Negative decision on the mortgage in the Savings Bank. Why do banks refuse mortgages? Low income and outstanding loans

Most of the real estate transactions today are made using mortgage funds. When an apartment has already been chosen, and there is a sufficient amount of funds for the first installment on a mortgage, the most important condition for buying a home is the approval of the mortgage loan by the bank.

However, the bank has the right to refuse to obtain a loan without giving reasons. In order to still get a mortgage loan in the future, it is useful to know the most common reasons for banks to refuse.

Why did the bank refuse a mortgage, what are the reasons?

Banks do not voice the reasons for the negative decision on the loan application on completely legal grounds.

Each credit institution develops its own credit policy and a system for assessing the solvency of borrowers. This information is confidential and is available only to a limited circle of bank employees. In most cases, even credit managers do not know the reasons for refusal. All these measures are taken to protect trade secrets. Each bank may have a different attitude to one or another factor that characterizes the borrower, but there are a number of criteria by which refusal is the most possible.

Reason 1. Non-compliance with the requirements of the credit institution for the borrower

• Age (usually between 21 and 60):
• at least 6 months of experience in the current workplace, total experience of at least 12 months;
• Russian citizenship.

If at least one condition is not met, most likely the application will not even be accepted.

Reason 2. Bad credit history

A damaged credit history entails an almost unequivocal rejection of a loan. At the same time, it does not matter whether you had a defaulted loan or a small delay in payment, even if for a good reason. Information is transferred to the credit bureau already for the first day of overdue debt.

The complete absence of a credit history is also a negative factor for the bank, as it does not allow you to evaluate you as a borrower, to see how faithfully you fulfilled your obligations under previous loans.

Reason 3. High credit burden

One of the most common reasons for rejection is that the monthly payment is too high for a verified income level. Typically, banks consider a payment/income ratio of 40% acceptable. This takes into account the average per capita income for each family member.

If the family has a small child and the spouse is on maternity leave, this ratio can be reduced.

At the same time, all credit obligations of the borrower are taken into account: not only loans, but also credit cards.

Reason 4. Providing false information and fake documents

In no case do not try to forge documents or provide false information in the questionnaire. Banks have the tools to detect such cases. At the same time, refusal on the application is not the only consequence of such actions. Forgery of documents is a criminal offense.

Reason 5. Errors (typos) in supporting documents

Mistakes, misprints in certificates can lead to distortion of information about the borrower. Admitted accidentally by you or through the fault of employees of employers, they often become the basis for refusal.

In particular, strict banking requirements are imposed on the execution of certificates of income and employment.

Reason 6. Could not get through to the employer

Initially, borrowers go through the so-called scoring. This is an electronic assessment of the borrower according to the specified parameters. If this stage is successfully completed, the bank's specialists call the employer to confirm the actual place of work. If for some reason it was not possible to get through to work, the loan will be denied.

Therefore, it is important to indicate current work phone numbers, as well as warn the employer about a possible call from the bank. It is better if the specified phone is landline. Banks are very wary of organizations with contacts only in the form of mobile communications.

Reason 7. Opinion of the employee who accepted the application

Each bank employee independently evaluates a potential client. A neat appearance, confidence in the voice, quick answers to questions, self-filling of the questionnaire speak in favor of the borrower and form a positive image of the borrower for the bank employee.

If the client seems suspicious, a corresponding note will be made on the questionnaire, and the bank will treat the borrower more closely.

Reason 8. Non-payment of taxes and traffic police fines

• Some banks have a negative attitude towards borrowers with tax arrears and traffic police fines.
• The presence of a criminal record can also serve as a negative factor. Many banks are loyal to suspended sentences.

Reason 9: Having a recent failure

• Banks re-accept mortgage applications for consideration only after a certain period of time.
• If you submit an application earlier, there will be an automatic refusal even before the start of the procedure for analyzing the borrower for other parameters.

