Why Sberbank refuses to issue a mortgage: list of reasons, improvement of credit history and solvency

When applying for a mortgage, you must carefully study the bank's requirements for the borrower and the property being purchased. If it is difficult to do this on your own, it is better to seek help from specialists - a mortgage lawyer, a credit broker, a bank employee. A serious approach to the matter allows you to significantly increase the chances of receiving an approving decision. Experts will tell the borrower why Sberbank refused to issue a mortgage.

What to do if Sberbank refuses to issue a mortgage

Most Russian citizens use the services of Sberbank: receive salaries and pensions, make various payments and money transfers, open deposits, and take out consumer loans. Sberbank PJSC products are always of high quality, meet customer requirements, and are easy to obtain thanks to an extensive banking network and a convenient mobile application. That is why, when it is necessary to obtain a mortgage, the choice of most people is Sberbank.

The financial institution values ​​each client, is interested in increasing the number of consumers of its services and has the financial capacity to issue a large number of loans. However, the selection of applicants for a mortgage loan is subject to strict requirements.

The number of unapproved applications out of the total number of applications submitted is no more than 20%. However, people who fall into this percentage often do not know what actions to take.

The financial institution has the right not to explain the reasons for its refusal. However, a potential borrower, after once again analyzing the submitted information, can understand the reason.

The actions of a client who has not been approved for a mortgage at Sberbank may be as follows:

• finding out the reason for the lender’s refusal and correcting these shortcomings. If the reasons can be eliminated in a short period of time, a re-application is submitted within 60 days;
• offer the bank a higher down payment;
• find another lender.

The easiest way to get a home loan if Sberbank refuses is to find a new lender. However, not all citizens agree to take out loans from another financial institution. In this case, you should study the reasons for the refusal, correct them and submit a new application.

Reasons for refusing a mortgage after approval

If the main borrower and co-borrowers have received approval from the bank, the last stage remains: real estate appraisal. Employees of the financial institution will meticulously check the future housing. Refusal of a mortgage after approval is possible if the borrower fails to select an apartment or house.

Refusal due to incorrectly selected real estate is possible in the following cases:

• the apartment is located in an old house or a house intended for reconstruction (demolition);
• the price of residential premises is seriously overestimated or underestimated;
• minor children are registered in the apartment (house);
• there are open court decisions in which mortgage housing appears;
• the borrower is trying to take out a loan for a down payment.

Attention! Often, a mortgage is denied due to the fact that the apartment has undergone unauthorized redevelopment or is in an uninhabitable condition (there are no necessary communications, plumbing, or major repairs are required).

Look at the list of redevelopments that the bank will allow before you finally decide on the property.

Refusal after approval is also possible if the borrower or co-borrower, after receiving approval, took out a consumer loan “to celebrate.” Remember that when checking a property, the bank also checks the borrowers again! And in practice, Clients have been burned more than once.

When the borrower's application is approved, and the bank reduces the rate, the employee can send the application for re-consideration. After all, signing a loan agreement at a reduced rate is much more profitable. But quite often the bank refuses when you re-submit an application due to a reduction in the rate. The reasons for the refusal are not entirely clear.

Why does Sberbank refuse to provide a mortgage?

When considering submitted applications, the bank tries to protect itself from possible risks. He also analyzes the client’s ability to pay a mortgage, support his family and make mandatory monthly payments without attracting additional borrowed funds.

Sberbank has a short list of reasons for refusal:

• The potential borrower has unpaid or overdue debts. These could be debts to the management company, traffic police fines, unpaid taxes, fees, outstanding loans issued from other banks.
• Problems with credit history. This list includes both a negative credit file and no credit file at all.
• Incorrect information in the application. These are technical errors, an incomplete package of documents, as well as inaccuracies identified by the bank's security service when checking client information.
• Low income or inconsistency with the requested loan amount.
• Problems with the applicant's personality and background. These are problems with the law, outstanding debt from bailiffs. This category includes past or present bankruptcy proceedings, unkempt appearance, or inappropriate behavior during a credit interview.
• Low technical and quality characteristics of the purchased property.

No one prohibits the borrower from submitting an application several times. The bank is always interested in attracting new and reliable clients. However, if each new application is accompanied by a negative decision, the citizen risks being included in the list of unreliable persons. It’s better to immediately correct the shortcomings, get the desired approval and move to a new apartment.

Why have banks become more cautious?

The decrease in the approval rate for mortgage applications compared to March is quite natural - against the backdrop of the pandemic, real incomes of the population, according to Rosstat, fell by 8% in the second quarter - this is a record quarterly drop since 1999. “Reducing rates (more on this here) can only partially compensate for the fall in income. In addition, a number of banks adjusted their risk policies, which could also lead to an increase in the percentage of refusals. Also in May-June, there was a sharp increase in demand for preferential mortgages at 6.5%, for which there are a number of restrictions - some applications could simply not meet the conditions of this product,” says Mikhail Doronkin, head of bank ratings at the NKR agency.

It is still premature to talk about bright prospects for remote sales in mortgages, even despite the fact that in recent months there has been an increase in the share of issuing large collateral loans online, says NBKI Marketing Director Alexey Volkov. In his opinion, there will be no serious dynamics in the issuance of online mortgages until the end of 2021.

