How to get a loan for an apartment? Procedures, earnings, documents

Although it is not that easy to get a loan for an apartment, everything can facilitate proper preparation for this process. That is why we present the general rules for granting mortgage loans and advise on how to find a favorable offer.

A housing loan step by step

A housing loan step by step

Whether or not a housing loan is granted depends primarily on your creditworthiness . It is influenced by various factors, such as the amount of income, own contribution or other financial liabilities. With the help of creditworthiness calculators, you can pre-determine how much money you will be allocated. This, of course, is only a simulation, but it will allow you to prepare for step two, i.e. search for favorable offers.

Again, online tools come in handy, this time for mortgage comparison websites. They gather information about various products in one place, you can easily analyze them and check the detailed conditions.

Once you know which bank to go to, you need to complete the necessary documents , which we will write about in a moment. There are a lot of formalities connected with it, which extends the whole process. But if you get a positive decision, then you go to step four, which is signing a loan agreement. Now (almost) nothing will stop you from buying your dream four corners.

What documents for a mortgage?

What documents for a mortgage?

But before this happens, it is necessary to prepare all documents for the mortgage. It is worth creating a so-called check the list in which you will tick off more points. What is needed?

The basis is of course the conclusion . However, to verify your identity you will need a photocopy of your ID card and other identity card .

Then you need to document your financial situation . You will need a certificate of earnings and type of employment relationship and period of employment. Banks require the presentation of a personal account statement for the last several months, as well as PIT-37 declarations. It may also be necessary to prepare documents related to servicing other debts.

The last group of documents concerns the property itself that you want to buy. And here the list is very long, in addition depends on the particular bank, so you should check it in the loan regulations. You will definitely need a preliminary contract and a document that will confirm your own contribution.

How much do you have to earn to get a loan for an apartment?

How much do you have to earn to get a loan for an apartment?

Many potential borrowers are asking themselves how much money you have to earn to get a mortgage. Unfortunately, this cannot be answered unambiguously, because too many factors have an impact.

It is easier to get information about when you have no chance of a mortgage . This usually happens when you earn a minimum wage. Considering other obligations, the loan installment would be too much of a burden for the daily budget, which increases the risk of insolvency for the bank. And that’s exactly where the specifics end, because each borrower is assessed individually . Therefore, if you are afraid that your creditworthiness is too low, never give up – in one bank they may refuse to grant you funds, but in the next they will take slightly different criteria into account, which will increase your chances.

Can I get a loan without an ID card?

 

Banks require a number of conditions and formalities to be met when we apply for a loan. Some of them can be bothersome, so it’s no wonder we would like to simplify the procedures as much as possible. However, this is not always possible. So can we take out a loan without an ID card?

Why is an ID required for a loan?

Why is an ID required for a loan?

Why do banks require us to have an ID card when we want to take a loan? The answer to this question is not complicated. An identity card is a document confirming your identity, which is very important for loans. Where money is involved, it is important to be sure that there is no fraud. That is why it is important for the bank to confirm that the person whom the loan was granted is really who he claims to be and everything took place in accordance with applicable law.

Can an ID card be replaced?

Can an ID card be replaced?

All right, so an identity document is absolutely necessary for us to get a loan. But does it have to be an ID card? Can’t you confirm your identity by presenting some other document, such as a passport ? Pursuant to law, more specifically the Act of July 13, 2016 on passport documents, the passport is the document confirming the identity and citizenship of a natural person. So?

Unfortunately, if we count on the fact that the passport will be a sufficient confirmation of identity, we will face a severe profession. In the case of credit, this is not enough. In the application, we must provide the number of the ID card, its expiry date, and information about the authority that issued it to us. Therefore, you must also have current proof to be able to confirm this data.

Credit without an ID card – is it possible?

Credit without an ID card - is it possible?

Yes, in some circumstances it is possible to take a loan without an ID card. However, this applies to special circumstances, especially when we take the loan again at the same bank. If the borrower has already incurred such a commitment in a given bank, the institution has already collected his personal data, so he does not have to ask for confirmation again.

