What to ask at the bank about a mortgage loan? | You do not know? Check!

What to ask at the bank about a mortgage loan? Exactly what to ask at the bank or financial intermediary, if we want to take a mortgage to buy a flat or a house?

First of all, you should know what a mortgage is. To put it shortly, it is a long-term loan that we get in a bank and whose real estate is secured. A mortgage loan is a special-purpose loan , which can be used, among other things, for:

  • purchase of real estate on the secondary or primary market,
  • purchase or construction of a house,
  • renovation, finishing of real estate,
  • refinancing the costs incurred for housing purposes.

It may happen that we are already repaying a mortgage, for example, taken out to buy a flat and want to consolidate all our debts (in addition, we have, for example, a cash loan, car loan and credit cards), then we can use a mortgage consolidation loan . A mortgage can not be taken for the purchase of a new car, a luxury trip, etc. In this case, we could use a mortgage for every purpose. As in the case of a mortgage, the loan is secured by real estate.

The procedure for applying for a mortgage

The procedure for applying for a mortgage

The entire procedure for applying for a mortgage is much longer and more complicated than in the case of cash loans and loans. There are several basic steps that can be distinguished:

  1. Before you apply for a mortgage you must have your property selected.
  2. The bank will start analyzing the application only when all necessary documents are provided. Incomplete information, missing documents – all this extends the process of applying for a loan.
  3. The Bank analyzes the provided documents, examines creditworthiness and creditworthiness and makes decisions. During the analysis, the bank may ask for additional documents or explanations.
  4. If the decision was positive, the loan agreement is signed.
  5. The loan is disbursed by the bank after signing the notarial deed of purchase agreement (on the secondary market) and submitting an application for mortgage entry.

What mortgage documents?

In the case of a mortgage, the documents required by the bank is quite a lot. Although the credit process itself is the same, each bank has its own set of forms. Therefore, we can not send an application to several banks on the same form. Remember that the application from the bank, which we downloaded 3 months ago, does not necessarily have to be valid now. We distinguish four types of documents and forms that we present or submit to the bank.

As with any other loan, also here must be a document identifying the customer . This can be an ID card, passport or residence card.