THE PURPOSE OF CONSOLIDATION CREDIT
The consolidation loan is intended to cover our previous financial liabilities. If we have many different loans, we can try to consolidate them. Most often, we consider this option in a situation when our financial situation has deteriorated or we have so many credits that it is impossible to repay all installments on time. If we realize this fact relatively quickly, taking a cash consolidation loan is not that difficult. If, however, our situation is not too cheerful, we can also take advantage of a mortgage consolidation loan.
WHEN SUCH CREDIT HAS BEEN SUPPORTED?
A consolidation loan is also a loan. Before the bank grants us such a loan, it will examine our creditworthiness at the Credit Information Bureau. If we have previous debts, and we do not pay our debts in a timely manner, it may turn out that we will have significant difficulties in obtaining a consolidation loan. In addition, the cash consolidation loan is based precisely on our creditworthiness. If we do not have it, we will not get a loan. In this situation, the bank has no security or guarantee that we will be able to repay our loan. The bank is based in this situation only on our earnings.
The mortgage consolidation loan assumes, for the loan repayment guarantee, the establishment of a mortgage on the real estate. When our financial situation is not very good, and we are the owners of a property, we also have a chance to consolidate loans. Thanks to this, the bank attaches less importance to our creditworthiness because its main security is not our income anymore, but the established mortgage for the benefit of the bank. The downside of this is the fact that when we pay off the consolidation mortgage loan, we can not sell the property. It is at this moment the collateral for the bank, and at the same time the only collateral for the loan. To take a mortgage consolidation loan, we must be the owner of the property on which we want to establish a mortgage. We must therefore have a property to apply for a consolidation mortgage.
If we are trying to obtain a mortgage consolidation loan, in addition to the basic documents necessary to obtain each loan, such as:
– one or two documents with a photo to verify our identity,
– statement of earnings,
– documents confirming the previously contracted obligations that we want to consolidate,
the bank will also demand from us such documents as:
– property ownership act – to apply for a consolidation mortgage we must be the owner of the property,
– appraiser’s assessment of the value of the property,
– confirmation that we have established a mortgage on the property in favor of the bank that grants us the loan.