How long does it take to get approved for a mortgage at VTB 24?
I would like to start with the fact that before a banking institution makes a positive or negative decision, you need to go through the survey stage. At this step, you must fill out an application - a questionnaire in which you need to indicate all the necessary information about yourself, your work, education, and so on.
How you fill out the application form will be the bank’s choice when making its decision!
How long does a mortgage approval last? Typically, consideration of the application lasts about 4-5 days, during which time the bank checks the information you provide for its authenticity, using various databases, and the bank has many of them. If a client wishes to obtain a mortgage loan on special terms, such as a mortgage using two documents, then he has the right to expect a response from the bank within 24 hours! We talked about how to apply for a mortgage using two documents at VTB 24 under the “Victory over formalities” program in a separate article.
The bank considers such applications first of all, since they are sometimes more favorable to it in terms of the conditions that are presented to the client as a borrower. And if you submitted an online application for a mortgage, then after a banking specialist contacts you, you can expect a decision from the bank within 2-3 days.
Important! The bank has the right to change the timing of consideration of an application for mortgage lending!
VTB mortgage lending conditions
VTB Bank is the largest Russian bank, which has a large customer base from different regions of the country. Potential borrowers are attracted by favorable mortgage terms, namely loyal interest rates and long loan terms.
In 2021, mortgages at VTB have become even more affordable. The Bank has introduced a number of changes regarding the issuance of targeted loans. The main one is the reduction of the minimum interest rate, which is now 9.5%. The reformations also affected the loan term; according to them, the borrower can repay the loan for 50 years.
VTB has developed several mortgage programs for its clients. Each borrower can choose the most optimal mortgage option based on their capabilities. You can buy housing as a share, that is, register common ownership, for example, with a close relative.
| Name of the mortgage program | Annual percentage | Down payment amount | Loan amount | Property | Loan terms |
| Buying ready-made housing | 0.131 | 0.15 | From 1.5 million to 90 million rubles | An apartment from the secondary real estate market, a room in a communal apartment (the room must be in good, habitable condition) | Duration up to 30 years |
| Apartment in a new building | 0.131 | 0.15 | From 1.5 million to 90 million rubles | Apartment from the primary real estate market | Duration up to 30 years |
| Mortgaged property | 0.12 | 0.2 | From 1.5 million to 90 million rubles | Resale or new building, which are pledged to the bank | Duration up to 30 years |
| Mortgage for the military | 0.125 | 0.2 | Up to 1.93 million rubles | Housing from both the primary and secondary real estate markets | Duration up to 14 years |
| Victory over formalities | 0.141 | 0.4 | From 1.5 million to 30 million rubles | Housing in a building under construction or finished | Duration up to 20 years |
| Young family | 0.11 | 0.1 | From 500 thousand rubles to 8 million rubles | New building, which is included in the list of the state corporation "Rosstroy" | From 5 to 30 years |
| Refinancing | 0.107 | Not required | From 1.5 million to 90 million rubles | Primary or secondary market real estate, mortgaged from another lender | Duration up to 50 years |
At the same time, today there is an opportunity not to make a down payment. But it is available only to corporate and salary clients, as well as participants in government programs.
What can affect the bank's consent?
First of all, when considering your application, pay attention to:
- Age of the borrower (VTB 24 Bank issues mortgage loans from 21 years of age).
- Place of your permanent registration (if you apply for a mortgage using two documents, you have the right not to write such information, as this is provided for by this program).
- General work experience (at least one year).
- Current work experience (at least six months at the current place of work).
- Position at your workplace.
- Average monthly salary level.
- Additional income, if any.
- Your marital status, since if you have a spouse and children, the income will be divided among everyone.
- Availability of other loan obligations.
- Your credit history.
- Do you own any real estate? If you want to get a mortgage from this bank using your real estate as collateral, read this article.
- The amount of the down payment that you can provide (is it possible to take out a mortgage without a down payment at VTB 24 and under what conditions?).
- The reliability of your organization in which you work and its scope.
This information plays a big role for the bank!
Possible reasons for refusal of a home loan
The bank may have many reasons for refusing, but the client will never know why exactly the bank refused to issue a mortgage to the borrower! Since, according to the Civil Code of the Russian Federation (part two) dated January 26, 1996 N 14-FZ (as amended on May 23, 2016) of the Civil Code of the Russian Federation, Article 821, the bank is not obliged to explain the reasons for the refusal.
So, what reasons could there be for refusing a mortgage at VTB 24?
- The reason for refusal may be a small official salary, which is why the bank will under no circumstances issue a mortgage, even if you have a large, but mostly “gray” income.
