State Duma explains how to increase the chances of mortgage approval

What experts advise doing before submitting an application

Before submitting a mortgage application, it is worth checking your credit history, dealing with unneeded credit cards, and confirming additional income. This was stated by Alexander Aksenenko, Deputy Chairman of the State Duma Committee on Construction and Housing and Utilities, in an interview with Gazeta.Ru.

Credit cards and additional income

According to Aksenenko, the bank evaluates not only the borrower's earnings but also their existing obligations. Available credit limits may also be taken into account when making a decision, although the specific approach depends on the bank. If a card is no longer needed, simply paying off the debt is not enough: you must formally close the account and check that the information has been updated in your credit history. Additional income — for example, from a side job or renting out housing — can be confirmed with documents, but the conditions for taking it into account should be clarified with the chosen lender. At the same time, the deputy emphasized, inventing or attributing income that does not exist is absolutely unacceptable. He also urged borrowers not to conceal existing loans: the bank receives information about them from credit bureaus.

If the bank refuses

In case of a mortgage refusal, Aksenenko advised checking the credit report for errors, clarifying the possible reason for the decision, and comparing the requirements of other banks. Increasing the down payment helps reduce the required loan amount. Approval, however, does not mean the payment will be comfortable: in the deputy's opinion, after the mortgage and everyday expenses, a family should ideally keep 20–25% of its income as a reserve and savings. Earlier, Russians were warned about expenses on a mortgaged apartment beyond the down payment — a separate Gazeta.Ru publication of October 23 covers this topic.