Mortgage approval - how to get 100% approval of a mortgage loan

Real estate values are the most volatile thing in the world. Most often there is an increasing trend. It is almost impossible to keep up with inflation and market forcing.

It's impossible to accumulate. Saving by renting a house is generally a utopia. The most affordable way among all possible is to use a mortgage.

There are always more people wishing to get a mortgage than approved applications. What does it take to get a mortgage approved? This question worries all potential borrowers.

To whom are banks more willing to issue housing loans? What are their requirements and how to meet them? Is it possible to correct your credit history and what should your average monthly income be? You will find answers to all these questions in this article.

Standard bank requirements

Financial institutions are interested in receiving income from lending to the population. At the same time, they are not ready to risk their reputation and the danger of making a loss. Therefore, banks approach financial transactions as responsibly as possible, objectively assessing all risks.

Indicate the real amount of income

Banks are willing to take risks. We are ready to lend to borrowers with minimal requirements. Due to a simple mechanism. Increasing lending volumes reduces the degree of risk. For one overdue debtor, 3 new clients will come with accurate monthly payments. Therefore, it is profitable for the bank to take not ideal clients, but those who provide honest information and strictly adhere to payment schedules.

Do not indicate inflated amounts of income on personal income tax certificates. This information is easy to verify. Each mortgage manager has an approximate range of specialist income. If the average manager indicates an income of 120 thousand rubles, it is highly likely that the financial institution will make a request to approve the mortgage to the pension fund. If there is a discrepancy or incorrect data, the client will be blocked not only from the current bank, but also transferred to other partners for information. If initially the issue could be resolved positively (increasing the contribution and loan term), upon subsequent application the applicant will be refused in many branches. Why take the risk?

You need to learn the formula - it is profitable for the bank to lend. If you present him with introductory conditions, his task is to adjust your income level and social status to the financing conditions. There are the most flexible tools for this - moderating the size of the down payment or increasing the loan term.

Age restrictions

Young people are welcome everywhere, but not on the way to obtaining a long-term housing loan. The minimum age at which the bank will accept documents is 21-23 years.

According to most banks, and this is quite fair, until this age a person does not have a stable income and, which is also important, cannot manage financial resources wisely.

The favorite age limit for banks is 25-40 years. This category contains clients who can count on mortgage approval more than others.

There is also a maximum in this criterion. Usually this is 55 years - the period of retirement age . There is also the concept of an age limit. That is, if a person applies at age 50, the bank will approve a mortgage for no more than 20 years.

What are the minimum requirements for borrowers

Banks take the selection of borrowers seriously for mortgage lending, because it is important for them to enter into a loan agreement with a client who will ultimately pay off their obligations on time. After all, banks are not charities.

In the developed programs, lenders establish the proposed tariffs, terms of service and loan repayment. For this, he asks in return from the client to fulfill the established requirements. What is required for mortgage approval from the borrower:

age limits . The borrower will be a person over 21 years old, but not older than 65 years old, while at the time of registration the client must reach the minimum age, and upon return - not exceed the maximum. The older generation is considered in Sberbank (up to 75 years old) and Sovcombank (up to 85 years old);

restrictions on citizenship . Domestic banks work exclusively with citizens of the Russian Federation, although mortgages can be obtained by persons of foreign citizenship subject to registration and an official place of work in Russia;
Registration: preferably permanent. Also, some banks limit the range of borrowers by place of residence, registration and region of purchase of real estate;
provision of the required package of documents for consideration by the bank and subsequent registration of a mortgage.

The above is the minimum that a bank requires to approve a mortgage. But the list is not limited only to these conditions; the bank also cares about the “integrity” of the future client, so it checks:

credit history . The worse it is, the less likely it is to get approval for a mortgage;
official employment and income generation . Confirmed by a certificate, a copy of the contract or employment agreement;
salary sufficient to repay the loan . It is calculated based on a certificate of income (for employees, a 2-NDFL certificate is required as standard).

