finance_czech

WHICH DIFFICULTIES YOU CAN FACE BEFORE OBTAINING A MORTGAGE

The topic is very broad. I will tell you in parts. But from my experience, everything can happen in the process of approving a mortgage loan😅

Once I had a case:

The client was employed and has provided the bank with proof of income from his employer on the bank's letterhead (a standard required document). The bank is required to verify this data, and they usually call the company's accounting department to verify this data.

And then something went wrong, because the accountant, who communicated with the bank, had probably bad mood that fay and answered either rudely or not what was expected at the bank. But the bank was clearly not satisfied.

As a consequence, the bank requested a lot of additional documents on income (even though the client's bank statement showed that the salary came regularly and from the same company).

In addition, we provided a tax return, an official form of income for the previous year, proof of social security contributions and an employment contract with all the supplements. Only after lengthy discussions with the bank's mortgage officer, with whom I work, and the risk department, the income was accepted and the mortgage was approved.

When I say that the bank branch will never work with you so thoroughly and carefully if you apply directly, without a mortgage counselor, I am not exaggerating. This application would definitely have been rejected, which means a ruined credit history and the inability to get a loan for several more years.
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For each application, I do a lot of work on the side of the bank, which customers often do not realize, and get better conditions than those offered to standard customers. So don't even hesitate to ask the bank for a mortgage yourself or through a consultant, and sign up for a consultation with me 👌🏻

PAYMENT PROCESS WHILE BUYING/SELLING REAL ESTATE IN THE CZECH REPUBLIC

I remember my excitement when we were selling our apartment in Prague. It was my first real estate transaction experience here.

In my previous experience, the standard option for settling real estate transactions is safe deposit boxes. Here it works differently, the payments are made noncash through a special account (účet uschovy), which can be arranged:
✅ with a lawyer (the most popular way);
✅ at a bank;
✅ with a notary (less often)

The fee for this service ranges on average from 5 to 20 thousand CZK (usually, if you use a real estate agent, this is included in the fee. But it may be otherwise by agreement of the parties).

The basic principle of such accounts is that the seller receives his money only after the buyer becomes the owner of the property. Until then, the money from the buyer is kept on the account. The whole process of registration and delivery of documents is controlled by the one who has the account (bank, lawyer, notary).

Thus, to carry out transactions of purchase is quite safe process in the Czech Republic.

Here, too, of course, there are some risks (withdrawal of the license from the bank, as happened with Sber, unfair lawyer - all lawyers must have a license and insurance for emergencies, but as practice shows, even here can be cheaters - recently there was a case where the lawyer ran away with the client’s money😳). But in general, these are exceptions, and usually such deals go smoothly.

Never make any settlements with real estate transactions in cash or directly to the seller's account (the exception is the reservation deposit: often the payment goes straight to the seller's or real estate agent’s account, this is normal practice).
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If you have experience with transactions, please share which account you used and how convenient and smooth it was. Also, I would appreciate❤️

Hi everyone! A few greeting words to all new people here:

Welcome to my new English speaking account which will be about Czech mortgages, financial news, sometimes about daily life in Czech Republic with kids and dogs 🙂

I’m working mum of 2 kids (3rd one is coming soon🤰🏻😅), happy owner of cutest dog ever - bichon Luna. I’ve been leaving in CZ for more than 13 years, 2 years ago moved from the city flat to the house outside of Prague (best division for our family).

But mainly I’m here for you to tell about mortgages in simply words. You can contact me using DM, WhatsApp, email or phone number for questions, consultations, bank mortgage proposals or business cooperation.

I have financial background for more than 18 years (international banks and corporations) and 7 years in Czech mortgages (I’m certified consultant working with almost all main banks in CZ). So I would tell you here in simply words about finance and mortgages.

I promise, that it will be useful and you’ll like it.
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Welcome and enjoy❤️