A mortgage is a commitment for many years. That’s what most of us think about him and are a little afraid of him. However, it is worth to approach it differently. If you don’t have your own apartment, you probably rent it.
This involves not only the need to pay bills, but also a monthly fixed fee for the owner for rent. When you decide on a mortgage, you pay the rent – in the form of installments – every month to the bank. The only difference is that after repayment the loan is yours. Check, therefore, how to prepare for a mortgage.
Mortgage – step 1: talking to a consultant
You have already made the first step, checked the offers using Totalmoney.pl and decided to learn more. You sent an inquiry, maybe even a few (which we encourage, because it is worth checking the offer of several banks). But what’s next? When will the bank call you back? What questions can you expect from a consultant? How will the loan process proceed? We answer. So one by one…
However, we warn you at the outset that a mortgage is not a product you apply for online and you will sign the contract during one visit to the branch. And this is not because the bank does not respect your time. He must simply analyze your financial situation well, gather the necessary documents and thoroughly prepare the contract. If you had to lend someone that much money yourself, you would also do it carefully.
A bank whose mortgage offer you are particularly interested in can call within a few minutes or even a few hours since sending your inquiry. It depends on the availability of consultants. If the bank does not call you back, be patient.
What information will you need to provide during a telephone conversation? It depends of course on the bank. One will arrange a visit to the ward, another may ask for some basic information. Therefore, better prepare yourself for questions regarding, among others:
- Mortgage Amounts
- Loan period
- The amount of own contribution (the minimum own contribution accepted by banks is up to 10 percent of the value of the property, however, it is best to have at least 20 percent)
- The purpose of lending (e.g. buying an apartment or building a house)
- Sources and amounts of net monthly income
- Financial obligations (e.g. are you currently repaying another loan or using a credit card)
- Estimated monthly maintenance costs (how much do you spend on bills monthly)
- Whether you will apply for a loan alone or with another person
An important information for the bank will also be whether you are its customer or not.
Based on the information received, the consultant can very early estimate the maximum loan amount you have a chance to apply for and propose the repayment period. However, this information will not be final and binding.
No credit terms will be offered to you over the phone. Get ready to make an appointment at the ward. The consultant will agree with you the date and the most convenient location for you. Confirmation of the appointment can be received to the e-mail address provided or received by SMS.
Mortgage – step 2: visit to a bank outlet
Thanks to a phone conversation with the bank and arranging a visit to the branch, you do not have to worry about wasting your time, and finally, it turns out that no employee will be available to you.
Sending a contact request for a mortgage (just like you did using our comparison website) allows you to not only arrange a meeting, but also helps you prepare for it. The consultant will tell you what documents are worth taking to the first meeting.
Most often, during the first visit regarding applying for funds to buy a flat, you will need an ID card and an excerpt from the history of your bill for the last 3 months, which will confirm the impact of remuneration.
During such a meeting, a bank employee will tell you about the mortgage, answer all your questions and explain what its next stages look like, as well as propose you the terms of the mortgage, but this will not be the final offer. This will only be offered to you after your analyst has reviewed your application.
Remember that a direct conversation with an advisor is time to dispel all doubts. Don’t be afraid to ask.
Mortgage – step 3: it will not end on one visit
You are aware that the process of applying for a mortgage is much more complicated than in the case of a cash loan. It requires gathering detailed documentation regarding both the property you want to buy and your creditworthiness.
If one of your friends already has him behind him, he will definitely confirm that you will have more than one visit to a bank branch. However, this is nothing wrong, because in the case of such a commitment for years, it is not worth hurrying, and signing contracts too hastily.
If the bank approves your application, the next stage before signing the loan agreement will be securing the transaction and signing the preliminary purchase agreement.
Again, you will need to provide documents to sign the final contract. Once you have completed the formalities, you will sign the contract. Read and analyze it carefully.
In the last step you will receive funds to finalize the purchase of your dream apartment. Then the stage of applying for a loan will end and its repayment will begin.
When applying for a mortgage, be prepared that you will not do the formalities in a week. Although, taking into account the fact that many Poles decide on it, you can get through the whole process and enjoy your own place to live. Good luck!