Mortgage credit: what is it, how long does approval and why do you need?

You probably heard of the mortgage loan, but do you know exactly? In the following article, we will describe in detail all the information necessary to completely understand the mortgage loan, but also as you can access if you wish.

What is a mortgage loan?

The mortgage loan is a loan intended exclusively for a house. Through this, you can buy a house, but you can use it for its construction or renewal. What defines the mortgage loan is the mortgage, which is placed on the building for which the credit has been created or on another. This mortgage represents the guarantee for the bank and the building in question cannot be sold until the loan is repaid.

Usually, the mortgage loan is one who extends for a long period of time, for example 30 years. And like any credit, his owner has the obligation to pay the monthly rates, in the conditions established in the contract with the creditor.

How long does it take the approval of a mortgage loan?

The period of approval of the mortgage loan varies from one bank to another. This can be influenced by the following factors:
• The internal procedures of the bank: the bank must analyze the documents presented and approve at the branch or centralized level
• the credit value: the bank must analyze whether it has fallen for the desired amount, but even if there are other aspects that need further approvals
• documents of mortgaged housing: must contain cadastre and tabulation in the land book
• The period of the bank’s crowd – a demanding period for the bank can increase waiting times
• The availability of the bank’s evaluator will inspect the mortgaged house to establish the value according to the pre -established conditions, used by all banks (area, equipment, surface, etc.)

What are the conditions for the granting of a mortgage?

The conditions for the granting of a mortgage loan can differ from one banking institution to another, but those found in any bank are those imposed by Romanian legislation. First of all, the person who requires credit must be important.

Secondly, Romanian legislation allows, from January 2019, a degree of debt of the maximum 40% of the net salary for the loans in her and the maximum of 20% for loans in currency. For the maximum degree of debt, other non -reimformed loans are taken and the calculated income are only permanent. For example, it is not taken into consideration if you receive money from friends or relatives, even if this happens recurring.

Another important condition in the concession of the mortgage loan is the history of the applicant’s payments. If the person who requires credit is at the credit office as evil or has a story of unpaid obligations in time, the bank can refuse to grant credit.

In general, mortgage loans are granted to people who are 75 years old at the end of the loan.

For this credit, but also for others, the bank also takes into account the partner’s income if the applicant is married and this can be advantageous in terms of maximum value that can borrow.

What documents do you need for the mortgage?

As mentioned in the previous points and, in the case of the documents necessary for the mortgage loan, things can be different from one bank to another. However, there are some documents that will be requested in any banking institution.

I am:
• Credit application
• Agreement to consult the boiler database at credit risk
• Documents certifying the payment capacity: salary, pension, independent activities, etc.
• Identity documents
• The documents of the building proposed for the mortgage

Which salary do you have to have for a mortgage?

There is no minimum wage regulated by the law that it is necessary to reach to obtain a mortgage.

All you have to meet are the following two conditions:
• The monthly rate should not exceed 40% of the net profit, for loans in her, or 20% of the net profit, for currency credits
• To adapt to your salary to the above condition, during the maximum period for which the bank gives you the credit