Attention! Confirmation of income and checking of credit history are mandatory procedures when deciding to approve a mortgage. Exceptions are possible for some banking programs.

Citizenship and registration

Russian banks prefer to maintain long-term credit relationships exclusively with citizens of our country.

The first and main requirement of the bank is that the borrower must be a citizen of the Russian Federation. It is advisable to have permanent registration.

But mortgage approval can also be obtained with temporary registration. Some banks have omitted this requirement. You can get a mortgage from VTB without having to register in the region where you apply.

In order for a foreigner to have a mortgage approved, they need permanent or temporary registration, as well as permission to work in Russia.

Your mortgage application has been approved – what next?

Surely, when you contacted the bank, you already found a suitable option. If not, remember that from the moment your application for funding is approved, its validity period is strictly limited - no more than 3 months (different institutions announce their own terms). During this period, you must submit an offer to purchase the selected option. Delay, increase in waiting time - you will go to the second round of approval.

Your purchase will most likely be approved automatically. It is necessary to confirm that the house has been put into operation and that all necessary title documents are available.

Attention!

Before starting financing and signing the contract, check the availability of additional payments - insurance coverage.
Most likely, the insurance will coincide with the term of the contract. Calculate her load on all payments. Before you move into your new apartment, it will be assessed. Such services are always performed by companies that work closely with a financial institution. It will not be superfluous to have your own assessment result - it must coincide with the bank assessment. The price for such a service is minimal - but you will know for sure that you are covering the real cost of the chosen housing. How to get a mortgage. Why are mortgages rejected?

What should the profession be?

One of the important conditions when considering an application is work experience . The minimum requirements that banks set for mortgage approval are at least 6 months of work experience at the last place of work, and at least 1 year in total.

Bank managers also focus on how often the applicant changed jobs.

If there are a large number of entries in the work book and there are dismissals on sensitive issues, the bank may consider the client unreliable and refuse a housing loan.

For which professions are mortgages closed?

Banks are reluctant to approve mortgages for representatives of the following professions:

Businessmen - entrepreneurs do not have a stable income. But managers of large enterprises who have had good and regular income for a long time can well count on mortgage approval.
Lawyers - people in this profession also have unstable income, except when they work for a company under a contract.
Realtors - and although representatives of this category often have a good income, banks find their earnings extremely irregular. In times of crisis, their income is even less stable. Therefore, getting approved for a mortgage will not be easy.
Judges - these people, by law, have personal immunity. The bank does not have the right to demand loan payments from them. Therefore, banks are wary of applications from representatives of this profession.
Professions involving risk to life - rescuers, military, racers. These people have a dangerous profession and are at risk of losing their ability to work, so banks are reluctant to approve mortgages for them.

Is there a difference between a mortgage and mortgage lending

For an ordinary person, these two concepts mean almost the same thing. But in reality these are somewhat different things.

A mortgage is a collateral secured by real estate. Mortgage lending is the process of obtaining funds that the bank allocates for the purchase of housing secured by real estate.

The signs of mortgage lending are as follows.

The money is allocated exclusively for the purchase of real estate, that is, the loan is of a targeted nature. The borrower has no right to spend these funds for other purposes.
A pledge serves as security. Typically, collateral refers to the property that is purchased on credit. However, there are some mortgage programs where the collateral can be other real estate owned by the borrower.
The deal between the bank and the borrower is long-term and is designed for 20-30 years. If there is free finance, the debtor can pay off ahead of schedule, but, as practice shows, it is difficult for ordinary citizens to save such a large amount to repay the loan.
In most cases, the borrower needs to pay a down payment for housing from his own savings, which is usually 15-20% of the cost of the property. This is a kind of guarantee of the client’s solvency, as well as an opportunity for the bank to quickly sell the collateralized living space at a reduced price if the borrower can no longer pay the debts.
By law, the borrower is required to insure his living space against emergencies. In case of natural disasters, fire, domestic gas explosion and other troubles, the insurance company will compensate for the damage.
The interest rate is lower than for consumer loans.
Credit institutions evaluate a potential borrower quite harshly. First of all, he must be solvent.
The property is registered in the name of the borrower as soon as the mortgage agreement is signed, but it is under an encumbrance (collateral). The borrower has the right to live in the apartment, but cannot sell it before paying off the bank.
If the debtor is unable to fulfill debt obligations, the collateral property will be seized and sold as soon as possible to repay the bank's losses.

