Do you want to buy an apartment and you still don't have all the money? No problem, there are several financing solutions , one of the most popular being credit. In the context in which we do not expect major imbalances on the credit market, as we explain in the article related to housing rates , this decision seems to be an auspicious one.
And yet, is it worth making a pre-approval for credit? In the following we will clarify about this topic!
What is the credit pre-approval process?
What does pre-credit or pre-financial approval mean? In short, it is the process in which you want to access a real estate-mortgage loan, for a home, and present yourself at the bank together with the income documents. The bank you choose for collaboration will perform a financial analysis and will communicate to you the maximum amount of credit you will be able to obtain.
Pre-approval is easy to obtain and offers some advantages, but be careful, it is different from financial simulations.
What do you need to know about pre-approval?
Do not rush to sign the sale-purchase contract , especially if you have not yet clarified about the credit and the pre-approval process or you have not learned more about the state of works .
For a financial pre-approval you will need the identity documents and the income documents, yours and the co-debtor's (if it exists). Obtaining pre-approval can take between one month and six months, and its validity can be approximately 45 calendar days from the time of financial approval. Attention, these periods can be different depending on the chosen bank and can vary between 30 and 180 days.
It is also worth mentioning that when the file is completed with the real estate documentation, the bank will also update the information related to the payment obligations and the realized income. Also, if the applicant's marital status changes from the moment the financial approval is issued until the moment when the guarantee documentation is submitted, it will be necessary to re-enter the application.
Do you make a financial approval or not?
Is it worth making a financial pre-approval? Among the benefits is the fact that all costs, so the interest and commissions valid at the time of validation of the request remain fixed. So you will know exactly how much money you rely on when looking for the right home. If you are the type of person who needs more security, we advise you to follow this process. In addition, during the validity period you will complete the credit file only with the information from the real estate documentation in order to obtain the final approval.
Can the bank change the conditions? Yes, but only if the current approval expires and the interest rates increase. But at the moment you don't have to worry! Even though interest rates have risen slightly due to inflation, the values are still very good. For example, the value for fixed interest is somewhere between 5.7% and 6.5% per year for loans in RON and about 4% for those in EUR.
We hope that we have clarified you about this aspect and we are waiting for you in the showroom to get to know each other and to discover more about our project !