In many cases, lending is the solution to move faster in the much desired home. We know, it is a big step and involves a lot of responsibility. Then, probably, you don’t have much experience with mortgage loans. Through this article we want to answer as many questions or doubts that may arise on this subject.
Where to begin?
There are two ways, either you start looking by yourself a credit solution going to as many banks as possible, or you work with a broker who will do everything for you. He is paid by the bank you choose. Choosing the second option, you gain time, and you will have the certainty that you choose a loan having full knowledge about the market (about the offer), but also about the clauses. h4l collaborates with Kiwi Finance and has a designated broker – Ștefan. To get in contact with him use the Contact section.
Below we describe the steps to be taken in the lending process with Ștefan’s help.
The first step is to find the right bank for your needs. Not every bank gives credit to anyone and under any conditions. Therefore, it is important to see, first of all, which banks you are credible with. Then, from these banks you can choose the one that fits you best and that meets your conditions.
Let’s say you have now a short list with 3 banks. It is time to see the comparative offer to determine which one to submit the file to. For that, you need to do a prescoring and to receive a written offer from each bank that will include, besides the installment, the total loan cost, along with other fees and taxes associated with the loan.
You will make these first 2 steps with Ștefan, your broker. You will have to sign the documents and offer the required information for prescoring. Then, Ștefan will fill in the documents, make the offer to the banks and prepare an Excel document with comparative offers.
Financial analysis. Checking your income eligibility. The bank makes sure you can borrow the requested amount.
Ștefan will fill your loan application and other forms, but just like in prescoring, a few signatures form you will be necessary. Next, Ștefan will submit the file for you and will ask for a daily status update. You can even submit the file to 2 banks in parallel. Depending on the context and if needed, he will be able to support your file in the bank.
Any additions that may come from the bank will be solved initially by email and at the end your physical presence will be required. That means you only go once to the bank instead of 2-3 or more times.
Legal approval or verification of the property. The bank makes sure that the purchased property is good to take as warranty.
After you receive the financial approval, you will have to submit all the documents of the property you are buying. Don’t worry, Ștefan will help you here. All the documents will go from Kiwi Finance, through Ștefan, to the bank you have selected. You will be notified as soon as the property has been approved positively.
Depending on the bank, the property evaluation and legal approval can go in parallel or one after another. Either way, they are both mandatory.
The evaluation request will be made by the bank or by the broker, and you will establish, together with the evaluator, the inspection date. He will send to the bank the evaluation report within a maximum of 5 working days.
Once it has been submitted, the bank approves it. Considering that the bank gives 85% loan of the minimum between the assessed value and the pre-contract value, if the assessed value is smaller, it will be necessary to supplement the difference from your own sources.
The final step is for the bank to take all the documents and give the final answer. It is the stage in which the bank reviews the amount of the loan, which depends on the requested amount and the evaluation, the loan period (which can change depending on how long the lending process lasted), as well as the conditions to be met (if there are any). When Ștefan receives the final approval, he will let you know and will start the next two stages: property insurance (if you don’t have already someone to work with) and setting the signature details.
All emotions are gone, the loan has been approved. Now you have to sign the contracts. Before that, as we said above, there is a small step to take: property insurance. It is about Natural disaster insurance policy and optional insurance (which is required by the bank).
The last step consists of setting a date and signing the sale contract, loan contract and mortgage contract.
Don’t forget that you have to own an account with the lending bank in order to pay the installments!
These are, at large extent, the stages of getting a mortgage loan. Of course, there will be variations depending on the bank you choose and your actual situation. You can also find useful information about the elements you have to keep in mind in the article 13 key points about mortgage loan. If you want to see exactly on your situation which bank fits you and under what conditions, you can contact Ștefan.