Mortgage lending is beneficial for both parties to the transaction. The borrower receives the living space he needs as personal property, and the bank receives a solvent client who will not only return the borrowed funds (albeit in parts), but also pay the accrued interest.

But the bank is completely protected from losses and will remain a winner in any case, while the borrower can only rely on himself and must solve his financial problems on his own. If he cannot pay monthly payments on time, the bank has every right to take away the collateral housing and sell it.

What salary should be to be approved for a mortgage?

It is difficult to answer this question unequivocally. The credit institution considers each situation individually. It all depends on how long the mortgage will be issued, how liquid the collateral property is, what income the guarantors have and, most importantly, how much the property being purchased costs.

When calculating the loan amount and monthly payments, one general rule applies - the borrower's total monthly income must be twice the size of the monthly mortgage payment. The best option is not even 50%, but 40%.

Don’t forget that the bank will take into account all your expenses - deductions for other loans, alimony, utility bills.

How do banks approve a mortgage?

All banks have different times for considering a mortgage application; for example, at Sberbank, making a decision can take up to 6-8 business days.

This is due to the fact that the verification procedure includes several stages:

Automatic scoring. At this stage, the system checks the credit rating, the presence of other credit obligations, and the consistency of the declared income with future mortgage payments.
Security check. Employees of a special division of the bank check the accuracy of documents (certificate of income, copy of work book, etc.) and information specified in the application. To do this, they can call the employer or contact persons, as well as use public and proprietary databases.
Direct decision making. The bank evaluates the application based on many parameters (income level, past arrears, etc.) and makes a decision based on this.

After approving the application, the bank checks the property that will act as collateral for legal purity and assesses its liquidity (based on the report of the appraisal company and using its own methods). If the home you have chosen is acceptable to the bank as collateral, then the mortgage process continues. Otherwise, you will be offered to choose another property.

Solvency

The most important requirement that banks place on all borrowers without exception is solvency. The level and stability of income is directly proportional to the regularity and making of monthly payments on a housing loan.

To document and confirm your income to the bank, you need to submit a certificate in form 2-NDFL. A bank option is possible. Other certificates and documents confirming additional or main income will also be useful.

The main incomes are:

salary at main place of work;
pension;
income received from business activities.

Additional income is:

earnings from part-time work;
rentier income - from renting out real estate;
income from any other type of activity.

The monthly loan payment should be half the total family budget. If this amount comes out of all your income, then the bank will approve your mortgage.

Financial obligations such as debts, alimony, and other loan payments are deducted from your total income. The loan amount will be deducted from the balance.

Who is better to choose as a guarantor?

Mortgage approval is also influenced by the availability of liquid property (real estate, car, land); permanent accounts or salary card in the bank being financed; the possibility of attracting guarantors (co-borrowers) who will share with you the burden of responsibility for paying the loan.

A wife and husband cannot be co-borrowers only if their marriage contract does not provide otherwise.

In Sberbank, for example, the main borrower can attract up to 3 co-borrowers. However, when obtaining a mortgage with two documents, Rosselkhozbank does not allow the use of guarantors other than spouses.

Married family people are more trustworthy. This is beneficial in terms of total income. The moral aspect is also taken into account. A family man is considered a more mature and responsible person.

Credit history and its impact

In order to be approved for a mortgage, you also need a good credit history. Its complete absence is not an obstacle to obtaining a long-term housing loan. However, if the bank knows that the borrower is able to maintain financial discipline, this will be in your favor.

