One aspect of buying a house in the Netherlands is how incomprehensible the entire process can seem. So how does it work, and how can you make sure you get through it all with as little stress as possible?
Let’s say you’ve started looking at the Dutch property market and are thinking perhaps now is the right time to buy a home. There is a lot to sort out and it can be complicated, so what is the most important thing you can do to get ready for success?
“It’s all down to getting your finances sorted out first,” says ABN Amro mortgage advisor Anwar Abdu.
ABN Amro’s SureStarter service, which is currently free, begins with a meeting between the potential homebuyer and a mortgage advisor to assess their financial situation and the size of a possible loan.
“It’s not definitive, but it does give you a very clear indication of what you can borrow,” says Anwar. “That means you can start house hunting. When you’ve found a house that meets your wishes, then you can place a bid, either by yourself or through a buying agent, and you know the maximum amount you can offer.”
How much can you bid?
Overbidding remains very much the norm in the overheated Dutch housing market. According to estate agents’ organisation NVM, in the first quarter of this year, two-thirds of potential buyers offered more than the asking price for a property.
Your estate agent will be able to help you assess how much you should bid, and Anwar does recommend commissioning an agent to help you, especially if you are new to the market. They will take into account the amount of work which needs to be done to the property, the state of the foundations, and general market conditions in the neighbourhood where you are looking to buy.
Together you make an offer on the property and wait to hear if it has been accepted or not. Once a bid has been accepted, the next phase in the process begins: drawing up the purchase agreement. That takes a little time, which can be stressful, but if you checked everything out carefully with your mortgage advisor before you started, there should be no reason to worry.
Get an official valuation
While the purchase agreement is being drawn up, you will need to organise an official valuation of the property so you are ready to move as soon as you have signed the contract. After that, you have a cooling-off period of three days to finalise the mortgage paperwork. A service like SureStarter takes the pressure off by giving you clarity on your financing within those three days.
“So if you sign, say on Monday, you have until midnight on Thursday to finalise your mortgage,” says Anwar. “We’ll fast-track your documents, check your income and complete the paperwork.”
Of course, if you’ve already started the SureStarter process with a mortgage advisor, you’ll have a very good idea about how much you can spend, taking your savings into account, and will have kept within your limits. So that makes it all the more likely you will be able to get the mortgage you need.
Buying a home in the Netherlands can be challenging, but not impossible. With ABN Amro SureStarter, you will know exactly where you stand within three days after signing your purchase contract. Ask for the terms and conditions.
