Buying an apartment is one of the most important decisions in life. Few, however, have enough money to buy them for cash, which is why many Poles decide to support a mortgage, which is a rather complicated financial instrument.
Good Finance, an independent financial advisor, writes about how to easily and safely go through the process of buying an apartment for a loan step by step.
Meeting with an adviser and checking creditworthiness
Before we find our dream property, it is worth checking your creditworthiness first to find out what expenditure we can afford. The financial advisor, who has the offer of all banks, will help you best.
Thanks to this, you will be able to choose the one that will be most beneficial for you. In order for the statement to be complete, it should contain all components of the loan and the costs associated with taking it.
In addition to information about the maximum creditworthiness, costs and installment amount, the advisor at the first meeting will discuss the entire procedure of obtaining a loan, determine the approximate time to obtain a credit decision and provide a list of necessary documents to complete the applications.
Finding and choosing an apartment
With the knowledge of your creditworthiness and borrowing costs, you can start looking for real estate. It is important to define your priorities at this stage, i.e. whether it should be an apartment from the secondary or primary market, in which location (city area) is to be, what are our requirements for infrastructure (public transport, schools, shops) e.t.c.
Knowing your expectations, it is worth starting your search by reviewing industry advertisement portals on which both private individuals as well as real estate agencies and developers are advertising.
It is worth taking advantage of the help of a real estate agency that prepares real estate offers tailored to customer preferences and guides them through the entire purchase and sale procedure. It is especially worth using the help of an experienced broker when buying real estate on the secondary market because there are often situations in which the knowledge of specialists proves to be very helpful.
Signing the preliminary contract
After deciding on choosing an apartment, the next step is to sign a preliminary contract or a development contract – depending on whether it is a secondary or primary market (and in the latter case also how advanced the construction is).
If it has been a long time since your first visit with a credit advisor, I suggest contacting your advisor before signing the contract to re-verify and confirm your creditworthiness. It may also turn out that in the meantime another bank, which was not taken into account, introduced a special offer and it is also worth considering it when applying for a loan.
A good adviser should at this stage suggest what terms and provisions should be included in the loan agreement. The idea is to fit in time to obtain a decision and create a contract that protects the interests of the buyer. That is why it is so important to decide who is entrusted with the matter of your loan.
Analysis of the loan application by the bank
Having a complete application, the advisor passes it to the bank and a credit analysis begins, which can last from two to six weeks (depending on the bank and the complexity of the topic). Sometimes, during the analysis, the analyst will ask for additional documents needed to make the decision.
The application analysis consists of three parts: economic, legal (real estate issues are analyzed) and technical (real estate valuation by the bank and collateral assessment for the bank).
During the analysis of the application, a property appraisal is made by an appraiser cooperating with the bank or an external appraisal is attached. The choice of options and costs is presented by the adviser at the stage of choosing banks. If all three stages of the analysis pass, a positive credit decision is issued for the application.