A mortgage is a very popular banking product among borrowers. It has many attractive features, which sometimes turns out to be a much better way to get financial support than other types of credit. Borrowers interested in this form of loan, therefore, apply to banks for a mortgage, but will everyone receive a positive answer?
It turns out that the process of applying for a mortgage takes a long time and does not always end with the bank paying out the money. It is often the case that the borrower waits for an answer which turns out to be negative. Why can’t everyone get this loan?
Possession of real estate
This is a basic condition to be met, without which it is simply impossible to get a mortgage. It is based on the fact that the borrower, who owns a given property, imposes a mortgage on it in exchange for obtaining money.
In the event that he stops paying off the loan, the bank is able to take this property from him as compensation and recover his money. If the customer does not own any property, he cannot use a mortgage. He then has other types of loans, e.g. cash – check the offers in our cash loan comparison website .
Creditworthiness is the basis for obtaining any loan from a banking institution. It is clear that the bank must have at least a shadow of certainty that when signing a contract with a client, he can count on him meeting all the criteria and meeting his obligations.
Therefore, before such an agreement is signed by both parties, the bank must check the customer for his previous credit history by referring to information from the Credit Information Bureau. If the customer is in arrears or is in arrears with payments for earlier obligations, he will not be credible and will not receive a positive response to the next loan application. On the other hand, if his BIK history is positive, i.e. he has paid all his previous obligations on time, his chance of getting a loan increases.
In the next text we discussed the relationship between mortgage loan and BIK in a broader sense. The next step of the bank is to check the earnings of the future borrower, as well as the type of contract and calculate how much he will be able to financially deal with paying the installments. If he gets a plus, the loan will be granted to him.
Remember that age also plays a big role in granting credit. Certainly, minors cannot count on credit. People over 18 years of age, however young, with an uncertain professional situation may also have problems obtaining it.
A mortgage is a large amount for many years. A precarious person is too risky because you never know if he will stay in his current job. Often these are contracts for a trial period, orders or internships that banks do not prefer, even do not take into account. Not only young people have a problem obtaining a mortgage. The borrower cannot be a very elderly person.
As we have already mentioned, the mortgage contract is signed for years, while the elderly and the sick are not sure that they will live to the end of the contract. In addition, living on a small pension and in need of money for medicine may simply not be able to pay the monthly installments. Therefore, signing a mortgage contract is too risky for both parties in this case. For more informationon the relationship between the mortgage and the borrower’s age, see our article on this topic.