The mortgage allows you to implement housing plans, and is also an opportunity to develop investments related to the real estate market. What exactly is and how to get a mortgage?
A mortgage is a bank product secured by a mortgage and the funds obtained can be used for the purposes specified in the contract. In a situation in which the borrower fails to pay the principal and interest installments, the bank has the right to take over the property on which the mortgage was established.
The mortgage loan catalog includes a housing loan, where the funds in one tranche are transferred directly to the seller’s account. A mortgage loan is also a construction and mortgage loan, which partly finances the investment carried out by the developer. Mortgage loans can also include a consolidation loan against real estate, which allows you to combine and repay existing debts, and a refinancing loan against a mortgage that allows you to transfer your mortgage to another bank.
The mortgage is granted in high amounts, the loan period lasts up to 30 years, which is why banks impose a number of requirements on potential clients. The conditions for applying for a mortgage loan are determined by the specific offer of the banks, however the catalog of basic expectations is usually harmonized.
Few people can afford to implement housing plans for cash, for a large part the own contribution is often a limitation. Currently, the amount of own contribution is within 20% of the value of the loaned property, lower own contribution is always associated with higher mortgage costs, then you have to take into account the obligatory additional fees and commissions.
To get a loan against real estate, we must have creditworthiness, the bank always checks the risk of borrowing money, analyzes our financial debt repayment options.
When applying for a home loan, we must be aware that our credit history plays a huge role, delays or defaults on repayment of existing debts always work against us. Before taking out a loan under a mortgage, it is also good to ensure a stable professional situation, during the verification procedure the bank examines the source and amount of our income.
The procedure for applying for a mortgage is very formalized, so when submitting the application together with the required attachments we must complete a number of documents.
Min. our ID card, another identity document together with a photo, certificate of employment and income obtained, PIT 37 for the previous year, ZUS certificate on the basis of the basis from which contributions were paid for the last 6 or 12 months, bank statement for the same time. The Bank will also request the basis for purchasing the property (preliminary agreement), a copy of the land and mortgage register, a document confirming the payment of own contribution.