What determines the maximum amount of credit that banks provide?

There are several possible limitations:

• Firstly, these are the income of the loan applicant, as banks have different creditworthiness requirements. It is also important to recognize income from various sources as legitimate;
• Another limitation for obtaining the maximum loan amount applied for is the percentage of the disbursed amount based on the value of the property serving as collateral. On average, it can be relied upon around 80% – 90% of the market value of the real estate, with the percentages being linked to the location of the property, the type of building construction (the type of structure), as well as its condition.

Is it possible to finance 100% of the purchase and even receive additional funds for renovation and furnishing?

Under certain conditions related to loan collateral and the borrower’s income, some banks would provide this opportunity.

How long should be anticipated from signing the preliminary contract to the notarial execution of the transaction?

It is important to take into account the deadlines of the banks for reviewing the applicant’s income and preparing the expert assessment of the property that will serve as collateral. If a preliminary agreement is signed with a deadline of about a month until the notarial execution of the transaction, it should be noted that this deadline may prove insufficient and put pressure on the buyer in terms of time. Administrative deadlines for issuing certain mandatory documents for both the applicant and the seller of the property, necessary for the bank, should be taken into account. It should be checked whether all the documents with which the seller certifies his ownership are available and if not, what is the necessary time to obtain them. For these reasons, it is mandatory to provide a longer period in the preliminary agreement than the standard 30 days.

Author: Stanimir Stankov / VIP Client Manager, New Home 1 / tel .: 0894 555 690

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