Start with a mortgage pre-approval
Apply to a bank for a mortgage pre-approval (swedish: lånelöfte), a preliminary assessment of how much you can borrow. Most banks offer online applications. You will be asked to you give details of your income, employment, other loans, household and how much you can put towards the purchase from your own funds. You should be honest. You will most certainly need to show evidence of your statements later on when signing the agreement.
The bank may ask for payslips, proof of employment and evidence of where your down payment comes from. A mortgage pre-approval lasts for a limited time, normally 3 to 6 months. Check the expiry date with your bank. It is not a binding loan offer. Before you sign a purchase contract, contact the bank for final approval of both your finances and the home.
Once you have this ready, you will know what budget you have to work with and you can start searching for homes within your price range.
Finding a home and arranging a viewing
Start with Hemnet (Sweden's main property listings site) or Booli (Two of the biggest Swedish listings sites) where amost all real estate for sale are listed. The seller pays to list on Hemnet. Booli offer free listings. You´ll find a link from these sites to estate agents' own listings. Look at the asking price, location and property description, then contact the agent to find out when the home can be viewed and whether you need to register. Normally they will inform about dates and times for viewings in each listing. Agents normally arrange and conduct viewings, according to the Swedish Estate Agents Inspectorate, although the seller may show the property instead.
At the viewing
Inspect the home carefully and ask the agent about anything you do not understand. The buyer is responsible for examining the property, the inspectorate says. Check that the appliances work and water runs, and if you feel uncertain don´t hesitate to use a professional inspector. Read the property description and, for a bostadsrätt (a tenant-owned flat, bought as a share in a housing cooperative), the association's annual report and rules.
Making a bid
Give your bid to the estate agent, verbally or in writing, and ask how the seller wants bids submitted. You can attach conditions, such as a deadline. In an open bidding process, which is normally used in Sweden, the agent passes bids to the seller and informs other interested buyers, who can bid again. In a closed process (not so normal), bids are normally submitted in writing by a deadline and are not shared with other bidders.
The seller chooses the buyer and does not have to accept the highest bid. The agent must pass on all bids until the contract is signed, and either side can change its mind before then. An accepted bid does not guarantee that you will get another chance to bid if a rival offer arrives.
Remember: A bid on a Swedish home is not binding, even when the seller accepts it. The purchase becomes binding when both buyer and seller sign the contract, according to the Swedish Estate Agents Inspectorate, the agency that regulates estate agents.
The agent's role
The estate agent is an independent intermediary who must consider both buyer and seller, while giving particular attention to the seller's financial interests, according to the inspectorate. The agent markets the home, passes on offers and normally prepares the documents and goes through them with both parties. The agent checks certain details, including ownership and charges, but is not normally responsible for inspecting the home for the buyer.
Signing and paying
Once the seller chooses you, contact your bank for final approval before signing. Buyer and seller usually sign at the agent's office. Read the contract and any conditions, including an inspection clause Thoroughly, before signing. The contract also records the agreed completion date.
A deposit is usually paid about a week after signing and is often 10 percent of the price. It forms part of the purchase price. On the agreed completion day, the parties review the final settlement and the buyer's bank transfers the remaining money, according to the inspectorate.
Getting the keys
The buyer normally receives the keys and can move in on completion day, after payment, the inspectorate says. Buyer and seller agree on the date in the contract. For a tenant-owned flat, the housing association must also approve the buyer as a member. For a house, the buyer generally receives a deed of sale at completion and uses it to apply for registration of ownership.
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- Checklist before buying
- • Get a mortgage pre-approval and confirm final financing with the bank before signing.
- • Set a budget that includes the deposit, housing fees and other costs.
- • Examine the property carefully; consider a professional inspection for a house.
- • Read the property description. For a tenant-owned flat, check the association's annual report, rules and membership requirements.
- • Ask the agent how to bid and remember that the seller can choose a buyer other than the highest bidder.
- • Read the contract and agree on any conditions and the completion date before signing.
- • Arrange the deposit, final payment and mortgage paperwork in time for the dates agreed.
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