Getting a mortgage is not easy. A banking organization will definitely require a lot of documents. But this is not just paperwork, but a necessary step for a financial institution. All documents are subject to thorough verification, after which a decision is made on the possibility of issuing a loan to a specific borrower.
The procedure for obtaining a mortgage loan is quite complicated and includes many stages. One of them is checking the documents of a potential borrower. Usually, such a check is carried out by several services of a banking institution at once, the head of each of which provides a report based on the results. These documents are kept in the personal file of the borrower and are protected by the bank secrecy law.
Verification of basic documents
First of all, the bank's security service checks the client for the accuracy of the data submitted in the application form. The question of the authenticity of all documents provided to the bank by the borrower and, if any, guarantors is required is clarified. In addition, credit history and the presence of valid credit obligations are the subject of verification in the first place. If it turns out that there are valid loans, information about which was not indicated in the questionnaire, this may become a reason for refusing to lend.
Another aspect is the verification of the authenticity of the documentation confirming the income of the potential borrower. They are analyzed carefully and meticulously; if necessary, appropriate requests are sent to the place of work and to the tax office. Additional income that the borrower cannot document is usually not taken into account in the scoring program. However, if such income is indicated in the questionnaire, they can also be verified.
Checking in the registers of mortgages and movable property
In addition to verifying the authenticity of the borrower's documents and the compliance of his income, bank employees send requests to state electronic registers of movable property and mortgages. Thus, it becomes clear whether the borrower has any obligations. Simply put, the bank checks for unpaid mortgages or car loans.
The real estate that the borrower is going to borrow is also checked in the relevant register. Moreover, this is done twice. The first time - upon receipt of a full package of documents from the borrower (before the credit committee makes a decision), the second time - directly on the day of the transaction. Such precautions are necessary for a banking organization to reduce the risks of loss of collateral. For example, there are cases in the secondary real estate market when several buyers, not knowing about each other, take out a loan for the same mortgage in different banks.
