Mortgages denied by the bank: here are the possible reasons
Only one thing is missing: the financing to pay it. And if the bank says no?
Finally you have found the home of your dreams. You are incredibly agree with the partner: there is a balcony that appeals to him, the big kitchen that she likes, a large terrace.
Why do they deny us a loan?
Have you ever wondered what could be the reasons why you can refuse a loan ? You can prepare all the documentation possible to buy your love nest, but to have the last word on the mortgage you are asking for, it will be the bank, no one else.
Before granting the sum requested, the bank will make careful evaluations on various aspects, such as your repayment capacity, reliability and punctuality of payments . Not only that: you must make sure that the property in question is suitable , or that there are no abuses or irregularities of any kind.
As a general rule , the repayment installment must not exceed one third of the monthly net household income. Therefore, the Bank may deem it advisable to check whether or not you already have other loans in progress, and to check how you behave in the payment of the related installments.
So let’s say that the reasons that can stop the granting of a loan by the bank may be different and cover both the property, which the “bank identity card” of the applicant, or: other excessively high loans already in place, family income insufficient, previous reports of delayed payments.
What to do to overcome a possible obstacle to granting the loan ?
Let’s try to find some solutions for the different cases listed above.
In the case of income already committed by other loans , the board is to extinguish existing loans by demonstrating through the so-called letters of resolution, the balance of the amount due. Self instead you see yourself rejecting the mortgage because the family income is not enough , there are several alternatives. If you can not take advantage of an additional guarantor, you can verify that the bank accepts a third mortgage , which would be the owner of the property that does not coincide then with the holder of the loan. Otherwise you can lower the loan amount or lengthen it.
And what if the bank does not trust because it has received reports of delayed payments from you ? Here, in this case you need to request cancellation and ask the bank for a new visa. Finally, it may happen that the property is not in order, and therefore the bank will not grant the loan. The owner will solve the problem. If you want a little advice: make a contract in the contract that relieves you from any financial commitment and that, in the case of a loan not granted, you will be returned the entire deposit . You never know …