This can be the case with the second, third and subsequent loans. However, if you decide to take out a loan in a given bank for the first time, there is no way out – the presentation of your ID card is a necessary condition.

What to do if we don’t have an ID card?

What to do if we don

Well, if we don’t have an ID card? It may happen that we lose it or it is stolen. Then what?

Well, in such a situation, the only way out is to get a new ID as soon as possible at the commune office or at the embassy, ​​if we’re just outside of the country . Only after obtaining new proof we will be able to get a loan.

It should also be remembered that if our evidence has been stolen, it should be reported to the police as soon as possible. And we should never take credit for proof when it was stolen from us.

Loan without income certificates – who grants it and on what terms?

A loan without earnings certificates is a way to quickly get extra money. Online loan companies offer it. For the lender, the income we receive is important, not the source. It is worth remembering that and stating in the statement of earnings also include scholarship or alimony.

Loan without income certificates – does it exist?

Loan without income certificates - does it exist?

The financial market offers various types of loans. These are both loans without a loan and loans without an income certificate. When reaching for such a loan, the lender will ask you to indicate the total amount of income, but you will not have to provide documents that will confirm this. If there is a need to check our credibility, the lender will contact our employer and verify the information we provide. Remember that the income statement should include income from all sources from which we receive it. The source of income can be:

  • contract of employment;
  • mandate contract;
  • contract work;
  • own business;
  • farm
  • pension;
  • scholarship;
  • contract, eg maritime;
  • apartment rental;
  • maintenance;
  • family and social benefits.

The income we receive from various sources is very important for the lender. It helps to determine our solvency. The loan decision depends mainly on him.

Borrower’s creditworthiness – how is it determined?

Borrower

When reaching for a loan without an income certificate, we must bear in mind that our creditworthiness will be determined on the basis of other parameters. In addition to the income for the lender, registers of debtors are important. Databases registering the debt of individuals or companies will tell if a given client has repaid or repays the loan on time. The BIK and KRD bases are most often taken into account.

They are sufficient to determine if the client is reliable and solvent. The following services are also used to confirm positive creditworthiness. They can be used from a computer, tablet or telephone. They provide the lender with real-time information about our payments, which is why the loan granting procedure without income certificates can be carried out even faster. Sometimes, our creditworthiness is not sufficient to reach for a loan without certificates. Despite this, the financial institution wants to grant us a loan.

In this situation, we may be asked to indicate a girrant, i.e. a person confirming our solvency. The guarantor undertakes to repay the loan for us if we are unable to do it ourselves. The second way to secure your finances against a bad credit history is to insure them. Credit insurance is payable. Reaching for it, we guarantee to ourselves and our loved ones that if the loan cannot be repaid, the debt will be settled from the funds collected for this purpose. Thanks to such different ways of verifying the credibility of clients, lenders can fearlessly grant loans without earnings statements to the applicant.

Car loan and collateral against certificates – on what terms?

Car loan and collateral against certificates - on what terms?

A loan without income certificates is a desirable product on the financial market. Lite lender is one of the companies that offers car loans and collateral against certificates. The lender provides its services based on a minimum of formalities, which is why we can complete the entire application process for additional money without leaving your home. What’s more, it only takes 3 minutes to complete the application. People from 21 to 70 years old can apply for a loan from this lender. The money can be used to buy a car on the secondary market or for any purpose with a car loan.

Contemporary payday loans and installment loans: a quick guide

 

All available statistical data prove that customers are increasingly choosing non-bank loans. While even a dozen or so years ago the industry of solutions such as popular payday loans could be considered as a margin at most compared to the banking sector, modern loan institutions are increasingly serious and more and more like competition for banks.

Contrary to stereotypes, often repeated by the press, the offer of modern loan institutions except the offer of banks not only in terms of availability. Today’s loan institutions are often able to offer loans on simply more attractive terms than banks do. In addition there are numerous additional attractions to mention here for example the offer of first loans with an APRC of 0% or loyalty programs for regular customers.

