Independent credit expert

The bank employee verifies that all the certificates, documents, and forms required to apply for the home loan are included in the home mortgage loan application “package”. If something is missing, it tells the credit broker and the client and states in the bank’s management system that it is “under replacement”.

(It is important to note that in most cases, the credit assessment process will only start after you have submitted a complete home loan application package from your credit broker or client – except in some special cases, such as pre-credit valuation)

Verification of the BAR (KHR) records


Based on the personal data of all the parties involved in the home loan transaction, the bank’s credit administrator inquires from the Central Credit Information System whether there is any negative information about the participants. Any active or passive KHR (BAR list) information will exclude home loan. Passive KHR status begins when the entire debt has been repaid by the debtor. Passive status remains for only 1 year (compared to the previous 5 years), meaning that you will not be able to borrow a “negative borrower” until one year after the overdue loan has been repaid.

Are Home Loan Application Forms Completed?

After the above, the paper you submit will be scanned one by one to make sure that all required data is filled in and that the appropriate options are ticked. If the bank clerk finds a mistake, ask the credit broker and the client to fix it.

Are certificates and declarations completed correctly? Are the deadlines for documents valid?

Are the certificates (eg NAV certificates, employer’s certificates, bank statements and statements) correctly filled in, are they required and required by the bank, are they signed and, where appropriate, sealed? Has any certificate expired or expired? The employer’s or the tax authority’s certificate may be valid for 30 days from the date of issue, after which a new certificate must be submitted. You can always seek the help of your independent credit broker.

Check the minimum conditions and parameters of a home loan claim.

It is important to clarify at the outset whether there is any fact that prevents you from applying for a home loan. For example, the length of the client’s employment relationship, the age of the claimant (s), and the existence of documentation regarding the persons who may be involved. (eg, guarantor, co-claimant, beneficial owner). The assistance of a credit intermediary is also essential in clarifying this information.

2.) Mortgage Credit Review Process:

2.) Mortgage Credit Review Process:

data recording
The credit administrator records the customer and real estate details and contact details of the home loan application in the financial institution’s administrative system and all other details. These systems process the process step-by-step, so usually the system does not “allow” the process until something is missing. This is why it is important that you submit a complete mortgage loan application package to your independent credit broker or client. Your independent credit broker will also help.

Ordering a valuation
For most banks, the management system automatically orders the valuation at the time of recording, usually by randomly selecting one of the valuation partners.
Of course, there are lenders who can carry out a valuation before applying for a home loan, with one of the bank’s designated valuation partners. Valuations are usually valid for 90 days, after which they will require a new one when you apply for a home loan, but in this case, a review in most places is not enough at full price.

The appraiser is looking for the client


At the given phone number or other contact, an appointment will be made to evaluate the property. Usually the property owner must be present at the valuation, but this is not mandatory everywhere. Most banks do not issue a copy of the valuation, which is included in the valuation form and is signed by the person applying for the home loan.

Returning the valuation report to the bank


The appraiser sends the appraisal either digitally or on paper to the lender. The valuation received may be overridden or even changed by an internal real estate expert who is a bank employee. The transaction value and collateral value of the property, the location of the property, the condition of the property, the type of masonry, the roof and the ownership of the property are monitored and recorded. The creditworthiness of the property is determined.

Closer control of personal “parameters”

The personal details of each person involved in a home loan transaction are carefully reviewed by the credit administrator and the bank’s decision maker. They are checked for their authenticity and adequacy. At this stage, your personal documents and parameters will be judged, and if something goes wrong, you can “muck up” your mortgage claim or request a refund from the client or his or her independent credit broker.

Income and Credit Testing (Credit Test)

At this stage, you determine what amount of home loan the customer is entitled to based on their income. If this amount is less than the loan requested, they will not automatically reject the loan application, but will offer a lower bid to the loan applicant or require the involvement of a guarantor, co-claimant, debtor (different names are used per bank). It may even be the case that after negotiation, favorable details are found and the home loan amount can be raised.
It is checked how much income the lender can take into account based on the certificates and statements submitted. What is the customer’s cost of living and whether they are paying off another loan in addition to what is being claimed. Are there any extraordinary or regular expenses (eg child support) on your income? Do bank statements contain a rejected item due to lack of coverage? If you have an overdraft credit line, how does the customer manage it, often exceeding their credit line? If so, how much? Do you receive regular income (eg child support, rent from the rent) that the bank can count on as a supplement?

Decision or rejection


Normally, the bank will make a formal decision within 1-2 weeks of the property being appraised. How big is the loan amount, for how long is the lender willing to pay it and under what financial conditions?
It is important that the bank usually maintains this decision for 2 months. The loan agreement can be signed within this period.

3.) Concluding a contract

The bank’s credit administrator will contact the customer after the credit decision and offer the customer a date at which the bank can sign the loan and mortgage agreement. The personalized format of the loan agreements is completed. There is a basic contract, which the bank administrator and / or lawyer modifies, complements and fills in with the customer information.

Banks have been forwarding the contract to the client for prior screening since the Fair Banking Act. But you can also find the general contract template on the banks website after some searching. But this is what your independent credit broker will help you with.

Signing of loan agreement, notarial deed

The loan agreement (and the mortgage agreement) is first signed at the bank branch and then duly authenticated by a notary or a notary. It can be either a unilateral or a bilateral notarial deed. In most cases, a one-sided authentic instrument is prepared, where the debtor (s) is enough to appear, without the bank credit administrator or their other signatories. In this case, the client signs a unilateral declaration of debts in favor of the bank. In the case of a bilateral authentic instrument, it must be signed by the creditor and the client at the same time.

In many cases, a notary goes to the bank branch, so a bank loan and mortgage contract can be signed with a deed. After the contracts are signed and the bank’s mortgage rights appear on the title deed, the lender disburses as indicated in the authentic instrument


Dennis Ochoa