As I told you in the previous article, among the most important steps of the evaluation is to carry out the inspection / viewing.
What does this step entail? After receiving the necessary documentation, the assessor agrees with the seller or buyer the date and time of the inspection of the apartment. On the appointed date, the assessor inspects the apartment and signals any differences in the representation of the dimensions of the apartment and its characteristics in the documents compared to the physical situation in the field. The assessor has the obligation to record in the evaluation report all the inconsistencies noticed.
When it comes to granting a loan, banking institutions have quite strict criteria in accepting real estate under guarantee. Following the thorough analysis of the documentation and findings of the assessor at the inspection of the apartment, issues can be reported that will make the loan granting process more difficult.
We will briefly present one of the most common situations that can influence the quick obtaining of a loan and that you can avoid from the very beginning.
One of the most important conditions imposed by the majority of creditors (banking institutions) is represented by the similarity of the information in the survey (outline of the apartment) and the physical situation in the field, from the date of the inspection. Not always the physical situation in the field coincides with the survey of the apartment, and the interior changes can be difficult to notice if you do not work in the field. The reasons are diverse, from the seller's desire to repartition the apartment by dismantling some walls or building others, dismantling the storage spaces (pantry or closet), to building a balcony. If the seller does not update his cadastral documentation (the survey) after the interior changes have been made, the buyer may risk losing the financing, the creditor may refuse to take into warranty a building that does not have the updated documentation or to postpone the granting of the loan until the cadastral documentation is updated, which may lead to additional costs for the owner or buyer.
The difference between the cadastral documentation provided by the client and the Land Registry extract or the property deed is another situation that can make it difficult to grant a loan. This difference is often neglected by buyers or sellers, but to which creditors give importance, which is sometimes a decisive factor in the granting of credit. As a result, it is important to pay increased attention in checking the correctness of the information in the documents of the apartment, since this can mean wasted time and money, leading in the worst case to the loss of funding and even the cancellation of the transaction.
So, our recommendation is that before buying or selling an apartment to make sure that the situation in the documents coincides with the physical one of the apartment. Thus, the duration of the loan granting process will be greatly reduced.
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