Many banks cooperate with the Credit History Bureau, an organization that contains all information regarding the credit histories of the population . Therefore, do not think that checking the so-called “all your ins and outs” bank will not be difficult. Nobody keeps this information secret.

If you are wondering whether a mortgage with a bad credit history can be approved, then each bank has its own requirements and depth of analysis of credit histories. Newly created or small financial organizations turn a blind eye to minor shortcomings, delays, and often do not have cooperation agreements with all financial institutions .

Your credit history was damaged due to the fault of bank employees who provided false information to the BKI, prepare a claim. If you yourself have ruined your credit history, take out several small loans from banks and repay them quickly and accurately. Perhaps, when approving a mortgage, the bank will pay attention to the latest BKI records.

It may also happen that you will be approved for a mortgage with a bad credit history, but in return they will tighten the conditions or require additional guarantees . Reputable banks, as a rule, do not turn a blind eye and clearly refuse to obtain a mortgage.

Banks with high mortgage approval rates

Which bank approves mortgages most often? This question is asked by people planning to buy a home. Below are some good options.

How a mortgage is approved at VTB

How is a mortgage approved at VTB Bank? His requirements for clients are few and not strict, so the chances are high. Requests are processed fairly quickly, and decisions are immediately communicated to applicants.

Probability of mortgage approval at Sberbank

Sberbank is a large bank that implements a lot of mortgage programs in Moscow and Russian cities. And since there is more choice, it is easier to find a good option and get approval, especially for beneficiaries applying for government support. But loans to others are also often approved if the requirements are met.

Other credit institutions with soft mortgage policies

There are other banks that are loyal to clients and often approve mortgages: DeltaCredit, Gazprombank, TransCapitalBank, Moscow Credit Bank, Vozrozhdenie. But it’s best to contact a salary bank or one with which you have worked successfully before. There will be more trust in you, and the percentage of approval will be higher.

Contact a broker, for example, who helps all clients and accompanies them at all stages of the mortgage.

What documents are needed to approve a mortgage?

To get your mortgage approved, prepare the following documents:

Passport and second identification document.
Certificates confirming income - 2-NDFL or other documents in any form.
A certified copy of the work record.
A copy of the employment contract - if there is a part-time job, then the contract for this job.
A copy of the tax return for the reporting period - to confirm other sources of income other than salary.
Diplomas of education, training certificates.
Documents confirming ownership of property, real estate, transport.
Confirmation of ownership of securities.
Copies of loan agreements taken earlier.

What documents are needed for the mortgage lending procedure?

Photo: https://pixabay.com/photos/business-signature-contract-962355/
Each credit institution has its own package of documentation for each mortgage program. You can easily find this information on the official websites of banks.

The potential borrower must provide:

application form;
passport of a Russian citizen or identity card for military personnel;
military ID for men of military age;
information about marital status and presence of children (relevant certificates of marriage, divorce, birth are required);
documents confirming official employment and stable income;
all necessary papers for the purchased property.

If the borrower belongs to the preferential category, then he must document his right to the benefit.

Useful tips on how to get approved for a mortgage

How can you increase your chances of success and get your mortgage approved? Here are some useful tips that may help you:

Identify yourself with the category that is most often approved for a mortgage - military, a loan involving maternity capital.
Choose the bank that you have already contacted - you have actively paid for utilities, taken out a loan before, and are receiving a salary;
Increase the down payment - savings inspire confidence on the part of banks.
Find a good agent - they will help you fill out the form correctly, tell you how to behave in the bank, and what amount to request. These are paid services, but the costs will be worth it, especially if you doubt your success.
Do not try to deceive the bank, especially in important or obvious things that are easy to check 3. Banking services have their own channels for obtaining information.

How to get your mortgage approved and increase your chances

Influencing a bank’s decision is a whole science, a real chess match. But it is still possible to achieve victory in a confrontation with the bank.

