We have prepared a series of recordings for you.
We want you to come to the meeting with an outline in your head of the area we are going to cover. You will find on our platform videos that address the most important, fundamental issues of taking out a mortgage. Some of them relate more to you when it comes to, for example, the issue of creditworthiness itself, some of them develop other threads, less universal, but they should also be exhausted at the very beginning. We want you to have a certain foundation when coming to the meeting so that it is as productive as possible for you – we respect your time. We invite you to watch and possibly ask questions already at the meeting.
Creditworthiness Assessment
The first pillar is evaluating your financial capacity. This involves examining your income, financial history, and current financial obligations. Your creditworthiness is a critical factor that banks consider, as it determines your ability to repay the loan. Here’s what this assessment typically includes:
- Income Verification – banks will verify your income sources, whether it’s from employment, business, or other means. They will look at your employment status, the stability of your job, and the size of your company.
- Financial Obligations – existing loans, credit card debts, and other financial commitments are considered. The debt-to-income ratio (DTI) is a key metric here, which compares your monthly debt payments to your monthly income. Ideally, your DTI should be below 50%.
- Credit History – your credit report from the Credit Information Bureau (BIK) will be reviewed to check your past credit behavior, including any late payments or defaults. A clean credit history increases your chances of getting approved.
Calculating creditworthiness is relatively straightforward and can often be done within 1-2 hours using various banking calculators. However, each bank has its own criteria and may weigh factors differently, making this an important step to get right.
Collateral Evaluation
The second pillar involves assessing the collateral that will secure the mortgage. This could be a plot of land, a house, an apartment, or a commercial property. Here’s what this stage entails:
- Property Valuation – the property must be appraised to determine its market value. This is typically done by a professional property valuer who will provide a detailed report.
- Legal Status – the property’s legal status is checked to ensure there are no disputes, encumbrances, or other issues that could affect its value or your ability to use it as collateral. This includes examining the land registry and ensuring there are no existing liens or claims against the property.
- Loan-to-Value Ratio (LTV) – this ratio compares the loan amount to the property’s appraised value. Ideally, the LTV should be less than or equal to 80%, meaning the loan should not exceed 80% of the property’s value. This reduces the bank’s risk and may result in better loan terms for you.
Risk Assessment
The final pillar is the bank’s risk assessment, which includes scoring your application and evaluating the overall risk of lending to you. This involves:
- Credit Score -your credit score, derived from your credit history and current financial situation, plays a significant role in this assessment. Higher scores indicate lower risk to the bank.
- Economic Analysis – banks will analyze your overall economic situation, considering factors such as your education level, marital status, number of dependents, and the nature of your employment or business.
- Document Verification – banks will verify the authenticity of your documents, including income statements, property valuation reports, and other supporting materials. They may also request bank statements to review your spending habits and ensure there are no red flags, such as high gambling expenses.
Why you should consult your situation with our experts?
Every financial situation is unique, which is why an individual approach to choosing a mortgage loan is so important. Our assumptions are only a simulation, and your conditions may differ. That’s why we encourage you to contact our experts who will:
- Analyze your individual financial situation
- Find the best loan offers available on the market
- Help negotiate with the bank
- Provide support at every stage of the loan process
By working with us, you can be sure that the selected mortgage loan will be perfectly tailored to your financial situation and future plans.
Contact Us
Consult your situation with our Experts. Take advantage of our knowledge and 16 years of experience to make the best financial decision. Remember, working with us is completely free of charge!
Call us on +48 12 352 12 12 or fill out the contact form on contact page to schedule a free consultation. We are here to help you!