- Failure to meet the basic conditions of the borrower, for example, you will only be 21 years old, but if the age limit is clearly stated in the conditions, then it is better to wait.
- The requested amount is too large, the bank may not refuse, but consider an alternative, based on your average monthly income and calculate your mortgage loan limit yourself.
- Having a bad credit history with numerous late payments and, even more so, malicious evasion of your credit obligations, can perhaps erase any good information about you as a borrower.
- Debt under existing loan obligations.
- Spouse's maternity leave. Oddly enough, for the bank this is truly a serious obstacle, since the income lasts for all family members, and if the spouse does not work, she will have no income, even if she is involved as a co-borrower.
- The place to work does not inspire confidence. If you work as a shawarma seller, it is quite possible that you may be denied a mortgage loan because they will consider your place of work to be a little frivolous.
- The bank may refuse you if you have your own property, but you do not pay utility bills, this means that it is not a fact that this will not happen with a mortgage.
- Children. If you are the only breadwinner in the family, your wife earns little, but you have five children, you may also be refused, because your family’s income will be taken into account for the children first of all. This means that in total you will have nothing left for your loan obligations to the bank.
- Criminal record. It can also influence a favorable outcome, even if it happened a long time ago.
- Your appearance.
It seems stupid, but, as they say, “they are greeted by their clothes, but they are seen off by their minds” - first of all, what people pay attention to is how a person looks. There is a small amount of doubt that if you came to the bank in shorts and flip-flops, this will have a favorable effect on the bank’s decision or they will not notice it. Maybe, but it’s still better to play it safe by dressing in a business style, as is expected in banking institutions.
Now you know why you may have been rejected for a home loan.
Don't be surprised if the bank turns you down. There are probably some points in your application that do not satisfy the creditors.
Verification of official employment and income
Before issuing a mortgage, the bank's security service will also check the borrower's place of work. They will make requests confirming that this person actually works here and receives the same level of salary that was indicated in the certificate. In addition, the bank can even contact the pension fund in order to check the contributions that go there. In this case, the bank has the right not to notify the client about upcoming checks of his income.
Now, of course, there are banks that may agree to issue a loan without a salary certificate. But for this there is one condition, which is that the borrower pays at least 50% of the cost of the purchased housing.
If a person in the status of an individual entrepreneur applies for a mortgage loan, then it will be additionally necessary to provide all the necessary registration documents and declarations for the reporting periods.
In addition to all this, the bank also checks the real estate that a person is going to purchase. This is due to the fact that if problems arise, the financial institution may have problems with it as a collateral. There is also a specialist who can estimate the market value of housing at a given time.
Only after all the documents have been carefully studied will the bank decide to issue a mortgage loan.
If you want to read about how you can quickly sell an apartment, follow the link.
Further actions
Your application has been approved. What to do next? Now everything depends on whether you confirm your information with documents.
Despite the fact that the bank itself may have verified the authenticity of everything you indicated in your application form. Your further actions will be explained to you by a bank employee who will call you back immediately after the banking institution makes its decision.
Usually, the bank manager issues a paper that indicates what documents you must submit to the bank (papers confirming the information you provided in your application form). The manager will also print out an approximate payment schedule based on the criteria you specified. How the preliminary calculation of a VTB 24 mortgage occurs, what the payment schedule is and whether it is possible to repay a loan online through another bank, we described in this article.
If you already have a selected option for applying for a mortgage, then all that remains is to collect all the documents and submit them to the bank for consideration. But, if housing has not yet been selected, then you should make sure that you have time to find a suitable option, since an approved application is valid for only 4 months.
After this period expires, you will have to submit the application form to the bank again.
Once the bank, based on the documents you submit to it, decides that the apartment is suitable for collateral, you can order an assessment report.
How much an apartment appraisal costs for VTB 24 with a mortgage can be found out here.
Next, you can plan the transaction date. After the loan agreement and the purchase and sale agreement are signed at the bank, and the money is transferred from the buyer to the seller, the mortgage lending can be considered completed.
You can find out more about how to get a mortgage from VTB 24, what are the requirements for the borrower and the parameters of the apartment, as well as what mortgage programs VTB 24 Bank offers here.
How to find out about the bank's decision?
If the application is approved, the manager informs the borrower about this at the phone number specified in the application form. If the decision is negative, an SMS notification is sent to the client. Dissatisfied citizens are interested in whether VTB can refuse a mortgage without explanation. Article 821 of the Civil Code of the Russian Federation states that a financial institution is not obliged to explain why a client is denied a loan. When the applicant signs the application, he also agrees to the clause that states that the bank does not disclose the reasons for making an unsatisfactory decision to issue a mortgage.
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