When to apply, How to apply, What to consider – Polish Mortgages
5 Tips that may save you serious Zloty
Through our own experience and detailed interviews with numerous Polish Credit Advisors, the following are our best tips when applying for a Polish mortgage. Some tips are obvious, some less so, but all are important whether you are new to the country or a native Pole.
If you think we missed something or simply need more information please contact us and we will do our best to help you.
Tip 1 – It costs nothing to apply so do it early
You are looking to buy a property but will require a mortgage. Well, before you even start looking, the first thing you should do is to find out how much you can borrow. Seems obvious but lots of people leave this too late and find themselves rushing with applications at the last moment.
Tip 2 – You don’t need a hard Mortgage offer but you should have a ballpark idea before you begin
It can all be a little chicken and egg as the bank will not confirm how much until they know about the property and of course you don’t know which property until you know how much you can borrow.
Obviously, signing a preliminary agreement with the seller and paying the non-refundable 10 % deposit can be daunting without an actual guarantee from the bank so do what you can now to avoid this predicament.
Tip 3 – Don’t apply to all banks yourself, it may damage your borrowing ability
It’s a long time since relationships between a bank and their customer had any importance and these days it is a simple numbers game so applying to every bank would seem to make more sense. But did you know that this can currently hurt your chances of success?
At present, the rating agency used by all banks will reduce your credit rating if you are seen to apply to more than three banks, Daft, we know, but there you go.
Tip 4 – Use a qualified professional Advisor – they’re free and can only help
Tip 3 makes it even more important that you employ the services of a qualified independent Credit Advisor. They earn a commission from the bank so there is no charge to you for their work. A good Advisor should be able to assess your situation quickly and give you good guidance on how much you can expect to borrow. Additionally, they will also be aware of which banks would be more interested in lending to you, thus increasing your chances of success. We would add, assume nothing. Bring a notepad with you for the meeting and ask every and all questions you can think of re documents required, timeframes, breakdown of costs/penalties etc..
Tip 5 – Be aware of the ancillary costs when budgeting
When budgeting, be sure to include the valuation and arrangement fees that can be anywhere between 1-3 % of the loan amount. This is in addition to the actual costs of purchase.
Don’t forget, you get cash-back when you use our sister site, BigDoor24.pl, to locate a Credit Advisor who speaks your language.