Among the main limiting factors, Volkov notes that consumers are accustomed to applying for loans at a bank branch when it comes to large amounts. Secondly, banks face specific risks of online lending. “But this is more of a technical issue. Banks’ access to state databases eliminates a significant part of the issues - now they can remotely verify a significant amount of data about the client and collateral,” says Volkov.

Most likely, we can expect an increase in the number of approvals by several percentage points, but the figure will probably not reach the level of May, says Oleg Lagutkin - mortgage applications take longer to process compared to other types of loans.

According to Mikhail Doronkin, the increase in the number of approvals will be largely determined by the pace of recovery of economic activity and the dynamics of real incomes of the population. Recovery is possible by the end of the year if there is no second wave of restrictive measures, adds Ekaterina Shchurikhina, junior director for banking ratings at Expert RA.

Improving your credit history

Even if the borrower has a high level of official income, errors in the credit history have a huge impact on the rejection of the application. The credit dossier is checked first; it is this that tells the future mortgagee the applicant’s relationship with financial organizations.

Experts recommend checking your CI in advance by sending requests to the BKI. If it has problems, they should begin to be corrected. This will take at least a year. Consumer loans for purchasing expensive household appliances or using a credit card will help.

Important! Debts must be repaid strictly according to schedule, avoiding late payments and early payments.

Useful tips

• When filling out the form, think about what amount you will indicate in the “expenses” column. You should not reduce or increase them too much. It will be very strange for a lender that, for example, you spend only 1,000 rubles a month on food.
• Find a co-borrower with a good income level.
• After a few years, you can reissue the loan on more favorable terms by using refinancing. Read more about this program here.
• Think about all your sources of income. This could be funds received from deposits, renting an apartment, pensions, scholarships, various allowances, etc.
• Try to provide valuable property as collateral.
• Make sure you have a large down payment. This will endear you to the bank and eliminate the need to collect a huge package of documents.
• Contact a brokerage agency. Read more about how it can help you at this link.
• Do not hide your criminal record, the number of dependents from the creditor, and do not falsify certificates. The bank needs the most accurate information possible.
• Before you apply for a mortgage loan, do everything you can to improve your credit history. Real methods are described at this link. Correct errors in your dossier if they were not your fault.
• If the refusal is due to the selected housing not meeting the requirements, look for another option.
• It is desirable to have a higher education and extensive work experience in the same place. This guarantees stability and minimal risks.

This financial institution tries to cooperate only with good and responsible clients. Therefore, if you have taken out loans from banks more than once and successfully repaid them without violations, then you have a very good chance of getting your mortgage approved by Sberbank.

Question-answer section:

2020-07-08 12:25

Olga

Hello, my husband works, I don’t work, I receive a pension and social benefits for a disabled child, will they approve a mortgage for us in a new building?

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Consultant

Olga, if your husband’s income is official, and your total payments are enough to service the loan, then they will approve. For families with disabled children, a preferential mortgage also applies, as for families with 2 children, i.e. from 4.5%

2019-03-15 21:42

Victor

I was denied a mortgage, I don’t know the reason, but they sent me an SMS approving a loan with a smaller amount at a higher interest rate. Indicate the logic in the bank's actions.

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Answered by Elena Sharomova, expert on credit and financial products

Victor, most likely, the scoring system has determined that the amount you requested does not correspond to your income. Therefore, a smaller amount is offered at a higher% to cover the possible risks of non-refund on your part

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04/26/2018 Information about the authors | Category: Mortgage | Sberbank

Increased solvency

Financial solvency is the second most important factor in obtaining approval for a mortgage application. The borrower's monthly income should be enough not only to pay contributions to the lender, but also to maintain a family, apartment, dependents and purchase basic necessities. Sberbank admits that 50% of the income can go to the lender, and 50% remains with the borrower.

If the level of income is insufficient, the borrower can attract co-borrowers (no more than three people), find additional income or change his main job.

Important! If your income is not enough, you can purchase cheaper housing or increase the loan term, thereby reducing the monthly payment.

Bank requirements for the borrower

Sberbank sets strict mandatory requirements for the borrower:

1. Citizenship of the Russian Federation. Foreign citizens will not be able to get a mortgage/loan.
2. Age limits. The client must be over 21 years of age at the time of application. Second age threshold: 75 years. This is the maximum age for making the last payments.
3. Stable income and employment. Total work experience – at least 1 year, time worked in the last place – from 6 months. The amount of wages is also taken into account.
4. Providing the necessary documents. One of the most important papers is the 2-NDFL certificate, confirming the client’s solvency.

The video is dedicated to the topic of mortgages. The author answers the question of to whom banks give a positive answer and what are the main requirements for the borrower. Prepared by the Mortgage Secrets channel.

Unsuitable property

The purchased property becomes the property of the borrower after the transaction is completed. However, it remains pledged to the bank until the debt is fully repaid. If the obligations are not fulfilled, the lender receives the right to sell the property and return the funds spent to finance its purchase. Therefore, the same strict requirements are put forward for the apartment as for the borrower.