Reason 10. Mortgage property does not meet bank requirements

All of the above reasons relate directly to the borrower. But even with a positive initial decision, the bank may refuse a mortgage due to an unsuitable collateral object.

Main reasons:

1. Dilapidated housing or planned for demolition.
2. The house is older than the 1970s.
3. Wooden floors and lack of serviceable communications.
4. Ambiguous ownership and the presence of persons whose rights could be violated.
5. Lack of legal documents.
6. Unfavorable geographic location.
7. The property does not meet other liquidity criteria.

Usually, no more than three months are given for the provision of documents on collateral. If the documents are not received within this period, the previously approved application will be rejected.

What to do if a mortgage loan is denied?

First of all, prepare an application for a mortgage in another bank, and preferably in several. It is quite possible that smaller credit institutions impose more forgiving requirements for mortgage borrowers.

If a negative decision is received on all applications for loans, it is worth analyzing the possible reasons for the refusal in relation to your situation and try to eliminate them before re-submitting documents.

What steps should be taken?

1. Check your credit history. Even if you are sure that you have no outstanding loans and past due payments on previous loans, order a report on your credit history. This can be done once for free, online, or for a small fee through companies that provide similar services. To do this, you will need the code of the subject of the credit history and a list of bureaus that store information about your loans. Often, due to the fault of banks, the CBI contains irrelevant information that needs to be corrected. If this is the real reason for the refusal, until the information is corrected, it will be enough to attach certificates of repayment of previous loans with a description of you as a borrower.
2. Try to reduce credit obligations. To reduce your credit burden, try to pay off other obligations and close your existing credit cards. It is also possible to attract solvent co-borrowers from among relatives, and submit a future application for a longer period. All these measures will increase the allowable credit burden.
3. Warn the employer about a possible call from the bank.
4. Choose housing that meets the requirements of the bank for collateral.
5. A re-application should be submitted only after the period allowed by the bank after receiving a refusal.

Reasons for refusal in Sberbank

Sberbank may refuse for all of the above reasons and, like other banks, does not disclose the exact reasons for the refusal. There are about 20 parameters in the assessment system of Sberbank, on the basis of which a decision is made.

Information about this, as well as about the procedure in case of refusal of a mortgage, is posted on the official website.

Real estate transactions in 70% of cases are carried out with the participation of banks, mortgages have become an integral part of life for many citizens of the country. Young families got a chance to quickly acquire personal living space in a new building or on the secondary market.

However, the bank may refuse to issue a loan without explaining its decision to the potential borrower. It is important to know the reasons for the refusal of a mortgage in Sberbank and other financial institutions.

Non-compliance with basic requirements

Each bank has basic requirements for the borrower, if these criteria are not met, the rest of the client's opportunities will not be considered. When applying for a mortgage loan, you should know for sure who the credit institution wants to see in the face of its borrower:

• Age restrictions - from 21 to 75 years old.
• Work experience at the last place of work - at least six months.
• Total work experience for the last five years - at least 1 year.

If you meet the main selection criteria, feel free to apply for a mortgage loan, but do not be 100% sure of a positive answer, because there are many reasons why any bank may refuse to issue a loan.

Reasons for refusing a mortgage

How to find out the reason for the refusal of a mortgage - this question torments borrowers, since usually neither Sberbank, nor VTB 24, nor other credit organizations do not provide the client with the necessary information.

In fact, the reasons for the bank's refusal of a mortgage lie on the surface, knowing the main ones will save the borrower time and make it possible to correct some points to increase the chance of a positive response from the bank in relation to the mortgage loan.

Bad credit history

The first thing all banks pay attention to is is the borrower's credit history. The database takes into account the movement of credit funds over the past years, a representative of the organization can trace the presence of delinquency and unpaid loans, stable loan repayment.

