The 4 Most Common Obstacles That Prevent Mortgage Approval

Do you have unpaid loans and arrears on taxes or duties, a risky job or insufficient income? Eva Šablová, director of loans at FinGO.sk, explains in which cases you are a risky customer for the bank and you will not be approved for a mortgage.

1. Debts, delays

The bank must ensure that you can repay your mortgage without any problems. Any risky movement on your account, late loan repayments or any arrears or other debts to government institutions or even foreclosures raise doubts about your responsible financial behavior and mean a credit freeze until they are resolved.

The most common obstacles:

• negative entries in the registers of the health and social insurance company, financial administration
• Delays in loan repayment, repaid loans
• Enforcement from another title, personal bankruptcy declared
• if you have deferred repayment of one or more other loans
• more rejected loans in the credit register
• risky movements on the account, e.g. for gambling, betting

TIPP: First, pay off all your debts and then check for the deletion of negative entries from the registers. Depending on the specific reason, you can then apply for a loan in a few weeks or months, or after 5 years in the case of personal bankruptcy.