CreditforForeigners.pl - mortgage in poland for foreigners » 21 common reasons for bank refusing a mortgage loan

16. Unreliable developer

The credit decision depends on the positive result of all partial analyzes. Your financial situation may be well above average. Your credit history can be flawless. However, the selected developer does not enjoy a good reputation. Historically, it has missed deadlines. He is reported as an unreliable payer in business databases. There is a mortgage in the land and mortgage register that should be repaid long ago. The construction documentation is incomplete, illogical, incorrect, etc. There can be many reasons. A substitute investor, i.e. a developer, is an entity that may cause the bank to issue a negative decision.

17. The property is located in an area with low sales liquidity

A cottage with access to the lake, where there is no living soul within a radius of several kilometers. Buying a plot away from civilization. Apartment 150 m in the area where there are only flats, max. 50 m. Loft-type apartment in the building under the care of the conservator. Properties of this type are not at all attractive for banks as collateral. Banks are very pragmatic. When granting loans, they estimate the risk and plot a scenario of what can happen if you stop paying back the loan and they become 'owners' themselves. What matters for banks is the speed of recovering the paid-in capital. In the case of such properties, there is a risk that it will take longer than usual. A workaround for this is to secure on a standard property. Alternatively, another option is to increase your own contribution, so that the bank, selling the property through a forced sale, will not be a loss.

18. Errors, inaccuracies or false certification in the application

The application should be filled in truthfully, carefully, without any special deviations from the data provided in the documents. Very important are personal and financial data, credit obligations, including company ones, the number of people on the farm, education, etc. If the analyst finds that they are not true, they may issue a negative decision without the right to appeal. To miss the truth is not an innocent oversight. The bank may treat such a situation as concealment or confirmation of untruth in order to obtain financial benefits. It is worth knowing that submitting false information is punishable by law, which was strictly defined in Art. 297 of the Penal Code (Act of 6 June 1997).

19. "Mythical" banking scoring

You applied for a loan two days ago, and the employee already contacted you today, saying that unfortunately the credit decision is negative. Something fast… Hmmmmm. The employee doesn't know why. He explains that this is the first time he saw something like this, although he had previously assured that there should be no problems. Each of the advisers working for a long time encountered something like this. There's a good chance that bank scoring is the culprit. What is this? Well, humanly speaking, bank scoring is you and your data registered in the banking system. Scoring is a scoring of your application. This is the first step in verification. For some, it is also the first impenetrable wall. Bank scoring is sometimes incomprehensible. He can wrongly assess the chances, because the scoring algorithm is the human responsibility. Scoring can be variable. Depending on the moment of submitting the application, the bank may tighten the requirements or loosen them.

20. "Too high risk" of the bank

HA! Has anyone ever had that? How does it feel when you take a loan for granted and the bank says the risk is too high? Okay, but where does this mysterious "too high risk" result? “Unfortunately we can't say. The decision is negative. Too high risk. " Well, you just have to acknowledge it, because you can't change it. It just happens that banks turn their noses and choose "the best clients". It happens that they do not want to grant mortgage loans (there are indeed moments like this), but officially no one can admit it. For the simple reason - it would be very difficult for the bank to return to sale in x time.