A negative answer is likely to come if the client has delays today, in addition, the bank may refuse even if there were delays in paying a loan that has long been repaid. A clean credit history also does not meet the requirements of the bank - in this case, it is impossible to determine the solvency and integrity of the client.

To increase the chances of mortgage approval, provided a clean credit history, it is recommended to take a small consumer loan for a short period and pay it off a little earlier than the due date. But do not repay the loan too quickly, the bank may regard such actions as a rating boost.

Errors in documents

Often, a bank refuses to issue a loan for one simple and even stupid reason - the presence of errors in the submitted documents. An error can be made both as a result of the personal carelessness of the borrower, and as a result of the incompetence of an employee of the organization issuing certificates to confirm income.

In most cases, such errors are simple typos, but they lead to a distortion of the truthful information, which, as a rule, becomes decisive.

Lack of financial capacity

The bank pays close attention to the solvency of the client, an important role is played by the presence of work on a permanent basis and high income. The borrower will have to submit to the lender a certificate in the form of 2-NDFL, a certificate filled out in the form of a bank and certified by the employer is also suitable. Difficulties do not arise if the client manages to convince the bank that he has the money.

A more complicated situation is observed when confirming the income of an individual entrepreneur operating under a simplified taxation scheme, in this case it is not easy for the bank to determine the real income of the client. Also, you should not rely heavily on mortgages for those people who do not work officially.

Debts in the tax and traffic police

How to find out the reason for the refusal of a mortgage from Gazprombank or any other? Check if you have debts to the traffic police or the tax office, fines and other unpaid loans can fail.

In addition, the bank may make a negative decision on the issuance of a mortgage loan in relation to a borrower with a criminal record. If the conviction was conditional, banks can make concessions.

Client uncertainty

The decision of the bank is influenced not only by computer data processing, when filling out an application for a loan, an employee of the organization necessarily communicates with the client. If the borrower is confused in the answers and the necessary information, this may arouse suspicion in the bank representative and force him to make a negative decision. When communicating with banks, it is important to tell only the truth, especially when it comes to the place of work and wages.

Failure to verify borrower information

The bank provides the borrower with a large amount for the purpose of a mortgage loan, it cannot but be concerned not only with the client's solvency, but also with the veracity of the information provided. Without fail, bank employees check the data received, and if they cannot get through to the place of work at the indicated numbers, the refusal to issue a mortgage will be guaranteed.

Indicate truthful information, warn the authorities and accounting department at work in advance about a possible call. You should also warn relatives or friends if you indicated their phone numbers in the questionnaire.

Forgery of documents

Do not try to forge documents, modern verification methods in most cases allow you to distinguish the original from paper of dubious origin. You should not resort to the services of persons offering fake income certificates and other documents.

In the event that a fake package of documents is presented to the bank, the refusal of a mortgage is the best option for the event, the worst option is to enter the name of the borrower in the database of unscrupulous customers. By the way, forgery of documents is also subject to criminal liability.

Borrower's health

Banks pay much attention to the state of health of the borrower. A high probability of refusal awaits pregnant women, as well as those clients who have been treated in a hospital for a long time. If the borrower has obvious signs of a serious illness or disability, most likely, he will be denied a mortgage without specifying the reason.

Note! The above are only the main reasons for refusals to issue a mortgage, however, each bank has its own verification system and its own requirements. For example, a denial of a VTB 24 mortgage is more likely to await a client with a high income and multiple entries in the work book, rather than a borrower with a lower salary, but working in one place for a long time.

Due to the unstable situation in the economic market for 2019, the mortgage refusal rate reaches 80%.

Low liquidity of the property

A number of requirements are imposed on the choice of collateral real estate, its low liquidity can lead to a refusal to issue a mortgage. Why is this criterion so important for banks?

Before issuing a home loan, bank experts carefully evaluate the mortgaged housing, considering the worst-case scenario - the borrower refuses to repay the mortgage. In this case, the bank will sell the mortgaged property, and the proceeds will cover the principal debt on the mortgage.

