10 steps to obtain right mortgage in Poland
Have you found an attractive and well finished apartment or home in Poland? Then probably you look around for financing its purchase. But be careful. You will probably feel lost in the maze of mortgage offers prepared by polish banks. Here are ten key steps that will lead you to obtain right mortgage, and at the same time will save you from taking the wrong choice. Remember that mortgage in Poland is called kredyt hipoteczny.
Step 1. First make sure how much mortgage loan you can afford. Simply you should check yout creditworthiness, which in polish financial jargon is called "zdolność kredytowa". With it you will know what amount of loan the bank will be able to offer you.
Step 2. Choose your property. Search only these apartments or houses whose price is lower than your creditworthiness.
Step 3. Use a mortgage calculator. Using mortgage calculator, which is called "kalkulator kredytowy" in polish, is essential to calculate the monthly installment loan that you will pay for desired property.
Step 4. With a paper sheet and a pencil in hand, count how much money you spend per month on rent, the electricity, car (fuel, periodic repairs), mobile phone, internet, television and other financial liabilities (including the current installment repayments of loans, repayment of debt credit cards and credit limits, insurance, etc. Include and accurately summarize all of them!
Step 5. Subtract the amount from step 4 of your monthly earned income. If the result of subtraction is less than the amount of calculations in step 4, then stop reading this guide. Do not risk signing the loan agreement that will make you fall into real trouble!
Step 6. If, however, the calculations show that after subtracting expenses from income and installment loan you still have some money, then you can seriously thin about getting a home loan. In addition, the remaining surplus of revenues in the future will allow you to systematically grow your savings (this will be your reserve for "rainy day" and will be useful for unexpected expenses, which can always occur)
Step 7. Examine all home loan offers in all banks. Seek them with loan counselors, find out the info about them directly through bank call centers or websites. First, pay attention to the mortgage loan rates, because it is a basic parameter, which for many years will decide if you took a cheap mortgage.Other important components of mortgage loan are:
- Commission on the loan,
- Unemployment insurance,
- Life insurance,
- Commission on early repayment of the loan,
- Property valuation fee
The lower is the cost of these compounds, the better.
Step 8. Apply for a mortgage loan in up to three banks, which offer the best payment conditions for you.
Step 9. Prepare properly for interviews with banks about their offers. Try to negotiate rates and other commissions! Convince the bank that you will be reliable and trustworthy borrower. Often during this type of negotiations you can significantly reduce your mortgage loan rates.
Step 10. After a period of several days to several weeks you should receive a positive decision from at least one bank. If more than one bank will issue a positive decision then choose the best offer.
Step 1. First make sure how much mortgage loan you can afford. Simply you should check yout creditworthiness, which in polish financial jargon is called "zdolność kredytowa". With it you will know what amount of loan the bank will be able to offer you.
Step 2. Choose your property. Search only these apartments or houses whose price is lower than your creditworthiness.
Step 3. Use a mortgage calculator. Using mortgage calculator, which is called "kalkulator kredytowy" in polish, is essential to calculate the monthly installment loan that you will pay for desired property.
Step 4. With a paper sheet and a pencil in hand, count how much money you spend per month on rent, the electricity, car (fuel, periodic repairs), mobile phone, internet, television and other financial liabilities (including the current installment repayments of loans, repayment of debt credit cards and credit limits, insurance, etc. Include and accurately summarize all of them!
Step 5. Subtract the amount from step 4 of your monthly earned income. If the result of subtraction is less than the amount of calculations in step 4, then stop reading this guide. Do not risk signing the loan agreement that will make you fall into real trouble!
Step 6. If, however, the calculations show that after subtracting expenses from income and installment loan you still have some money, then you can seriously thin about getting a home loan. In addition, the remaining surplus of revenues in the future will allow you to systematically grow your savings (this will be your reserve for "rainy day" and will be useful for unexpected expenses, which can always occur)
Step 7. Examine all home loan offers in all banks. Seek them with loan counselors, find out the info about them directly through bank call centers or websites. First, pay attention to the mortgage loan rates, because it is a basic parameter, which for many years will decide if you took a cheap mortgage.Other important components of mortgage loan are:
- Commission on the loan,
- Unemployment insurance,
- Life insurance,
- Commission on early repayment of the loan,
- Property valuation fee
The lower is the cost of these compounds, the better.
Step 8. Apply for a mortgage loan in up to three banks, which offer the best payment conditions for you.
Step 9. Prepare properly for interviews with banks about their offers. Try to negotiate rates and other commissions! Convince the bank that you will be reliable and trustworthy borrower. Often during this type of negotiations you can significantly reduce your mortgage loan rates.
Step 10. After a period of several days to several weeks you should receive a positive decision from at least one bank. If more than one bank will issue a positive decision then choose the best offer.