Here's what will help:

When meeting with a bank loan specialist, look neat and businesslike, in accordance with your position. There is no need to come in a robe. It doesn't hurt to replace your tank top, shorts and sneakers with a shirt, pants and shoes. If a person is untidy, they are unlikely to believe that he is a financial director. Imagine, even at this stage the bank employee has carte blanche - they can simply refuse you without even looking at the documents.
Understand your credit history. Negative posts will ruin your impressions. And it will not be possible to hide information. If it so happens that you had problems, tell the bank employee about them. Promise to make a large down payment.
Deception is the last thing you can do. Even a harmless trick, incorrect phone numbers can provoke a bank refusal. In addition, the information will be immediately sent to the BKI.
Apply for a real amount of money. After a personal meeting, a preliminary calculation of all loan costs will be made. You still can't outwit the bank. They will know all your income and all your expenses.
Having assets is good. Cars, apartments, offices, factories - proudly demonstrate to the bank all your material power. This will characterize your prosperity.
If you have unconfirmed income, we do not recommend hiding it. Tell the bank about all the income you receive. This could be part-time work, transfers, help from relatives, interest on deposits.

The approval process is very important. Therefore, consider all factors.

Helpful tips for getting mortgage approval

It is impossible to guarantee 100 percent approval of the application. The bank considers each application individually.

But you can increase the chances of a positive decision by following simple tips:

Verify your income as much as possible. For example, a gray salary can be confirmed by a certificate in a bank form, when receiving income from rental real estate - by an agreement and a tax return, etc.
Before submitting an application, make sure that there are no debts on fines, taxes, etc. Overdue debt to the state often becomes the reason for denial of a loan.
If possible, involve co-borrowers and guarantors. This will reduce the bank's risks. If you cannot repay the loan, the bank will turn to a guarantor or co-borrower.
Submit an application to the bank where you have already been served. If you took out a loan and repaid it without delays, then the likelihood of a positive decision on the mortgage will be higher. Banks also quickly approve mortgage loans to salary card holders.

Alfa Bank

from 6.5% rate per year

Amount: from 670 thousand to 20.6 million rubles.
Rate: 6.5 - 9.29%.
Duration: from one year to 30 years.
Age: 21 - 70 years.
Down payment: from 20%.

More details
Gazprombank

from 7.5% rate per year

Amount: from 500 thousand to 60 million rubles.
Rate: 7.5%.
Duration: from one year to 30 years.
Age: 20 - 65 years.
Down payment: from 10%.
Review of the application from 1 working day.

More details
Transcapitalbank

from 7.99% rate per year

Amount: from 300 thousand to 50 million rubles.
Rate: from 7.99%.
Duration: from one year to 25 years.
Age: from 21 to 75 years.
You can get a mortgage using one passport.
You can confirm your income with a bank certificate.

More details
Rosbank

from 7.39% rate per year

Amount: from 300 thousand rubles.
Rate: 7.39 - 11.14%.
Duration: from 3 to 25 years.
Age: from 20 to 64 years.
Down payment: from 20%.
You can attract 3 co-borrowers.

More details

How do you know if your mortgage will be approved?

After submitting your application and visit, the bank will make decisions on whether or not to approve you for a mortgage. Many people are interested in how long to wait for the bank’s decision. Usually it takes up to 5 days, sometimes more.

But how do you know what decision the bank made? All modern credit organizations care about the comfort and awareness of clients. Therefore, different services are offered. The electronic customer service sector has been developed.

There are several ways to check the status of your application:

personal visit to a bank branch;
phone call to the manager;
clarification online.

In the third case, you will need to first ask the bank employees whether such a service is offered. For example, Sberbank has it. You can find out whether your mortgage was approved or not in your personal account on the Sberbank website.

You will need to know the application number assigned when transferring documents to a bank employee. This digital value can be found in the second copy or in the “Credits” section of the Internet service.

To find out whether the mortgage was approved by each of the listed methods, you will need to know the application number that was assigned when the documents were handed over to the bank employee. The digital value can be found on the second copy or in the personal account of the Internet service in the “Credits” section.