How long does it take to get approved for a mortgage at VTB 24?
I would like to start with the fact that before a banking institution makes a positive or negative decision, you need to go through the survey stage. At this step, you must fill out an application - a questionnaire in which you need to indicate all the necessary information about yourself, your work, education, and so on.
How you fill out the application form will be the bank’s choice when making its decision!
How long does a mortgage approval last? Typically, consideration of the application lasts about 4-5 days, during which time the bank checks the information you provide for its authenticity, using various databases, and the bank has many of them. If a client wishes to obtain a mortgage loan on special terms, such as a mortgage using two documents, then he has the right to expect a response from the bank within 24 hours! We talked about how to apply for a mortgage using two documents at VTB 24 under the “Victory over formalities” program in a separate article.
The bank considers such applications first of all, since they are sometimes more favorable to it in terms of the conditions that are presented to the client as a borrower. And if you submitted an online application for a mortgage, then after a banking specialist contacts you, you can expect a decision from the bank within 2-3 days.
Important! The bank has the right to change the timing of consideration of an application for mortgage lending!
What can affect the bank's consent?
First of all, when considering your application, pay attention to:
- Age of the borrower (VTB 24 Bank issues mortgage loans from 21 years of age).
- Place of your permanent registration (if you apply for a mortgage using two documents, you have the right not to write such information, as this is provided for by this program).
- General work experience (at least one year).
- Current work experience (at least six months at the current place of work).
- Position at your workplace.
- Average monthly salary level.
- Additional income, if any.
- Your marital status, since if you have a spouse and children, the income will be divided among everyone.
- Availability of other loan obligations.
- Your credit history.
- Do you own any real estate? If you want to get a mortgage from this bank using your real estate as collateral, read this article.
- The amount of the down payment that you can provide (is it possible to take out a mortgage without a down payment at VTB 24 and under what conditions?).
- The reliability of your organization in which you work and its scope.
This information plays a big role for the bank!
What to do if the bank refuses
If the loan was nevertheless refused, and the bank did not want to indicate the reason, the borrower has the opportunity to take certain measures to increase the chance of a positive response next time.
Correction of credit history
If a client has not previously reviewed their credit history after being rejected for a mortgage loan, now is the time to do so. Credit history can be damaged not only as a result of late loan repayments, but also due to technical errors or inattention of bank employees.
To correct errors, the borrower has the right to contact the financial institution that compiled the credit history report. If the client is at fault, he can pay off the existing debt and pay regularly for several months, and then reapply for a mortgage.
Search for new property
A bank's refusal to issue a mortgage loan due to low liquidity of real estate can be resolved quite simply. The borrower should begin searching for a new property that will meet the bank's requirements. Remember that a financial institution will more easily issue a large loan for the purchase of an expensive and comfortable apartment than a small loan for the purchase of a village house.
Attracting a consumer loan
In some cases, it is better to opt for a regular consumer loan. Although such a loan may not be enough, it can cover a significant part of the cost of an apartment or house. To obtain a consumer loan, the borrower must submit a smaller package of documents compared to the package of papers for obtaining a mortgage.
Submitting applications to other banks
We have already said earlier that each bank has different requirements for the borrower, and therefore the refusal to issue a mortgage is not necessarily hidden in the main reasons listed. If you were rejected by one bank, there is a possibility that another financial institution is quite ready to provide a mortgage loan.
Co-borrowers and guarantors
In the event that a bank refuses to issue a mortgage loan due to low or unstable income, the borrower has the right to obtain additional guarantees, namely the participation of co-borrowers or guarantors in the loan . Only close relatives can act as co-borrowers; wealthy individuals can take part as guarantors.
The client can also offer the bank a higher down payment or additional material assets as collateral. In this case, the bank can change its anger to mercy and accept a positive response in issuing a loan.
Contacting a credit broker
Brokerage firms offer their assistance in obtaining a mortgage loan. The borrower can use the services of a broker, but be aware of the need to pay commissions.
Help from a credit broker is an ideal solution for the following categories of borrowers:
- Citizens who do not understand lending conditions.
- Business people who do not have enough time to independently collect all the documents and complete formalities.
- Potential borrowers who have been rejected for a mortgage by several financial institutions.
If even after following the listed recommendations it is not possible to obtain a mortgage loan, the loan can be issued to a spouse or one of the relatives who meets the bank’s criteria.
For many people, a mortgage loan represents a real chance to purchase their own home, and therefore you need to approach the loan process responsibly. Do not despair if you receive a refusal, apply to several banks, and do not forget to make sure that your credit history is positive.
Video: Reasons for mortgage refusals
Possible reasons for refusal of a home loan
The bank may have many reasons for refusing, but the client will never know why exactly the bank refused to issue a mortgage to the borrower! Since, according to the Civil Code of the Russian Federation (part two) dated January 26, 1996 N 14-FZ (as amended on May 23, 2016) of the Civil Code of the Russian Federation, Article 821, the bank is not obliged to explain the reasons for the refusal.
