arrange a bank guarantee. A third party charges a fixed fee to finance a security deposit.
For example, for a house costing €350.000, the bank guarantee can cost approximately € 350. Please note the bank guarantee fee varies per lender. Some banks offer a bank guarantee; in other cases, a mortgage broker arranges it for you. The deposit is transferred to the notary, not a seller. A notary handles administration and closing fees. After signing a purchase agreement, the next step is to secure a mortgage.
A mortgage pre-approval does not exist in the Netherlands. For this reason, it is highly recommended to sign a purchase with a financial clause. If a mortgage lender doesn’t approve the finances, you can cancel the deal without losing a 10 % deposit. Find out how the financial clause works in the Netherlands.