Stages of mortgage lending Mortgage step by step

To get a mortgage , you need to dedicate a lot of time and costs. Typically, in such a case we are dealing with large sums of money and, therefore, the banks very carefully examine all documents and slowly carry out the procedure. This is to protect them against the risks associated with the possible delay or no repayments the loan taken.

The first step of each applicant is submitting a bank, an application for a mortgage loan . It is accompanied by a number of documents that are required by the bank. Typically, these include: a certificate of employment and the amount received income, bank statement confirming the proceeds to the account of the last few months, declaration of assets. Required will also documents that are necessary to establish a land registration. Therefore, you must submit a current copy in the Land Register, as well as the current real estate appraisal that will be collateral for a loan. In case the applicant wishes to buy a property, you must also provide confirmatory act who owns it. Banks sometimes require other documents, but it is no longer dependent on an individual approach to the customer.

Once all the documents are already in the bank, starts the procedure in which the loan application. During this time, the ability of the applicant's credit and authenticity of all documents. After analysis, it appears the decision to grant a loan or reject the application. In the latter case, the bank may apply, for example, to increase the security for the loan, or to reduce the amount of the loan. If the person applying for the loan meets these conditions, the decision can be changed to positive.

When the application is assessed positively, you can proceed to signing the loan agreement, together with all attachments. When the matter is already settled, you should make an entry in the Land Register of mortgages in order to establish a secure mortgage . Once this formality is made, the borrower can finally enjoy the end of the process. As you can see it is quite long it may take even more than a month.