Mortgage in a week? In theory it is possible, but in practice the waiting time for granting a mortgage is on average 38 days. Although banks have fewer loan applications to process due to the decline in lending, the analysis time has not been shortened, and has even been extended by 5-7 days compared to last year.
On average, it takes more than a month from the moment of submitting the loan application to sign the loan agreement. Since the beginning of this year, we have been observing the extension of the lending procedure at banks, and this significantly. In December last year, on average, you had to wait around 31 days. Currently, it is up to 7 days more. At the beginning of the year, the main reason for the prolongation of this process was the large number of applications submitted at the end of 2012, when the deadline for applying for a loan with government subsidies expired. Many people who wanted to use the “Rodzina na Swoim” program submitted their documents in the last days of December, but their analysis and signing of the loan agreement shifted for natural reasons at the beginning of this year. A similar situation took place a year ago, with the factor stimulating the large number of applications submitted in December 2011 was the entry of the SII Recommendation from January 2012. At that time, also in the first months of last year, we had to wait for the loan on average 5-6 days longer than in 2011.
What are the banks analyzing properly?
Long waiting times for loans and signing of a loan agreement are in direct contradiction to bank declarations or advertisements. We are often tempted by information that it will take no more than a week, and the loan agreement will be prepared just as quickly. However, anyone who takes out a home loan knows how many documents need to be provided and how the analysis process actually takes place. Of course, individual cases cannot be ruled out when the analysis was very fast, but as a rule this time is much longer. The analysis of the application means checking the client in interbank registers, verifying income and employment, as well as assessing real estate. Often, the real estate appraisal is the stage that extends the process. A bank representative or appraiser must visit a construction site, make an appointment with the seller, and this stage often takes several days. Even in a situation where the borrower provides his valuation with the application, the bank must also verify the correctness of its implementation. These processes take several days and, along with other stages of analysis, extend the waiting time. It is also worth remembering that even after a positive credit decision in many banks, the physical writing of a loan agreement may take several days. In the era of widespread computerization, it may come as a surprise that completing several items in the template of the document used does not take place immediately, but it is also the moment when you have to wait in some banks. The complexity and multi-stage nature mean that we wait an average of over a month from submitting a complete application to signing the contract.
Loan activation time – the decision depends on the customer
The next stage on the loan path is the mobilization of funds. However, this is the stage where the payout time depends more on the borrower than on the bank. It is true that each bank reserves the right to a minimum 3-day deadline for payment, but this time is counted only from the submission of a set of documents, e.g. a notarial deed confirming the purchase of real estate on the secondary market. Many clients, after signing the loan agreement, are in no hurry to sign the notarial deed, often postponing this deadline for a few or even several days, depending on the provisions of the preliminary contract. The date of signing the notary agreement also depends on the seller of the property. Also on the primary market, the payment of funds results from the payment schedule to the developer, and not directly from the provisions of the loan agreement. Generally speaking, it can be said that currently, on average, borrowers usually wait 7-9 days after signing the loan agreement. However, it can be seen that, compared to last year, customers are trying not to delay signing the loan agreement, when they even went to the bank to sign the agreement even after 11 days from granting the loan.
Waiting time for a loan should be treated as part of the offer
Rarely, which customer has an unlimited time that he can wait, but most often the dates are based on the preliminary or development contract. Therefore, when looking for a loan, you should not only look at the price conditions, but also the process and the dates declared by the banks. However, unfortunately for the borrowers no bank undertakes directly to examine the application within the given time. These are declarations with no consequences for the customer and the bank. The only one can be, at most, the client’s loss to another institution, which can process the application faster and more efficiently and grant a loan. Often, for the client than the installment lower by a symbolic several or several zlotys, more important is “peace of mind” and trouble-free obtaining a loan. A factor that often scares off many customers is the bank’s constant demand for additional documents and explanations. The best bank is not always the one that is the cheapest. Often the choice falls on the one who without unnecessary “ironing” will allocate funds for the purchase or construction of real estate.