The reasons why banks may refuse mortgages
So, why the bank may refuse a loan?
Damaged credit history. That it often becomes a barrier to purchasing an apartment through a mortgage. For several years, banks transmit information about their borrowers to credit bureaus, carefully capturing all failures and late payments of citizens.
For the bank, in which the person applied for a mortgage matter how unfair payer citizen was in the past. For example, if only once, and less than five days delayed payment on the loan, the bank with no problems will ignore this fact. If payment delays have been repeated and long-term, the bank may require or refuse or assurance that the borrower is corrected. These safeguards could serve time paid utility bills, child support and other bills.
If the credit history contains information that people did not return the loan, the bank of its application would not even be considered.
"Gray" wages. Many banks declare their readiness to lend to borrowers who receive a salary in an envelope. These banks even has its own form, the form for income verification. Borrower enough to enter the amount of its true earnings and sign the form at the director and chief accountant.
However, as practice shows, if the borrower does not provide a certificate of 2-PIT at least a minimum amount of loan it is likely to be denied.
Lack of formal employment. On this point, it would seem, everything should be clear. But managers involved a mortgage, say that the appeal to the banks officially unemployed people are not so rare. Some of them want to prove their ability to pay extracts from deposit accounts, others are ready to bring a large number of guarantors but also the other banks consistently denied.
EGSN Experts say that sometimes with questions about the possibility of obtaining a mortgage are turning apartment investor. Some of them rent several apartments, and actually have a very good salary. They have a chance to get a loan. But, first, if the delivery of the apartments will be designed as self-employment, and secondly, if one of the available apartments will be provided as collateral.
Short and recent experience a new job. Officially, the banks say they are willing to lend to young professionals, whose work experience more than one year. In fact, those who have not worked for three years, will not be able to get a loan. Also in the banks claim that for a loan on a new place of employment, except for a trial period, it is sufficient to work one month. And at the same time refuse to borrowers whose length of service in a new location less than half a year.
The age limit. In Russian, as well as in foreign banks believe that with the retirement of the borrower loses the ability to pay. For our country, this fact is virtually certain. Therefore, the maximum term of the loan is equal to the number of years remaining in man until his retirement.
That is, theoretically, a citizen, who until his retirement in less than 5 years, can expect to receive a mortgage loan, but in practice, it is likely to receive a waiver.
Existing loans. Often, banks refuse to borrowers who took up several loans and have not yet had time to repay them. The banks fear firstly, that the person will not sustain the burden of debt and will pay regularly, and secondly, that in the case of its bankruptcy of the borrower, debt reimbursement will require several creditors.
Therefore, credit experts advise: before you apply for mortgage loans, repay even small loans.