How to Get Approved for a Home Loan
Buying a property is, for most Brazilian families, the biggest financial decision of their lives. A home loan is the path that makes this dream possible for those who don’t have the full amount available — which represents the vast majority of buyers. However, there is a gap between wanting to finance and having the credit approved that many people underestimate.
Banks and financial institutions analyze a series of criteria before releasing hundreds of thousands of reais to a buyer. This analysis can seem like a maze, especially for those going through the process for the first time. The good news is that most approval criteria are within the buyer’s reach — as long as they prepare in advance.
In this article, you will understand how real estate credit analysis works, what the main factors leading to approval or rejection are, and what to do, in practice, to increase your chances of getting the financing you need.
How Real Estate Credit Analysis Works
When you apply for a home loan, the bank conducts what we call a credit analysis. This process has two main focuses:
- Buyer’s analysis: assesses your payment capacity, financial history, income stability, and current debt.
- Property analysis: checks if the asset has a value compatible with the requested financing, if the documentation is regular, and if there are any legal impediments.
Both aspects need to pass the analysis. Even if the buyer has an excellent financial profile, a property with irregular documentation can make the deal unfeasible — and vice versa.
Criteria Banks Evaluate
1. Credit Score and History
The credit score is a score calculated by credit bureaus (such as Serasa and SPC/Boa Vista) that reflects your payment history. The higher the score, the lower the risk perceived by the bank — which can result in better rates and faster approval.
To check your score for free, you can visit the Serasa website or your bank’s app. Active negative records (name in SPC, protests, open debts) are one of the main reasons for immediate rejection in home loans. Before applying for credit, resolve any pending issues.
2. Income Commitment
The most important rule: the loan installment cannot exceed 30% of your gross monthly income. This is the general guideline adopted by the Brazilian financial system, although each institution may have its own criteria.
For example: if your gross income is R$ 8,000, the bank will hardly approve installments that exceed R$ 2,400. This includes not only the loan in question but all debts already registered under your CPF — credit card installments, personal loans, car financing, etc.
3. Income Stability and Employment Relationship
Banks analyze the regularity and predictability of your income. Workers with a formal employment contract (CLT) tend to have easier approval, as they present pay slips and CTPS as proof. Self-employed individuals, MEIs, and freelancers need to present additional documentation, such as bank statements for the last 12 to 24 months, Income Tax Declaration, and registered pro-labore.
This does not mean that self-employed individuals cannot finance — but it requires more documentary organization and, in many cases, a longer analysis time.
4. Relationship with the Bank
Having a checking account, transaction history, and other products at the bank where you apply for credit can facilitate the analysis and, in some cases, result in slightly more favorable conditions. It is not a determining criterion, but it helps.
The Importance of a Down Payment
Home loans in Brazil generally do not cover 100% of the property’s value. Most banks finance between 70% and 80% of the property’s appraised value — which means the buyer needs to have between 20% and 30% available as a down payment.
Besides the down payment itself, it is essential to reserve resources for the transaction costs, which are usually significant:
- ITBI (Real Estate Transfer Tax): varies by municipality, generally between 2% and 3% of the property’s value.
- Property registration in a notary’s office: varies by state and property value.
- Bank and property appraisal fees.
These costs are not financed and must be paid upfront. Ignoring them in the planning is a common mistake that can compromise the negotiation.
Financing Options: Understand Your Choices
Housing Finance System (SFH)
The SFH is the most common option for lower and medium-value properties. It uses FGTS and savings (SBPE) resources. To qualify for the SFH, the property must meet a value limit established by the National Monetary Council — check the current value directly with the Central Bank (bcb.gov.br) or the financial institution, as this ceiling is reviewed periodically.
Real Estate Financing System (SFI)
The SFI is used for higher-value properties or for those who do not qualify for the SFH. Interest rates tend to be higher, and there is no value limit for the property.
My House My Life Program
For low- and middle-income families, the My House My Life program offers subsidies and reduced interest rates. Income brackets and subsidy values are defined by the federal government and can be consulted on the Caixa Econômica Federal website (caixa.gov.br) or the Ministry of Cities portal.
> Important: home loan interest rates vary according to the bank, the modality, the term, and the buyer’s profile. To know the real rate that will be applied to your case, request simulations from at least three different institutions and compare the Total Effective Cost (CET) — not just the nominal rate.
Step-by-Step to Increase Your Approval Chances
- Check your CPF and score in advance. Before starting the property search, check for negative records or pending issues in your name and resolve them.
- Organize your financial documentation. Gather the last three pay slips (or bank statements, if self-employed), IR declarations for the last two years, FGTS statement, and updated proof of residence.
- Reduce your current debt. Pay off or settle existing debts to decrease the perceived income commitment by the bank.
- Calculate how much you can commit. Make a realistic simulation: add up all your current monthly debts and check how much space is still available within the 30% gross income limit.
- Define the property value that fits your budget. Not the other way around. Many people fall in love with the property and then try to “fit” the financing — this tends to lead to frustration.
- Simulate in different banks. Use the online simulators of banks and the Central Bank (bc.gov.br/calculadora) to compare scenarios. Always compare by CET, not just by interest rate.
- Request pre-approval before signing the purchase contract. Pre-approval does not guarantee final financing but gives an indication of the available limit and speeds up the process after choosing the property.
- Check the property’s documentation. Negative debt certificates, updated registration, IPTU up to date, and absence of liens or lawsuits are essential. Consider hiring a lawyer specialized in real estate law for this analysis.
Portability: An Alternative After Approval
If you already have an active loan and interest rates have dropped since contracting, it is worth evaluating mortgage debt portability — which allows you to transfer your contract to another bank with better conditions, without needing to settle and take out a new loan from scratch. To better understand how this mechanism works, read our article Is Debt Portability Worth It for You?.
Common Mistakes Leading to Rejection
- Requesting an amount above payment capacity: the bank knows, even if the buyer doesn’t realize it.
- Not declaring income correctly on the Income Tax: undeclared informal income cannot be proven to the bank.
- Ignoring small debts: a small overdue bill that became a negative record can be enough to reject the analysis.
- Buying the property before approving the credit: signing a purchase and sale contract before having the loan approved can lead to financial losses if the credit is denied.
- Underestimating additional costs: ITBI, notary, and bank fees can represent 3% to 5% of the property’s value.
Conclusion: Preparation Is the Best Path
Getting approved for a home loan doesn’t depend on luck — it depends on planning. The sooner you start organizing your financial life with this goal in mind, the better conditions you will be able to negotiate and the lower the risk of surprises along the way.
Take care of your score, keep your accounts up to date, document your income carefully, and above all, understand the product you are contracting. A home loan is a long-term commitment — generally, 20 to 35 years — and deserves the same attention you would give to any important decision in your life.
This content is for educational and informational purposes only. It does not constitute investment advice, financial product, or personalized consultancy. Financing conditions vary between institutions and client profiles. To make decisions about home loans or any financial product, consult a qualified professional or advisor registered with the CVM.
