Like any commercial organization, a bank, allocating funds for the purchase of mortgage housing, must be confident in the return of funds and the receipt of profit in the form of interest. This forces all credit institutions to take measures to ensure the security of the transaction, carefully considering the candidature of the borrower and assessing the chances of successfully repaying the debt in a strictly time-bound manner. Before contacting a bank, you need to find out who is being given a mortgage and what are the criteria for selecting potential clients.
The main requirements of banks that influence the decision
Having thought about buying an apartment with borrowed funds, first of all it should be clarified under what conditions they give a mortgage and what requirements they put forward to borrowers.
For the financial structure, the most important thing is to ensure profit when issuing borrowed funds repaid in full and on time. For this reason, the banking organizations that give mortgages, put forward a number of parameters that the future client must comply with:
- Age. The older the client who applies for the mortgage, the greater the risk. The ideal age for mortgage processing is 25–40 years.
- Excellent credit history. Large amounts of credit require careful verification of citizen records in the Bureau of Credit Histories. The presence of bad credit debts, delays can reduce the chance of obtaining a mortgage. The lack of CI also does not speak in favor of the client, since it is impossible to assess how much the borrower is respectable and reliable.
- Sufficient income. At the same time, it is important that financial receipts be stable, represent wages. The amount that a borrower can claim is limited on the basis of a monthly payment to repay the debt.
In determining the financial situation, the bank will pay special attention to the source of income and the ability to confirm officially earnings. The following categories cannot receive mortgage real estate due to inconsistencies in the nature of income received:
- persons registered as SP;
- freelancers and self-employed workers;
- Citizens who are not able to confirm their real salary with certificates 2-NDFL.
The reason for refusal can be the unreliability of the income level received, so even tax returns submitted for a long period of time are unlikely to help overcome the bank’s reluctance to issue mortgages to freelancers and entrepreneurs.
In addition to the above criteria, there are many other nuances that the bank necessarily takes into account when considering an application for a mortgage.
Not only the borrower chooses which bank offers the best mortgage programs, but also the financial institution, accepting applications from citizens, assesses the reliability of the future payer.
The main criterion is the ability of a candidate to confirm a decent level of official stable earnings. Thus, only the official salary can be an ideal way to confirm income in the form of a 2-NDFL certificate prepared by the employer’s accounting department.
To assess the financial situation, not only the total income of the borrower will be taken into account, but also the number of dependents in the family, as well as the cost of compulsory payments, other loans, taxes, etc.
In order to increase the amount of the credit line, the borrower can provide information on additional earnings, but it can only be confirmed if there is an official certificate from the employer.
Neither good work nor working age will matter when considering the application if the borrower has outstanding debts in other financial institutions. Receiving a request for a mortgage, the bank is required to apply for information in the CII, which stores records of how the citizen paid the previous loans. A bad story can seriously complicate the process of obtaining a mortgage or even eliminate such a chance. Each organization has its own criteria for assessing the reliability of the next candidate for a mortgage, but you can not hope for favorable conditions with frequent delays.
The higher the position of the bank, the stricter the requirements for a potential customer’s credit history. Negative CI will not allow mortgage housing in Sberbank and other major financial institutions. In this case, it remains to rely only on the proposals of lesser-known lenders who put forward low requirements for the reliability of the client. Profitable options with a minimum overpayment almost become unavailable.
Get a mortgage is also unrealistic in the absence of records in the BIC. The fact is that a banking institution cannot assess the risks of non-repayment of debt, as well as the degree of responsibility and decency of a citizen. To get a large loan under optimal conditions, the borrower must have at least minimal experience in successfully obtaining and repaying other loans.
When sending a preliminary loan request, each borrower specifies the main parameters to which he must comply. If, from a legal point of view, a citizen becomes independent from the age of 18, it is impossible to get a serious large loan to buy real estate at this age. At a minimum, you need to wait until the age of 21, and in some banks – 23-25 years. Too young age scares away the high risk of non-return of funds, lack of stability, low incomes of citizens.
As we approach the retirement age, a credit institution has other grounds for refusal – financial status, income and health, as a rule, worsen, forcing the lender to set upper age limits. Since the mortgage is taken for a long time, the upper threshold of age at the end of payments is limited to 55–65 years. Only in some cases, some programs provide for the possibility of payment within 20-30 years, provided that the borrower’s age does not exceed 75-80 years by the time the debt is completely closed. Thus, the older a person is, the less time and amount a bank can approve.
It is almost impossible to obtain housing with the attraction of borrowed funds without making your own savings. For a creditor, having a person’s money serves as a basis to consider his income sufficient to make savings. If previously it was possible to find some programs without a down payment, then at the present time, no mortgage can be obtained without additional investments.
In standard cases, the amount of the contribution is at least 15%. The less money invested by the borrower, the more doubts about whether they will give a mortgage. There is a direct relationship between the value of the down payment and the interest rate. The ideal loan option is to confirm to the lender that they are ready to use personal savings on real estate.
In some situations, citizens can take a mortgage, even in the absence of savings:
- Use maternity capital.
- To issue an additional consumer loan.
- Take a loan on the security of existing housing.
Most of the credit offers of Russian banks are designed for Russian citizens. One of the main requirements for those who give a mortgage for an apartment, is the fact of citizenship certificate. However, in a number of financial structures there are programs for financing foreigners. As a rule, a person with foreign citizenship will be allowed to take a housing loan in banks with foreign capital (RosEvroBank, DeltaCredit or Raiffeisen Bank).
When considering a preliminary application, the financial structure will take into account the presence of a permanent residence permit in the region where the bank is present, but recently this requirement has become less critical. Before submitting the request, it should be clarified to whom the mortgage for housing is given and whether the specific organization accepts applications from citizens residing in the region where the bank branches are located for temporary registration.
Stable employment in a reliable Russian organization increases the chances of a positive response to the application, but there is a certain framework for the minimum length of service of a person. In addition to the requirements of the total length of service of at least 1 year, the financial institution considers the current position of the borrower and the time spent at the last place of work. In most cases, credit approval is obtained with a minimum work experience of 4 months, however there are structures that reduce the duration to 1 month (for example, DeltaCredit).
Mortgage involves the mandatory registration of collateral. As a rule, it becomes acquired housing. However, the client can increase its attractiveness in the eyes of a financial institution by declaring its willingness to provide existing housing as collateral as collateral.