The housing loan is granted by the bank on the basis of a loan application. The application template is specified in the bank’s regulations and varies depending on the type of loan granted. There are items in the mortgage application that appear on every form, regardless of the bank. Such elements include the characteristics of the borrower, specification of the type of loan, loan amount, sources and repayment dates, purpose for which the cash loan is to be used, proposals for legal collateral for the loan, information on debts in other banks and accounts held in other banks. The application shall be accompanied by documents required by the bank.
Such documents include a certificate of income and information on permanent payments
Such as utilities or housing. The housing loan application is formally checked, registered and subject to further verification. The analysis of the application consists in the need to answer questions such as whether the borrower is able to return the contracted mortgage along with interest due on the dates set out in the loan agreement, what is the bank’s risk in the event of a loan and what loan terms can be proposed. Qualification procedures are quite long and laborious, so banks give themselves up to two weeks from the moment of submitting the application. In some cases, an application for a consolidation loan may be rejected if, as a result of the analysis, the bank comes to the conclusion that the loan could be unpaid or delayed if the borrower has made an entry in the Credit Information Bureau about unreliable repayment of loans earlier or other arrears.
Bankers sometimes obtain information about the customer from other banks
After positive verification, the bank carries out economic and financial analyzes regarding the borrower’s financial condition. Agreement on the terms of the housing loan agreement begins as soon as initial interviews and the application have been carried out.