Under what criteria should the purchased housing fit:

• The location of the real estate object is the regions of operation of the bank's branches, urban or suburban areas.
• The year of construction is not earlier than 1965.
• Type of real estate - a comfortable apartment or a private house with a plot of land.
• Landscaping - the presence of a separate kitchen and bathroom, cold water, sewerage, electricity.
• Legal aspects - no encumbrances, debts, illegal redevelopment.

Most banks do not issue mortgage loans for rooms in communal apartments and dormitories. It does not take into account real estate in remote regions, which is almost impossible to sell.

What to do if the bank refused

If the loan was nevertheless refused, and the bank did not wish to indicate the reason, the borrower has the opportunity to take certain measures to increase the chance of a positive response next time.

Credit history adjustment

If a client has not reviewed their credit history in advance after being denied a mortgage, 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 carelessness 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 himself is at fault, he can pay off the existing debt and pay regularly for several months, and then reapply for a mortgage.

New property search

The refusal of a bank to issue a mortgage loan, due to the low liquidity of real estate, is solved quite simply. The borrower should start looking for a new facility that will meet the requirements of the bank. 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 portion 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 mortgage registration.

Applying to other banks

Earlier, we have already said that each bank makes different requirements for the borrower, and therefore the refusal to issue a mortgage is not necessarily hidden in the main listed reasons. If one bank turned you down, there is a chance 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 attract additional guarantees, namely, participation in the loan of co-borrowers or guarantors. Only close relatives can act as co-borrowers, wealthy individuals can take part as guarantors.

Also, the client can 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 loan 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.

The help of a loan broker is an ideal solution for the following categories of borrowers:

• Citizens who do not understand the conditions of lending.
• Business people who do not have enough time to independently collect all the documents and complete the formalities.
• Potential borrowers who have been denied mortgages by multiple financial institutions.

For many people, a mortgage loan represents a real chance to purchase their own home, and therefore the loan should be approached responsibly. Do not despair if you are refused, apply to several banks, do not forget to make sure that your credit history is positive.

Video: Reasons for mortgage denials

A stable income and a positive credit history are not a guarantee that Sberbank will not refuse to issue a mortgage. The main reasons for failure can be divided into five groups.

1. Non-compliance with standard requirements

Borrowers are subject to the following requirements:

Age - from 21 years old;

Age at the time of loan repayment - up to 75 years;

According to banks, only 7 out of 10 borrowers receive a positive response to a loan.

Work experience - at least 6 months at the current place of work and at least 1 year of experience for the last 5 years; if the borrower often changes jobs or has "gaps" in the work history, this also negatively affects the likelihood of loan approval;

Providing a full range of documents. Inaccuracies in the application for a loan or the provision of an incomplete list is one of the reasons for refusal. It should be borne in mind that the provision of false income statements threatens not only with refusal, but also with inclusion in the black list. In this case, the borrower will not be granted a loan not only in Sberbank, but also in all other banks.

2. Bad credit history

The most likely reason for the refusal is the bad credit history of the borrower, which is kept by the Credit Bureau. It can be spoiled if the borrower fails to pay loan obligations on time, or if the loan is not paid, where he acted as a guarantor.

The list of documents requested by Sberbank for granting a loan varies depending on the mortgage program. In most cases, these are identity documents and proof of income.

The reason for the refusal may also be the fact that the borrower in the recent past took out a loan for an inexpensive item, such as a mobile phone. This makes the bank doubt its solvency.

3. Low solvency of the borrower

The bank's decision is influenced by the requested amount and the level of debt. So, a positive factor is the availability of a down payment and the level of income of the borrower, as well as their stability. The bank also takes into account the number of dependents in the care of the borrower.

4. Unsatisfactory assessment of the selected property

The acquired property (or the one that is the object of collateral) must be liquid, and the documents of property rights must be drawn up in accordance with all the rules. The reason for refusal may be the negative reputation of real estate sellers.

