The bank may reject the mortgage if it has incomplete or unreliable information about the borrower and the property. Chairman of the Committee for the Development of Financial Literacy of the Russian Banking Association Maxim Semov, an expert on the portal “Moifinance.rf” of the Research Institute of the Ministry of Finance of the Russian Federation, told socialbites.ca about this. Now he gave three more reasons why Russians should refuse their mortgages.
“If a bank requests a certificate from the place where you work, then you must provide such a certificate without any justification or evaluation of the conditions, methods and content of the certificate. You may need it just for show, but it should be there if the bank requests it. The package of documents regarding ownership must also be collected in full. “In case there is no information, a clear and reasoned explanation is needed,” he said.
Semov stated that incorrect information will definitely be detected at various stages of verification and will most likely be a reason for rejection. Therefore, there is no point in hiding any data regarding your property or finances.
The second reason is insufficient income.
“For example, a borrower with a family of three with a total monthly income of 100 thousand rubles will not be able to allocate 80 thousand rubles per month for loan repayment. The remaining funds are not enough to live on. The bank will refuse. The current loan burden should not affect the borrower’s life. “At the same time, debts related to loans for which the person is a guarantor are also included in the debt burden,” he said.
He explained that the bank can offer a range of solutions; for example, increasing the loan term while reducing the size of mortgage payments, transferring salaries to a credit institution. If the employer starts transferring payments to the mortgage bank, the mortgage rate can be reduced by 1 percentage point.
The third reason is bad credit history. For example, there were delays in previous loans.
Semov said, “You need to pay off your debts as soon as possible so that the information on this issue is reflected in your credit history and your credit score will increase.”
Fourth, if the property is not suitable, the bank may reject the mortgage.
“The rejection may be due to the fact that the selected real estate option is not suitable for the bank according to some parameters. There are several parameters and it is better to find out from the bank. For example, questions may arise in case of difficulties in registering ownership of an apartment or errors in registering inheritance,” explained the expert.
He recommended that all documents pertaining to the apartment be carefully examined together with the bank’s credit experts.
What awaits the Russian mortgage market? material “Newspapers.Ru”.
Previously happened It is known how many Russians will not be able to get a mortgage after the Central Bank’s decision.