Many citizen are educated and earn abroad, but most of them plan to return to the country. Earned money often invest in real estate in the country. Just like foreigners living and working in our country.
The loan for a person who works abroad
A loan for a person earning abroad is already a norm at a bank. All you have to do is document your income and send a certificate of employment – sometimes even without a translation. In this case, most banks grant a standard loan, requiring only that the credited property be in the country.
A few years ago, the majority of the population emigrated, which either did not have a job in the country, or worked for a relatively low salary, and often had no documented income. So they were not potential clients of the real estate market, the more that they did not have a chance to get a loan from the bank.
Contrary to appearances, the economic emigration of citizen has a big impact on the real estate market. Quite large amounts of money have started to flow into the country, which those working abroad send to families in the country – to a large extent they have been invested in real estate in our country. It is estimated that in 2006 around 1.5-2 million emigrants sent USD 6 billion to the country. To illustrate the scale of the phenomenon – it is 50 percent. direct investment in the country. In addition, a large group of emigrants is currently receiving a high level of documented salary compared to realities, thanks to which they take out loans and buy real estate in the country with a view to returning in a few years.
Economic emigration also means more marriages with foreigners. Bankers have also thought about such cases – they allow the possibility of granting credit to a foreigner earning both in the country and abroad. A foreigner who wants to take a loan does not even have to be in a formal relationship with a person of nationality. Joint credit can also be granted to unrelated persons.
Similar offer, but …
Offers for people who earn income outside of the country or for foreigners do not differ much from those for citizen earning in the country. Pricing conditions, purpose and loan period are similar. The distinguishing feature is the level of mortgage loan investment financing and slightly wider documentation requirements.
Banks are unlikely to finance a 100% mortgage in such a situation. property value, but at most 80 percent In the case of persons working abroad, own contribution (10-40%) may be required, depending on the currency of the loan, type of investment, etc. Due to price differences between the country and other countries, when assessing creditworthiness, the bank may adopt a minimum maintenance cost values higher than those set for customers employed in the country.
How to apply?
The process of applying for a mortgage in the case of people earning income outside of the country and staying outside of the country may look twofold. An attorney can be appointed who will deal with the formalities on behalf of persons residing abroad – submitting an application for a loan, signing a loan agreement, submitting an application for payment. Such power of attorney must be established on a special bank print by the consul.
In addition, the consul must certify the authenticity of the borrowers’ identity card and such a certified copy should be sent with the power of attorney to the bank. The second option – the bank sends customers to complete all documents – a loan application and other forms, which must then be completed with a consul and sent back to the country.
Documents that the bank may request
• standard documents related to real estate (the type of documents required depends on the purpose of the loan),
• documents confirming income: – employment certificates, also contracts or agreements confirming employment, – tax declaration, – certificate from the bank credit register, ie the equivalent of the credit check, about the customer’s credit history in the country in which he is employed,
• the history of the invoice influenced by the last 12 months,
• the requirements may also include a residence or work permit, as long as the borrower is in a country where such certification is required. Most banks accept documents in English, in other cases they should be translated by a sworn translator. Note: Not all banks require all of these documents, so you should always make sure what exactly you need to provide.