Financial liabilities are useful when the sum of savings is not enough to pay for a housing investment. Sometimes a cash loan seems more advantageous and at other times a mortgage. And can they be combined? It’s time to find out.
You don’t have to be in financial trouble to turn to a financial institution for help. Last year, the number of borrowers in the mortgage sector alone exceeded 4 million. Some of them have just entered into an agreement with the bank, under which they undertook to repay installments over the next few or several years.
During this time you will probably need to renew your apartment or buy the right equipment. Fixed fees, loan installments, renovation costs – again, savings are not enough and there is a prospect of reaching for a cash loan for any purpose. Is it possible?
Conditions for granting a cash loan
It is worth starting considerations with the form of financing. It is better to take a mortgage or cash. Banks apply very strict customer verification only for mortgages. It is usually a long-term commitment made to several tens or several hundred thousand. It is therefore not surprising that the process of checking creditworthiness can be prolonged and is so detailed.
In the case of cash loans, this exact procedure is not practiced. Yes, banking institutions use credit information databases to check their debt.
However, even when there are several delays in credit history, the bank may look favorably at the submitted application. The value of a single cash loan is a relatively low amount within a few thousand zlotys, which is why the risk for the bank is equally small.
I have a cash loan and I want a mortgage. What to do?
The situation in which we used to take a mortgage and we want to take cash now basically does not change. It’s even better if someone already has credit experience. Systematic payment of liabilities is a sign for the bank that it is dealing with a reliable customer.
This is a form of financial training before the marathon with a commitment in the background – a mortgage. Of course, an unpaid cash loan will have a negative effect on the borrower’s financial standing, but a lot depends on the level of his monthly income and prospects for earnings in future years, and therefore on his creditworthiness.
When both liabilities are incurred at the same bank, the chance of obtaining preferential conditions increases. Institutions, and above all its representatives, are interested in acquiring satisfied customers, so they try to choose the right solution for the individual situation. And even when minor problems arise, the answer may be a consolidation loan, thanks to which one repayment date is obtained and generally – a lower monthly installment.