A preliminary study of the mandatory criteria and selection of suitable housing will help correct the situation. If it is difficult to choose a property on your own, it is recommended to use the DomClick program from Sberbank or the services of a professional realtor.

Register ownership

You can register ownership of an apartment in a new building only after drawing up cadastral passports for the entire property. That is, you will have to wait until the other residents receive the keys and draw up an acceptance certificate.

A good developer will definitely inform buyers about the start of apartment registration and send a list of documents for the registration authority.

To register property rights you will need:

• a statement from each party to the transaction;
• passport of the buyer and the seller’s representative;
• mortgage loan agreement;
• contract of sale of an apartment;
• receipt of payment of state duty.

After repaying the mortgage debt, the borrower must submit an application to the MFC to remove the encumbrance.

You need to bring:

• a document from the bank confirming full payment of the debt;
• mortgage loan agreement;
• homeowner's passport.

You must register ownership of an apartment within 120 days.

We increase the chances of approval

Let's start from the very beginning - by filling out the application. Banks will not approve a mortgage for a poorly prepared client - what can you do to increase your chances? You need to know all the bank’s requirements and the main reasons for a possible refusal to issue a loan.

The likelihood of getting a loan will increase if:

• income allows you to freely make monthly loan repayments. The bank considers a “white” salary and documented additional income, for example, from renting out real estate and part-time work. Loan obligations should not exceed half of the borrower's income;
• the client makes a down payment of more than 20% of the loan cost;
• financially wealthy co-borrowers or guarantors are attracted, and they satisfy all the bank’s requirements;
• the borrower’s employer confirms his data and income and gives positive recommendations;
• the client has no other current loans and debt obligations, credit cards and writs of execution;
• real estate or vehicles of the borrower (co-borrowers) are provided as collateral;
• The lending program has been accurately calculated. The application specifies the optimal loan amount and repayment period;
• An extended package of documents is provided. To the required list you can add recommendations from the employer, a certificate of additional sources of income;
• The mortgage application is submitted to another person, such as an immediate family member, and the borrower becomes a guarantor for him. This option is suitable if the borrower’s profession is on the list of risky professions for the bank. Firefighters, rescuers, police officers, bodyguards, and creative workers can use this alternative.

Requirements for online mortgage documents

Methods for assessing the creditworthiness of a mortgage borrower

Features of the procedure

An application for a mortgage can be submitted at one of the Sberbank branches or on the bank’s website. The following describes how the bank approves the submitted application.

How long to wait for a decision?

According to information on the Sberbank website, processing information and making a decision takes 2-5 days, excluding weekends and holidays, but in practice it can last longer , up to several weeks. If a client receives a salary on a Sberbank card, the review process is faster due to the fact that the bank does not need to submit requests to other organizations and wait for a response.

When considering an application, it may be necessary to submit additional documents to the bank.

How are they notified of the result, how do I find out if the application has been approved?

The answer from the bank may come in the form:

• call from an employee;
• SMS notifications;
• letters to email.

Sberbank does not notify on time about the fate of the application in all cases. Therefore, 5 days after submitting the application, the client should contact the branch to find out whether the application has been approved or what is the current stage of its consideration, since after signing the agreement it will take up to 30 minutes to transfer funds.

How long does it last?

From 2021, the validity period of a decision to approve an object’s application for a mortgage is three months, and begins to count not from the moment the application is submitted, but from the moment it is approved. This time is given for:

• search and evaluation of real estate;
• registration of property and registration;
• submission of the necessary documents to Sberbank.

If the client fails to meet the approval deadline, the mortgage application process must begin again.

Rules for obtaining a mortgage

You can be denied a mortgage for various reasons. In order not to take risks, you need to prepare a set of documents in advance, check your credit history and choose a good apartment to buy.

There are three simple rules that will help you get the desired loan without refusal:

1. Gather all the necessary information. Before applying, study mortgage offers from all banks. Try to find out all the intricacies of loan approval in each organization. Don't overlook possible fees and the convenience of making monthly payments.
2. Send applications to several banks. Choose the most profitable options and try to get approval for them. Many banks offer to submit an application online. This is possible in Sberbank, VTB and other large banks. This way you will save time and increase your chances. It is not uncommon for one bank to issue a loan without problems, but another refuses.
3. Get help from professionals. An experienced loan specialist will not only help you save time, but will also increase the likelihood of a positive decision. Sometimes in such cases it is possible to save on the interest rate, because banks can make favorable offers to mortgage brokers.

Who won't get a mortgage?

The bank may refuse without stating the reason for its decision. Typically, mortgages are not given to those who do not meet the conditions of a particular bank, or in the following cases:

1. People with a gray salary or self-employed.
2. With low solvency.
3. People in creative professions who receive money upon completion of a project. Even significant fees cannot always convince the bank of the solvency of such a client.
4. Individual entrepreneurs and LLC owners. Sberbank is the most loyal to such borrowers.
5. With bad credit history.
6. With a large credit load.
7. If you have a criminal record and debts to bailiffs.
8. In case of problems with the employing organization. Your employer may be behind on taxes, pay loans, or be in bankruptcy.