So, what reasons could there be for refusing a mortgage at VTB 24?
- The reason for refusal may be a small official salary, which is why the bank will under no circumstances issue a mortgage, even if you have a large, but mostly “gray” income.
- Failure to meet the basic conditions of the borrower, for example, you will only be 21 years old, but if the age limit is clearly stated in the conditions, then it is better to wait.
- The requested amount is too large, the bank may not refuse, but consider an alternative, based on your average monthly income and calculate your mortgage loan limit yourself.
- Having a bad credit history with numerous late payments and, even more so, malicious evasion of your credit obligations, can perhaps erase any good information about you as a borrower.
- Debt under existing loan obligations.
- Spouse's maternity leave. Oddly enough, for the bank this is truly a serious obstacle, since the income lasts for all family members, and if the spouse does not work, she will have no income, even if she is involved as a co-borrower.
- The place to work does not inspire confidence. If you work as a shawarma seller, it is quite possible that you may be denied a mortgage loan because they will consider your place of work to be a little frivolous.
- The bank may refuse you if you have your own property, but you do not pay utility bills, this means that it is not a fact that this will not happen with a mortgage.
- Children. If you are the only breadwinner in the family, your wife earns little, but you have five children, you may also be refused, because your family’s income will be taken into account for the children first of all. This means that in total you will have nothing left for your loan obligations to the bank.
- Criminal record. It can also influence a favorable outcome, even if it happened a long time ago.
- Your appearance.
It seems stupid, but, as they say, “they are greeted by their clothes, but they are seen off by their minds” - first of all, what people pay attention to is how a person looks. There is a small amount of doubt that if you came to the bank in shorts and flip-flops, this will have a favorable effect on the bank’s decision or they will not notice it. Maybe, but it’s still better to play it safe by dressing in a business style, as is expected in banking institutions.
Now you know why you may have been rejected for a home loan.
Don't be surprised if the bank turns you down. There are probably some points in your application that do not satisfy the creditors.
I was denied a mortgage, what can I do?
If you meet all the requirements, but the bank still refuses to approve the transaction, there is no need to give up. There are several alternative options for borrowers.
Studying your credit history
If you have not looked at your credit file before submitting your application, you can send a request to the bureau. The reason for the refusal may be a mistake by bank or bureau employees.
Selection of another property
If the refusal was motivated by the low liquidity of housing, a new option should be found.
Applying for a consumer loan
Instead of a mortgage, you can take out a standard consumer loan.
The funds may only be enough to cover part of the cost of the property. But the requirements for issuing borrowed funds are much lower compared to a mortgage.
Further actions
Your application has been approved. What to do next? Now everything depends on whether you confirm your information with documents.
Despite the fact that the bank itself may have verified the authenticity of everything you indicated in your application form. Your further actions will be explained to you by a bank employee who will call you back immediately after the banking institution makes its decision.
Usually, the bank manager issues a paper that indicates what documents you must submit to the bank (papers confirming the information you provided in your application form). The manager will also print out an approximate payment schedule based on the criteria you specified. How the preliminary calculation of a VTB 24 mortgage occurs, what the payment schedule is and whether it is possible to repay a loan online through another bank, we described in this article.
If you already have a selected option for applying for a mortgage, then all that remains is to collect all the documents and submit them to the bank for consideration. But, if housing has not yet been selected, then you should make sure that you have time to find a suitable option, since an approved application is valid for only 4 months.
After this period expires, you will have to submit the application form to the bank again.
Once the bank, based on the documents you submit to it, decides that the apartment is suitable for collateral, you can order an assessment report.
How much an apartment appraisal costs for VTB 24 with a mortgage can be found out here.
Next, you can plan the transaction date. After the loan agreement and the purchase and sale agreement are signed at the bank, and the money is transferred from the buyer to the seller, the mortgage lending can be considered completed.
You can find out more about how to get a mortgage from VTB 24, what are the requirements for the borrower and the parameters of the apartment, as well as what mortgage programs VTB 24 Bank offers here.
Rules for applying for a mortgage
VTB makes the final decision on each application individually. And approval of the application is valid for 90 days.
So, what needs to be done to get approval for a mortgage at VTB? There are a number of rules that, if you adhere to, can significantly increase your chances of a positive decision:
- Confirm with certificates your income both from your main place of work and from your part-time job. If part of the salary is “gray”, then you can submit a certificate using the VTB form.
- Please provide only accurate information in the application form. Attempts to deceive are detected very easily and often become reasons for refusal.
- If possible, involve guarantors. It could even be your family members. By reducing risks in the presence of guarantors, VTB Bank approves the application.