The offer of the modern loan industry, ie not only payday loans

The offer of the modern loan industry, ie not only payday loans

When we talk about the loan sector, the vast majority of us probably think only of quick loans for small amounts and with a relatively short repayment period. In reality, however, the offer of today’s loan institutions is much richer. Of course, popular payday loans are still an important element of this offer, but they are by no means the only element. An increasing number of companies specialize, for example, in long-term installment loans. In addition, the offer of modern lending institutions will also easily find solutions such as loan lines, secured loans or loans dedicated to specific customer groups, eg motorists or people in need of medical treatment financing.

As for the payday loans themselves, they are also currently very diversified. In addition to loans with a repayment period of up to 30 days, customers will also find offers where this period is at the level of 60, 90 and sometimes even 120 days. Also, the maximum available amounts of payday loans vary significantly depending on the characteristics of the lender’s offer.

What else can you count on when borrowing off-bank?

What else can you count on when borrowing off-bank?

Of course, promotions and different repayment terms are not over yet. Currently, loan institutions very often offer their clients, eg the option to extend the loan or refinance it, thanks to which we can avoid problems related to the lack of timely repayment. The option of paying out the loan amount via the check is also becoming more and more popular, ie with the complete omission of the so-called banking circuit.

You also can’t forget about extensive loyalty programs. They are offered by both loan institutions providing payday loans and lenders specializing in installment loans. Of course, a very common promotion option is now the possibility of taking the first loan at the APRC of 0%, so without any costs.

What conditions must be met to get a mortgage?

It is not easy to get a loan for an apartment … The bank will check us carefully before deciding to borrow money. No wonder, after all, he must be sure that we will be able to pay the installments on time. And how can we prepare for a mortgage? What conditions must we meet for the bank to grant us a loan?

Mortgage – terms of receipt

Mortgage - terms of receipt

A mortgage is a long-term commitment to a large amount, which is why the bank will only grant it to us if it is certain that we will be able to pay back the loan installments. To this end, our creditworthiness will be checked carefully , including the amount of monthly income . The decisive element in the granting of a mortgage by a bank is also the own contribution, which must amount to at least 20% of the value of the property on which we incur a liability. Another condition that must be met to get a mortgage is the borrower’s age.

Housing loan and the borrower’s age

Housing loan and the borrower

A mortgage is usually taken by young people who need money to buy a new apartment or build a house. Such people also have the best chance of getting a loan that they will pay back over the next 30 years. Of course, provided they have adequate creditworthiness. However, there are no rigid rules that specify the age to which such commitments are granted. It is most commonly assumed that the sum of the borrower’s age and repayment period should not exceed 70 years. Otherwise, an additional life insurance is required from the borrower.

How much do you have to earn to get a mortgage?

How much do you have to earn to get a mortgage?

It is worth remembering that high earnings will not always allow us to get a loan for an apartment, because the bank, when checking our creditworthiness, takes into account not only income, but also monthly expenses. It is also important whether the applicant has any other loans or credits and how many people he / she is dependent on.

And can you get a mortgage while working on a mandate contract? When granting us a loan, the bank must be sure that we will be able to pay it back. Therefore, when checking creditworthiness, an important element will be the type of contract the applicant is employed for. The dream situation will be having an employment contract for an indefinite period, however, this does not mean that, working on other terms, we have no chance to get a loan.

Own contribution in the mortgage

Own contribution in the mortgage

When applying for a home loan, we must already have some money set aside, which will serve as our own contribution. It should amount to at least 20% of the property value, while mortgage loans are currently granted for a maximum of 80%. It is also possible to get a loan with a lower contribution of 10%. In this case, however, we must take out additional insurance.

Mortgage vs. Mortgages – What Should I Choose?

For many years, the mortgage has been the cheapest solution for the Danes. That is why the vast majority of course have chosen it.

In recent years, however, there have been some changes that make the mortgage loan not necessarily the cheapest for you. Mortgages are bank loans with mortgage-like interest rates – and they are coming to stay!

Therefore, the mortgage is not always the cheapest

Therefore, the mortgage is not always the cheapest

For example, in recent years the contribution rates have risen – and this is especially true for mortgages above 60% of the property value. At the same time, the central bank’s interest rate cuts have meant that the banks have liquidity, but not as many opportunities for good returns.

