When can a bank refuse a mortgage loan?

Moving decision made. Hundreds of properties viewed and selected from among them are the one and only dream apartment. Most people feel excited at the thought of a new apartment. Even those who do not like moving, packing and unpacking will confirm that buying a property is a truly unforgettable experience. Once the apartment has been chosen, it’s time to think about finances. Quite often, this problem is solved in one way – with a loan. Although the decision about it is postponed to the end, it is worth remembering that it is worth preparing in advance for making this important financial declaration. It is possible that the bank will reduce the loan amount or … refuse to grant a mortgage. Such a refusal can have many reasons, and banks do not always argue their decisions.

Employment contract

Employment contract

You don’t have an indefinite employment contract? For the bank this can be a big problem. If you have a fixed-term contract, order or work, your bank may refuse to grant you a loan. Many institutions also set such “backward limits” regarding employment. If you do not meet them, you can try to provide a work certificate, promise of employment, annex to the contract.

According to banks, similarly unstable employment is running a business. Very often, attention is paid to net income and the period of activity (from 12 to even 24 months). In addition, if your company is registered outside the country – you may also encounter difficulties in obtaining a loan.

It is also quite often found in employment mediation. This kind of work, which involves the delegation of an employee by a temporary employment agency to perform specific tasks, can make you unbelievable for the bank. Banks consider this form of employment unstable and this will certainly be the reason for refusing a mortgage.

Income counts

Income counts

Your salary is above the national average and you still got a denial? Perhaps the whole secret is that you have already incurred obligations. Do you pay installments for a car, kitchen or exotic vacation? Yes, this may be the reason for the refusal, because you may not be an attractive customer for the bank. Interestingly – those who have even a minimum income but who have no current obligations are better looked at.

What instead of a mortgage?

What instead of a mortgage?

So what can you do to get money when your bank refused you a mortgage? First of all, don’t break down and remember that banks don’t end the world. It is worth trying to change your financial situation and the form of the contract over the next years. The only solution that allows us to bypass unnecessary formalities are companies that grant loans. In this type of financial companies, it’s much easier and above all faster to get money in hand for the necessary expenses associated with an old or rented apartment. The Titania website is highly recommended, here you will not encounter complicated procedures – all you have to do is fill out a short application and accept the terms of the selected loan. The decision to grant funds is made within a few minutes, and the money immediately goes to your account.

Can I take a loan if I am unemployed?

 

The Polish banking system is very restrictive towards potential clients who want to take out a loan or credit. “Can I take out a loan if I am unemployed?” Many people who are not permanently employed but who earn regular income differently are wondering. Almost each of us from time to time needs extra cash due to unforeseen expenses related to even a car breakdown or the need to renovate an apartment. Do you have a chance for financial support as an unemployed person?

What do banks pay attention to when deciding to grant a loan?

What do banks pay attention to when deciding to grant a loan?

From the bank’s point of view, the process of granting a loan, credit or credit card to a customer involves estimating the level of risk that the debt will not be repaid. No bank approaches this obligation liberally. The institution’s dream client is a person employed under an indefinite employment contract. Even the level of earned income goes to the background. Loans for the unemployed, so it is impossible in practice, because even people earning in the form of their own business activity or on the basis of civil law contracts have huge problems with obtaining it. The answer to the question of whether an unemployed person can get a loan is: no. At least when we are looking for her in a traditional bank.

Can I take a loan if I am unemployed? Alternative sources of income

Can I take a loan if I am unemployed? Alternative sources of income

The unemployed are not completely in a lost position. There are trusted lenders from the non-banking sector operating on the Polish market, which have a much higher level of trust towards their potential and current clients. For an unemployed person to be able to get a loan, they only need to achieve an adequate level of solid income that is not wholly absorbed in monthly expenditure.

Where do the unemployed most often earn an income that gives them a chance to get a loan? A classic example is the rental of real estate – apartments or business premises. Many unemployed people, in fact, have a lot of assets that they multiply, for example, by owning shares and dividends. Income includes scholarships and donations. In addition, many people working abroad or in the shadow economy cannot formally document their employment. The advantage of all the unemployed, but still earning is the history of their personal bank account.

Loans adapted to the needs of the unemployed

Loans adapted to the needs of the unemployed

Proven non-bank institutions operating under Polish law, such as Clarissa Harlowe, easily grant loans to the unemployed by verifying their income and expenses. All you have to do is fill out a short form, select the amount you are interested in and submit an application for a loan for the unemployed. The decision should be made within a few minutes. It is undertaken by people, not banking IT systems. The whole process takes place over the internet, and the money that you can spend on any purpose is immediately sent to your bank account. Clarissa Harlowe has had the opportunity to support hundreds of thousands of Poles to fulfill their dreams and solve current financial problems.

