Banks have accelerated the processing of mortgage applications. Less interest in housing loans and a decline in lending means that people applying for real estate financing in November waited for information about granting or not credit for a week less than at the beginning of this year. However, despite the reduction in the time of analyzing loan applications, it takes an average of over a month to sign a loan agreement.
In many situations, however, the processing of applications takes even longer than 30 days, and this is in clear contradiction with the banks’ declarations about a fast credit process. It is worth noting that we have been observing the systematic shortening of analysis times for several months, and the longer waiting time for decisions and signing the contract in January and February had reasons dating back to last year. They resulted mainly from the large number of applications submitted at the end of 2011. At that time, many customers who wanted to avoid the new, more restrictive SII Recommendation applied for credit before the new year. A large number of applications submitted in December 2011 translated into longer waiting times. For this reason, those who finalized the loan in January and February had to wait so long for the contract. Currently, these times are shorter, but you still have to wait for more than a month on average to get a loan. Also, due to the increased interest in “Rodzina na Swoim” loans, it should be expected that the end of this year will also bring extended dates at the beginning of 2013.
Loan activation time – the decision depends on the customer
The next stage in the loan application process is the release of funds. However, much more depends on the customer in this matter. The payment deadline depends on the type of transaction, and the withdrawal may take several or even several days. Launching on the secondary market follows a notarial deed of the date decided jointly by both buyers and sellers. Often, clients having financing guaranteed after signing the contract, delay the signing of the act and, consequently, the payment of funds. Also launching on the primary market depends on the payment schedule and does not depend directly on the loan agreement. Of course, each bank reserves that it takes a minimum of 3-5 days from signing the contract and meeting the conditions for disbursement of the loan, but the last stage of applying for a loan depends to a large extent on the borrower and his decision.
The processing time should also be considered as part of the offer. When choosing a bank, you should not be guided only by the margin, commission or insurance, but it is necessary to check how long we will wait for the application to be considered. Unfortunately, the banks do not provide binding deadlines within which they undertake to deal with our documents and issue a decision and prepare a contract. The times given are only declarations, without the possibility of enforcement in the event of a prolonged procedure.
A month of waiting for a contract – what does the bank do then?
The application analysis process is multi-stage and complex. At the beginning, the bank verifies the completeness of the application, in the event of deficiencies that prevent the decision being made, it will be necessary to complete the documents. The next step is to check the customer’s credibility and credit history in the databases of the Credit Information Bureau (BIK) and other registers. In some institutions, the client’s creditworthiness is also checked briefly. Then the bank is able to inform the customer about the initial credit decision. This is the first information that banks often use in advertising saying that they are able to process the application within e.g. 48 hours. It is worth remembering, however, that such a decision is not binding and the bank may change it at any time if the loan parameters change. The value of real estate is one of the most important. When securing yourself on a house or apartment, the bank must know its value. It is therefore necessary to request a quote or verify a document provided by the customer. Each of these activities takes several days, which means that the loan granting process is extended.
It is also worth remembering that every bank decision is not final and may change. Only signing the loan agreement kind of guarantees us the loan. Only failure to meet the conditions to be mobilized may result in the money not being mobilized. At this point, it is also worth remembering that the physical writing of a loan agreement in some institutions takes several days, which will also affect the longer waiting time.
Deciding to buy real estate and taking out a loan
The relevant provisions in the preliminary contract are necessary. The date of joining the notarial deed or disbursement must take into account the over-one-month waiting period for the loan. Certainly you should not be under the illusion of advertising that a bank is able to grant a loan within a few days. At the most, a decision can be issued at the most, and this is not the same as granting the loan. You usually have to wait about one month to sign the contract after submitting your application.