A few years back, specially covered bonds were introduced, which meant that banks now have the option of issuing bonds against mortgages on real estate.

All of this has meant that banks’ mortgage loans can be cheaper than traditional mortgages – and unlike mortgages, the price of bank loans cannot rise along the way during the term of the agreement.

When Should I Not Choose Mortgages?

When Should I Not Choose Mortgages?

If you have to buy a home with 60% mortgages or more, you may want to look for something other than a mortgage. For loans of between 60 and 80% of the property value, mortgage rates are highest, and this is why the bank can be a cheaper solution.

The bank can be more flexible

Mortgages operate in such a way that their loans are financed through the sale of bonds. Therefore, the payments also follow the sale of the bonds and this does not allow for a particularly flexible repayment of the loan.

At the banks, on the other hand, you can take out loans reminiscent of a overdraft facility where you can borrow at your convenience and repay at your convenience.

Mortgages are therefore good for people with greater fluctuations in their income and costs.

The risk of a mortgage loan

The risk of a mortgage loan

On the other hand, the advantages of bank loans being more flexible than mortgages also mean that the bank may in some cases require the loan to be repaid in advance.

At the mortgage institutions, you can always be sure that if you comply with your part of the repayment agreement, you will be allowed to keep the loan for an agreed period of time – even if you go bankrupt, lose your job or other circumstances change.

Banks, on the other hand, usually have clauses that may require you to repay the loan ahead of time. This can be a problem if you have just gone bankrupt and thus cannot necessarily get a loan from another provider.

What should you choose?

cash

Exactly what loan is best for you depends on how much ice cream you have in your stomach and how stable your financial situation is.

Mortgages are safe and stable, but bank loans can be made cheaper and more flexible.

The most important thing is that you also read it in small print on your contracts – so that clauses and the like do not get behind you when you are in the fat barrel.

What is a revolving loan?

A revolving loan is a relatively young product of the financial sector. Banks and loan companies provide this type of services. The advantage of the solution is the fact that the customer has constant access to money. In the case of non-banking institutions, the limit may reach USD 5,000.

Revolving loan – what is it?

Revolving loan - what is it?

A revolving loan is one of the products of the financial sector. Banks and loan companies provide this type of services. As part of a special account, the borrower has a sum of money at his disposal. The loan amount depends on the client’s earnings and financial condition.

If the consumer repays the obligation, he can enter into another one at any time. This solution allows constant access to cash. If the customer does not use the renewable limit, the lender does not charge interest.

A revolving loan can be used:

  • Cash – withdrawing money from an ATM using a special card – e.g. thirteen card.
  • As a bank transfer
  • Cashless – by card payment for purchases.

Credit card – an alternative to a revolving loan

Credit card - an alternative to a revolving loan

Credit card features a revolving loan. How does a credit card work? The consumer using the card as a means of payment, takes a loan from the bank. Then, during the billing period, the financial institution debits the client’s account – it recovers the borrowed amount, including interest. The advantage of credit cards is that they are honored around the world. Because service providers (e.g. hotels) can charge the customer’s account at any time.

When applying for a credit card, the borrower should be aware that the bank will check its history in BIK. People with poor scorcing scores will be cleared away.

Overdraft – as a form of revolving loan

Overdraft - as a form of revolving loan

Overdraft can be treated as a revolving loan. The bank account owner orders the service via an online application or phone call. Its amount depends on the monthly income. For basic accounts (e.g. accounts for zero), the overdraft is not high – it can usually be from 500 to 1000 USD.

Any inflow to the account is credited towards paying off the debt. In most cases, the deadline for paying the debit is 30 days.

A revolving loan from a financial institution – an offer for those in debt

A revolving loan from a financial institution - an offer for those in debt

A flat loan is a relatively new product. Interestingly, people with other financial obligations can apply for the service – e.g. mortgage, online loan or car loan. The contract is usually signed for a period of several months. During this time, the borrower can deposit and withdraw money at any time.

The interest rate is slightly higher than for a banking product. The advantages of the offer include that it can be used by people with poor scores. However, you should be aware that the borrower must have liquidity.