Loan without verification in BIK – on what terms is it granted and is it secure?

 

Many people experiencing financial problems are afraid of verification in BIK before taking a loan from a bank or other financial institution. Is that right How does the BIK database work and what is it for? What are loans without BIK and what are the consequences of taking them? Is there a better alternative?

What is BIK and what is it for?

What is BIK and what is it for?

The Credit Information Bureau is an institution created by an alliance of banks operating on the Polish market. As a rule, all information on consumers related to financial services that they use is sent to the BIK database. Each loan, credit, overdraft limit or credit card, as well as installment purchases, are assigned to the individual customer account.

Timely repayment of liabilities (in practice not exceeding 30 days of delay) is associated with a positive entry that helps to improve the individual ranking of the consumer. Any delay lowers him. On this basis, banks, as well as many non-bank lending institutions, assess consumer credibility and creditworthiness. Each customer can ask BIK to create an individual report about themselves.

Loans without verification in BIK

Loans without verification in BIK

On the Internet we will find many offers for loans without verification in the BIK database. Private lenders as well as pawnshops operate on this principle. The difference between traditional and mentioned loans is that in the latter case the potential lender does not use the BIK database during verification of the client’s financial capacity, and usually also typical debtors’ databases, such as the National Debt Register and the Economic Information Bureau.

Is it worth using these types of loans in case of financial problems, sudden expenses or occasions in the form of a unique price promotion for even a vacation? Not necessarily. A loan without BIK is a service created for seriously indebted persons who have no chance of receiving a loan from a bank or loan institution due to the negative history in the Credit Information Bureau database.

From the lender’s point of view, providing such support to a client is naturally associated with a higher risk. The risk premium is higher profit in the form of horrendous interest and commissions. In turn, the loan agreement may also contain unfavorable and unclear provisions – often a trap for people who in an act of desperation reach for such a solution, as a result of which they are actually in a spiral of debt.

Is it worth using these types of offers

Is it worth using these types of offers

Even if we have unpaid liabilities, this does not mean that our situation is bad enough not to have a chance to pass the verification of creditworthiness in a bank or non-bank loan institution. It is worth acting quickly because time is to our disadvantage. Non-bank loans differ from traditional ones by the fact that we do not have to undergo complex verification and provide many documents confirming income and professional situation. In case of doubt, before applying for a loan, it is worth asking BIK for an individual report.

What is a replacement loan?

If you have heard about the replacement loan and still do not know what it means, stay with us because at Fundfind Finance we do not want you to continue with the doubt; since it is a term that you might need to know at some point in your life.

 

Refactional loan: what is it

Refactional loan: what is it

A replacement loan is used in the construction, repair or conservation of real estate sectors. It is associated with these sectors because it is usually used for the acquisition of machinery or operating expenses in industrial, agricultural or livestock sectors.

To understand it better, after making the request for a refactional loan, the beneficiary undertakes to invest the loan money received in movable and immovable property that he needs for the development of the activity.

According to the RAE, a replacement loan is a type of credit that comes from money invested in manufacturing or repairing something for the person to whom it belongs or others who are interested in it.

That is, the creditor of a refactional loan executes the work in the property or supplies the necessary elements to carry it out. So it can be the builder of an industrial building or a company that has just made some reforms. These are some examples.

One of the peculiarities is that the replacement creditor has privileges over other creditors. This is because his money is what has made construction possible or, thanks to him, the value of the property has increased.

 

How is it different from a conventional loan?

conventional loan?

As we say, a replacement credit is characterized by its purpose, because it helps improve the production capacity of a company or renew its assets. Therefore, given its purpose, it is usually used in industrial or agricultural sectors, not in personal finance.

Likewise, as we already told you, your applicant agrees to invest all the loan money in movable and immovable property necessary to carry out his activity. So you should do it this way.

It has neither the same characteristics nor the same requirements as a conventional loan, since it promotes the renewal of the fixed assets of a company. Also, the return period is usually about 7 years, although it depends on the financial entity.

 

Are there requirements to apply for it?

money loan

Normally, to apply for this type of credit, a series of requirements must be met. That is to say:

  • Request an opening contract
  • Have a checking account at the Entity that grants the credit
  • Go through a Credit Study to check your creditworthiness

However, keep in mind that the specific requirements are specified by the bank in which you are requesting the replacement credit.

 

How to know what type of loan I need?

money loans

It is normal for you to have doubts about the loan you need to contract. However, if you are a private individual, a personal loan could be the financial product that best suits your needs.

In the case that you are a company and would like to make some renovation or buy furniture, we could be talking about the request for a spare loan.