As a rule, people who take out a loan do not want to wait long for their money. Jump to How long does the commitment and payment of the home loan take? If you do not want to wait unnecessarily long, you can ask when applying for a loan, how long the decision is likely to take! The question is how long to wait for the online confirmation of the loan. In order to receive a binding commitment from the bank, the information must be checked.
Mortgage lending: Credit exposures take more time
You should also keep all documents of credit institutions and intermediaries. The Home Loan Directive has been in place for several months – and creates great uncertainty among banks and brokers: while some providers want to back up complaints about a misapplication of the new guidelines with a plethora of documents, others have apparently not yet received the new guidelines.
However, most banks need significantly more time than before for their loans.
Borrowers will need to be even more patient before lenders can cope with legal requirements and settlement times. The Home Ownership Directive clearly requires credit institutions and intermediaries to closely monitor and substantiate this in the interests of their clients.
A long-term assessment has also been carried out since 21 March 2016. For example, we have received two offers from one of our clients for the same financial model, including a building loan agreement – one from an intermediary and with an incredible 109 sheets; the other comes from a large commercial bank and is limited to a few prints with 16 dry pages.
With the first command, the client is probably afraid that he will use this package to sign documents that are read, understood and accepted, but that he misses or that he can not understand. Even without pre-contractual information, without the USDopean Standardized Information Sheet (ESIS) and without illegal consulting documentation, this bid was handed over to the client.
According to our comparison, this bid costs a little less than 27,000 USD more than the broker variant. Who can and wants to read and understand 109 contract documents? If one considers that the documents of this broker for home savings financing, including a Bauspar contract before the new regulation, about 45 sheets, it is questionable whether this extremely defensive attitude of the service provider is in the interest of the client and the broker.
On the other hand, the Kommerzbank makes it too easy if it neglects the new requirements of the Home Ownership Credit Directive in its offer (financing recommendation). In the latter case, service providers should not be surprised if lawyers sharpen their blades in a few weeks or years and take legal action against them because they were unwilling to enforce the guidelines.
Therefore, we can only advise mortgage customers to submit papers given to them by the banker or broker. Financial institutions and intermediaries want to sell such offers because they can quickly increase their commission income with minimal additional income. With an average loan of 240,000 instead of 2,400 USD, they receive 6,200 USD, greedy brokers can also receive 9,000 USD.
The argumentation with which banks and brokers are currently driving forward the sale of construction financing eliminates the problem that significantly higher mortgage interest must be paid for follow-up financing in 10 or 15 years. Often it is not mentioned in this context, that the savings bank can not guarantee and may, that the Bauspar is granted on the right date – even if the directive clearly states that such dangers should be pointed out.
â € œWhoever has opted for a building society savings contract should, as far as possible, keep all calculations of the switching companies and financial institutions in good condition.