“You need to prepare for a trip to the bank, like for an interview, every detail is important.”
Most Russians can improve their living conditions only with the help of a mortgage, whether preferential or market — it’s not so important . However, in recent months, borrowers are increasingly less likely to receive bank approval. Analysts told MK who is most often denied a mortgage and why, and what is important to do before submitting a loan application in order to be sure to receive approval.
One of the main reasons for refusal is a bad credit history: a confirmed fact of violation of payment deadlines, debt load, frequent contact with microfinance organizations. However, the complete absence of loans may also have a negative impact on the bank’s decision. At the same time, if a mortgage is issued with the involvement of a co-borrower, it is important to make sure that his credit history is also impeccable.
Sometimes a credit history turns out to be damaged due to the fault of the bank — due to technical errors in data transmission, violation of deadlines for providing information, or attributing someone else's debts to the borrower. There is also fraud. Theft of personal data by criminals, issuance of loans and microloans fraudulently, alas, is not uncommon, and consumers do not always find out about the fait accompli on time, if at all.
To avoid negative consequences, it is necessary to monitor your credit history in advance. You can do this yourself and for free at the Credit History Bureau (BKI). In case of late payment, it is necessary to promptly pay off the debt, and if the bank itself made a mistake, you need to ask to correct the inaccuracy. If your credit history has suffered due to the actions of fraudsters, you should contact the police.
Another common reason for refusal is unpaid utility bills and fines. You can find out more information about them in “State Services”. You must pay off your debts before applying for a mortgage.
The decision of specialists is most often influenced by the large amount of unpaid fines or housing and communal services. If you are a careless person in relation to expenses that do not hit your pocket hard (and monthly rent or a car fine rarely exceed 10 thousand rubles), then will you be able to accurately pay mortgage payments of 50-100 thousand? But even if the debt is several hundred rubles, it is better for the borrower to repay it on time in order to give the bank an additional reason to be convinced of its integrity and commitment.
The third reason for refusal of a mortgage is related to the work activity of the borrower, in particular, the lack of a permanent official place of work, insufficient work experience or income level.
You can find out what income you need to have to get a loan using a mortgage calculator. For example, when purchasing an apartment worth 12 million rubles under a state support program with an 8% rate and a down payment of 50%, a Russian must have a minimum monthly income of 62 thousand rubles with a regular payment of 44 thousand. Obviously, the chance of mortgage approval increases when the borrower's salary is higher or if a co-borrower is involved.
The appearance of the consumer plays an important role. Some banks literally “meet you by their clothes” and evaluate the neatness and behavior of a potential borrower. A wrinkled jacket, unwashed shoes, and dirty hair of a client do not encourage financiers to cooperate. The bank representative, of course, will not make a direct comment, but he will put a “tick” on the unspoken list of minuses. Therefore, you need to prepare for a trip to the bank as if you were going to an interview, in order to once again demonstrate your solvency and reliability.
— Even if you are denied a mortgage, you always have the opportunity to send another application, including to another bank, — recommends Elena Mishchenko, head of the city and country real estate department of the NDV Supermarket Real Estate company. — If you can’t figure out all the nuances (establish a credit history, increase your income, and so on), and solving the housing problem is urgent, it is recommended to consider a cheaper real estate option or another method of purchase. For example, you can use an alternative deal on the secondary market, sell your property or take out a consumer loan to get additional money and purchase a home for cash.
The latter option, however, is best used only in case of urgent need. If you take out loans other than your mortgage, you can end up in debt bondage. And getting out of it without the prospect of increasing your earnings will be very difficult or even impossible.