Banks are investing 900 million euros in the mortgage market in order to “give movement to the economy” of the country.
The average size of a home loan currently ranges from 70,000 to 90,000 euros, seven out of ten applications are approved, while the borrower’s own participation should be about 25% of the value of the property.
After a decade of being in a “frozen” state, it was decided to start issuing housing loans to citizens again. According to an assessment made by competent bank executives, the issuance of new loans in this sector has been increased by 900 million euros. As the heads of the banks indicated in their official reports, the residents of the country are interested in the quick review of documents (approval of the loan) and the fastest repayment period.
What are the main steps in obtaining a home equity loan that a potential borrower needs to know in order to shorten the repayment time? What are the main problems? The heads of the bank answered these and other questions.
The main stages of obtaining a mortgage loan
The process of obtaining a home loan includes the following main stages:
Apply for a loan. Financial pre-approval. Technical and legal inspection of the property. Signing a sales contract with the seller. Final confirmation. Signing a loan agreement. Pre-registration of property. Issuance of credit.
Typical problems delay the process:
Incomplete financial data and uncertainty of income and liabilities in assessing the preliminary approval of financial statements. Delay in finding a property to buy or changing the status of a property of interest during the loan approval process. Lack of required supporting documents for the property. Problems of the technical and legal status of property (arbitrary sections, inaccuracies in documents, problems of property identification, encumbrances on property, etc.).
The most significant delays are observed in resolving these problems.