Mortgage loan in a nutshell!

A mortgage loan is most often a long-term obligation to a bank, secured by a mortgage established for the lending bank on the right of perpetual usufruct or ownership of real estate.
A mortgage loan is a set of different types of loans based on an entry in the land and mortgage register in section IV. We distinguish between a housing loan, a construction loan - mortgage, a consolidation loan and a mortgage loan.

It is worth starting to save money as early as possible for the so-called own contribution, which is currently 20%. It can be reduced in some cases to 10% and for costs incurred at the beginning such as:

• bank's commission for granting a loan,
• unemployment insurance,
• various transaction and court costs on the secondary market amount to approximately 5% of the property price.

To sum up, it is good to have an amount of approximately 23-27% of the property price.

Remember if you have ever had problems repaying your liabilities, it is precisely about building a positive credit history in BIK, the "Credit Information Bureau". As a person who has a good credit history, you become credible to banks. However, if you remember that you had any debts, it is worth checking the payment notices and clarifying them, if necessary.

Another thing is to take care of your creditworthiness
Of course, as you know, the best way to save is to earn. Here, the most important thing is our salary, which we receive every month, or income based on the KPiR (income and expense book) when we run a sole proprietorship. To sum up, your creditworthiness depends mainly on the income and expenses in your household.

Taking on a commitment for many years can be a double-edged sword. Typically, people who act according to a previously determined plan are more effective in implementing it. It is therefore a good idea to calculate how much credit you can afford, what installments you are able to pay and what non-credit costs you have to incur. It's worth asking yourself these questions in advance.

Is it worth using the help of a credit advisor?
Using a trusted advisor can help you save a lot of time and money. There are over 20 different banks on the market, so it may take us several days to obtain information from each one. Using a comparison engine can be very misleading, because the comparison engine only gives us a preliminary offer. Banks also use products such as: credit card, monthly inflow of funds to the account, "salary", personal account, etc. These are credit-related products to which you will have to agree to use a specific bank offer. If we have free time, we can independently explore offers on the market. Remember that a loan is an individual product. The conditions in some banks, despite the attractive offer, may be impossible for you to meet.

What to do once you have selected several offers that satisfy you the most?
After analyzing all available offers according to our possibilities and expectations, complete the required documents and submit loan applications to selected banks.
The current practice is to submit three loan applications. You may encounter an action that is intended to protect us against a situation in which we will be refused in three cases. We can send the first application to the bank from which we are sure that we will receive a positive decision, the next application to the bank that has the best price offer, the next bank should give us the conditions we expect, e.g. early repayment, etc.

After a positive decision from the bank, read the loan agreement and sign it.
Of course, the payment depends on meeting the conditions for disbursing the loan.
Remember about the conditions you must meet, e.g. depositing PLN 2,000 into the account every month.
Each bank's offer has its own different conditions, it is worth remembering and meeting them, because when signing the contract, we consciously agreed to all its provisions.
It may happen that if some condition is not met, the bank will increase our margins, which will affect the amount of the repaid installment.