Mortgage Crash Course – Step 4: Applying

Get approved and secure your financing

Loan Promise ("Lånelöfte")

What It Is: A preliminary approval stating how much you can borrow. Often required by the realtor before you can bid on a property.
Not a Guarantee: The bank does a final check after you've won the bidding. If your finances change, they can revoke it.
Validity: Typically 3–6 months depending on the bank. Get a new one if it expires.
Multiple Promises: You can get promises from several banks simultaneously. This doesn't commit you to any of them, but it will result in several credit checks ("Kreditupplysning") and may drag down your credit rating if too many.

ID & Income: Valid ID, recent pay slips ("Lönespecifikation"), employment certificate ("Anställningsintyg"), and latest tax return.
Self-Employed ("Egenföretagare"): Last 2–3 years of annual reports ("Årsredovisning") and tax returns. Banks are stricter and may approve a lower amount; some banks require permanent employment ("Tillsvidareanställning") and don't allow self-employment.
Assets & Debts: Bank statements showing your down payment ("Kontantinsats"). Full overview of existing loans and credit.
The Property: Sales listing ("Objektsbeskrivning") and property designation ("Fastighetsbeteckning").

Minimum 15%: By regulation, at least 15% of the property's value must be your own money. A proposal to lower this to 10% from April 1st 2026 is pending in the Riksdag (see Step 1, "Upcoming Rule Changes").
Sources: Savings, gifts from family, sale of existing property. Banks may ask for documentation of origin for amounts larger than 100 000 SEK.
Gifts: Common from parents. The bank may require written confirmation ("Gåvobrev") that it's a gift, not a loan.
More Is Better: Larger down payment means lower Loan-to-Value Ratio ("Belåningsgrad"), lower amortization, and better rates.

Bridging Loan ("Överbryggningslån"): Temporary loan that bridges the gap when you buy a property before selling the old one.
Earnest Money Loan ("Handpenningslån"): Short-term loan to cover the 10% earnest money ("Handpenning") at contract signing, when your cash is tied up.
Cost: Higher interest, interest-only ("Amorteringsfritt"), typically limited to 6–12 months.
Risk: If your old property sells for less than expected, you may end up with more debt than planned.

Step 4 of 8