To acquire your own housing is the dream of every person. However, the financial side of most people can only take a mortgage. But here, not everything is so smooth. To get the necessary amount, you need to meet all the requirements of the bank. Often, credit organizations refuse to issue funds for the purchase of an apartment. Why?
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Why you may be denied a mortgage
The economic situation in the country is not as stable as we would like. And financial institutions are simply afraid to risk their own funds. But this is not the only reason for refusal.
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Much depends on the characteristics of the client:
- A damaged credit history when a borrower has delayed payment or the bank had to return its funds through the court.
- Low basic income, having children, and lack of part-time jobs. All this can be regarded by the bank as unreliability.
- Providing false information about yourself.
If such facts are revealed, for example, a fake work book or a certificate of employment. A potential borrower is 100% refused to provide a mortgage loan. Any financial institution, before approving a loan, carefully checks the data provided.
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- Selected housing also matters.
With a higher probability, the bank will refuse to provide a loan to buy a room in a communal apartment or an old-built house. Since the real estate purchased at the expense of the bank, there are a number of requirements. Because until the full repayment of the debt, it remains secured. As a rule, financial institutions do not lend illiquid transactions.
Of course, this is not the whole list of reasons why a borrower may be refused to issue a mortgage.
What else could cause a failure
Most often, financial institutions prefer not to tell the borrower about the reasons, and this will forever remain a secret shrouded in darkness.
Parents with many children who did not apply for benefits also fall into the risk zone. In the case of applying for a mortgage, they need to be prepared for the fact that the bank decides not in their favor.
A failure may also be the availability of loans to other financial institutions. In this case, you must close all debts or have an impressive stable income. But this is far from all:
- Most likely, they will refuse a housing loan if the place of work does not inspire confidence in the bank;
- If the borrower has a small working experience;
- Oddly enough, a disappointing decision can also be made in relation to citizens with a large, constant income. The reason for refusal is a high probability of early repayment of the loan. In this case, the bank loses financial gain.
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In almost all common cases, exceptions are possible. One hundred percent refusal on a mortgage loan will be received by citizens with a criminal record.
About the three main causes of failure
No serious credit institution will give a mortgage to citizens who have repeatedly delayed monthly payments without good reason.
Those who do not have a credit history at all will also be denied a mortgage loan. The bank cannot entrust a large sum to a person about whom it knows absolutely nothing. First, the borrower will have to earn a credit reputation by taking a small loan and repaying it on time.
The security service checks all information about citizens who have applied for a loan.Therefore, the minimum amount of the down payment will alert, the bank will consider them insolvent in the future. A clear refusal promises if the amount of the first installment is taken from another bank.
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Despite all the difficulties, a mortgage is in demand among Russians, because for the majority this is the only chance to become owners of their own housing.
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