5. Other reasons

There are a number of other reasons, usually they are not the main reasons for the refusal, but are considered as a whole. Among them:

Level of education (priority is given to borrowers with higher education);

Criminal past, the presence of offenses (convictions);

Availability of loans in other banks;

Parallel application for other banks;

Getting rejected by other banks;

Salary that does not meet the average;

Frequent job changes or a suspiciously quick career takeoff.

Mortgage loans are issued very often. The conditions depend on the bank, and the rules for issuing are almost the same everywhere. Loans are provided in accordance with.

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The requirements for issuing mortgage loans are quite strict, and in conditions of a limited amount of funds, banks often refuse an application.

Sometimes a refusal to open a mortgage can be a real problem, but it is worth fighting for the truth and understanding this issue in more detail.

Bank requirements

In order to become an ideal borrower for a bank, you need to answer quite a few, which is absolutely impossible.

It is worth considering some of the requirements that banking institutions impose:

1. The mortgage loan borrower must be between the ages of 20 and 40 on average.
2. It is desirable to be married, to own expensive assets, which can be apartment holdings, land and others.
3. It is very important to have a constant stable income. The so-called "white" salary is an essential item for obtaining a mortgage. Of course, employees of the “highest rank” enjoy special honor. For example, managers, employees of oil and gas companies, or employees in the field of IT technologies.

Who is denied?

Basically, you need to meet two requirements for your application to be approved by the bank:

1. First, the borrower plays an important role. However, do not be upset even if you have not taken loans at all before. You can only get rejected if you have a bad credit history. Non-payment, existing debts obviously will not lead you to receive a large amount.
2. Secondly, a potential borrower must have a job, and, accordingly, a steady income. You should expect an immediate refusal if you do not work anywhere or receive a "black" salary (in envelopes, avoiding taxes).

You can't get a mortgage either:

• military (" " does not apply to this category);
• professions associated with a risk to life;
• individual entrepreneurs, businessmen who constantly take risks;
• seasonal occupations or occupations with low wages.

The template evaluation of each person by bank employees makes it possible to weed out unnecessary people, leaving only the most worthy candidates.

If you do not meet the requirements for age, income, or have previously owed loans, open other parties for bank employees:

• attach copies of several higher educations (if any);
• imagine your own assets (real estate or car).

All this can affect the decision to grant a mortgage loan.

What do you do if you don't get a mortgage?

In the event that Sberbank refuses a mortgage, a client of a financial company has a logical question, why did this happen and what needs to be done so that the refusal does not happen again. So, let's take a look at the most common reasons for refusals in a mortgage.

Reasons for mortgage denials

The majority of Russian residents, when choosing a bank that issues funds for a mortgage loan, prefer Sberbank. And this is not surprising, because this financial company is not only popular and respected, but also offers favorable conditions, has government support, thanks to which the organization offers many government programs, and, very importantly, has many branches throughout the country.

However, this financial company, with its loyal attitude towards customers, may reject the borrower's application. Naturally, the client is interested in why this happened.

Before you start scolding bank employees, carefully read the requirements that a financial institution requests. This can be done both on the Sberbank website in the " Mortgage" section, and by calling the hotline 8-800-555-55-50, or in one of the branches of a financial company.

Non-compliance

As mentioned earlier, one of the most common reasons for mortgage denials is non-compliance with the requirements. Let's take a concrete example.

In 2018, the State Program was launched with the most favorable condition of 6%, aimed at supporting families. However, it is designed only for those families where the second and third child was born in 2018. Accordingly, if your child was born, for example, on December 31, 2017, then you will most likely be denied a mortgage.

Insolvency

Often people are rejected because they have a low income. Accordingly, potential bank customers have a natural question - what should be the income in order to take a mortgage? Income must be at least 2 times the one-time loan payment. That is, on average, it is 20-25 thousand rubles.

