You can extend the approval of a mortgage at almost any bank. This will require you to provide updated information. Sometimes banks refuse reapproval. This often happens if there have been major changes in the life of the borrower.
Each bank sets its own term during which you can use the mortgage approval. Previously, it averaged two months, today you can find offers with the ability to use the bank's funds to buy housing within 3-4 months. This period is given so that the borrower can find a suitable object, conduct the entire transaction. But sometimes the set time is not enough. Then the question arises about the possibility of extending the mortgage.
Subtleties of mortgage renewal
This can really be done, although banks go to some tricks. During the consideration of the application, you can:
- get refused;
- become the owner of a smaller amount;
- take advantage of the offer at higher interest rates.
If the person does not take advantage of the approval, a single refusal may follow. But the subsequent application is usually approved. Therefore, it is recommended that you consult your loan manager. If it seems to you that he is not entirely competent, then you should contact the bank's hotline. Clarify the reasons for the failure, sometimes it is easy to eliminate them.
Sberbank often practices reducing the amount. You can re-approve the application, but there is no guarantee that there will be enough funds to purchase the selected apartment or house. Sberbank today is a kind of "trendsetter". Therefore, his example is often followed by other financial institutions. The simplest thing is that if you did not manage to complete the deal with the seller, you need one or two days to complete it.
Sberbank, like some other banks, has one more subtlety: when renewing, you may be offered an interest rate that was not valid at the time of the decision for the first time, but at the time of the second application. Financial institutions strive to get the most out of their transactions, which is why this practice is common throughout the world.
When Cannot Renew Mortgage Approval?
If there are cases where you may not be granted renewal authorization. The rescheduling is not possible if during this time the borrower's income has changed downward. If the mortgage manager decides that you will not be able to pay the loan under the new agreement, then the decision will be negative.
Renewal difficulties may arise if:
- the borrower has lost a permanent job;
- there have been changes in the conditions of the bank;
- during this time, the credit history was damaged.
Another situation where problems may arise: you are already paying off the debt on one mortgage. In this situation, the documentation will be checked more thoroughly.
There are also a number of technical repeated failures. In this case, it is enough to correct errors or eliminate the bank's remarks. Such reasons include the lack of the required amount of money for the initial payment, there were typos when entering personal data, the passport expired.
What do you need to renew your mortgage approval?
First of all, contact the bank. You will be asked to write an application that will be considered for a certain number of days. This can be done in person at the branch, as well as through your personal account (the service is not provided in all banks). Some financial institutions will ask you to update information. To do this, you will need to bring again a copy of the work book or employment contract, a certificate of salary. It takes less time to reissue because the basic information is stored in the database.
If during the search for an apartment you are our more suitable offer from another bank, then the application is submitted again with a full package of documents. You do not need to notify the first bank, after the expiration of the term the offer is canceled automatically. Experts recommend that you still call your specialist so that no negative notes were made in the credit history.
In conclusion, we note that renewal of approval for a mortgage application is a popular practice. The least problems will arise if you document the reason for not using the approval in the appointed time. Financial organizations are more loyal to corporate or regular customers, in a situation where the main direction of the bank's work is mortgage lending.