Don't be discouraged by the fact that you were denied a mortgage loan due to low yields - it may be worth convincing the lender that you are really solvent. To do this, you can provide a financial institution with a passport with a mark on traveling abroad, a debit account with savings, or a lease agreement. If the bank stubbornly refuses to approve the application, then perhaps the reason is not at all low income.

Credit history

A negative credit history may include penalties from a financial institution, unpaid debts, loan arrears, and so on. It is authentically known that Sberbank does not work with clients who have a negative credit history. However, do not despair. If you urgently need funds, you can contact another bank, but be prepared for the fact that the interest rate will be much higher.

In addition, you can correct your negative credit history - then Sberbank will give you funds for a mortgage without any problems.

Document problems

This is especially true for fake papers or incorrectly filled personal data in the application. Remember that a mortgage loan is, as a rule, a rather large loan, and therefore the bank will thoroughly study all the documents on it. If the financial company finds a fraud, then this will certainly be refused. Therefore, be as careful as possible when filling out the application. And is it worth saying that if forged documents are found, the bank has the right to apply to higher authorities?

debts

A financial institution may also refuse if you have previously taken, but not yet paid loans. Therefore, even if you have a fairly high income, it may not be enough to pay all the loans. Try to pay off at least part of the previous debt, and only then apply for a mortgage at Sberbank.

Health status

If you have serious health problems, such as diabetes, oncology, and so on, then you will most likely be denied a loan. For a bank, such cooperation carries certain risks, and therefore no organization will want to cooperate with a client who may not be able to pay his debt in the future.

Real estate problems

Most often, mortgages are purchased housing as collateral, and therefore it is important that it be liquid. In other words, if a bank client cannot pay off his debt, then the financial company should easily sell the home. That is why a bank client should purchase normal housing, without any unauthorized redevelopment, so that the apartment or house passes the examination. Acquired housing should in no case be in a dilapidated or emergency condition.

Other reasons

There are many other reasons why a bank may refuse a loan. So, for example, if a person is not officially arranged, then he may not be approved for a loan. In addition, according to the rules of Sberbank, at the last place of work, a potential client must have worked for at least half a year.
Another reason for refusal is the lack of citizenship or permanent residence. By the way, a mortgage can also be issued under a temporary registration, but only for the period during which this registration is valid.

Also, a potential client may be refused due to a criminal record or an age that does not fit the terms of the loan. If a person is too young or, conversely, too old, then he may be denied a loan.

By the way, they can refuse even in the absence of education or if you are an employee of certain professions - for example, a realtor or an individual entrepreneur.

How to find out the reason for the refusal of a mortgage from Sberbank?

As already mentioned earlier, according to the law, the bank has the right not to disclose the reasons for the refusal, which most often happens with Sberbank. Of course, you can try your luck with a bank employee and ask him about the reasons for the refusal - perhaps the specialist will tell you about the reasons for the refusal.

What to do in case of refusal?

Let's figure out how to act if you were refused a mortgage from Sberbank.

Can I reapply for a mortgage at Sberbank?

If you are denied a loan, no one will prevent you from applying again, which most often happens. However, it makes no sense to apply again if you are going to the bank with the same package of papers. Try to provide documents in such a way as to show yourself in a more advantageous way.

How to evaluate your chances?

Try checking the bank's requirements again - perhaps you missed something? If you meet all the requirements of the bank, do not have a criminal record, serious illnesses and a negative credit history, then you will most likely be approved for a mortgage loan.

How to increase the chances of mortgage approval in Sberbank?

If at least one item is found that you can not pass, then it needs to be corrected. So, for example, low wages can be corrected with the help of additional collateral or co-borrowers, damaged credit history - with a loan from another bank or the Credit Doctor program. And if you have any debts on loans, then it is advisable to pay off all debts.

You can learn more about why mortgages are denied in the video.