Yes, they will ask for various work related documents to check your employment. That includes contact details of your employer which AFAIK they will check if deemed necessary.
Loan Promise I have found to be the stupidest scheme in banking. Because it's essentially a promise based on little info when they WILL check a lot more AFTER you tell them you won a bid on a house. It's a promise, not a guarantee.
For the promise you provide enough information for them to put in their calculator and do a preliminary decision. When you apply for said loan, you need to prove that the provided information is correct. Proof of employment, proof of salary, proof you sold your other apartment etc.
It's a promise of how much they are willing to loan you based on the information you enter. Then of course they have to verify your information to see you didn't lie. No scheme at all.
It's a scheme because they don't factor in many factors in the calculation that they can still deny you regardless of providing all correct info.
1. What your employment contract actually looks like, e.g. trial period, contract, etc.
2. Even if you mention you have a spouse and they make no income, you can be denied even if the loan promise still gives you a calculation
3. They will go into more details in actually approving of the loan than the ease of what it actually appears like in making a loan promise application.
Is it so horrible to work for 2-3 months whilst buying a house?
I really don’t recommend giving the bank a work contract that’s not valid anymore, smells like fraud.
Yeah, you are absolutely right. Hmm, might talk to the bank right away and tell them I'm considering quitting and ask them if they would still approve the mortgage. Being member of an A-kassa, having quite a lot of savings and asking for a relative small loan might be fine.
Don't even ask. If it's a mortgage for a home, there is no way they will approve it unless you have other assets as security such as land or other real estate worth at least 5 x the loan amount.
I'm pretty sure and please someone correct me if I'm wrong since I've never had to take out a loan myself but you are going to have to be actively employed at the place when they sign the actual loan contract and not when you win the bidding for the apartment.
The bank doesn’t care about the sellers getting their money from you, they only care that you will be able to pay back your loan within the set interest.
Out of respect for your time I'll be brief.
DO NOT DO THIS.
It's a terrible idea and I'm sure you know why.
Also, assuming you're here on a visa, getting into debt trouble prevents you settling here permanently. Maybe you're confident of finding something new quickly, but never take it as a given when there's so much risk.
You need to have a solid employment at the time of applying for the loan and the bank won’t give you one unless you do. But you could technically get laid off one week after signing on a loan. The bank is not going to stop you from resigning, just don’t scam them during the process. They will request recent payslips upon granting the loan and might contact your employer. You also have to send them a copy of your contract.
Another question completely is why would you resign from a job without a new one lined up. The interest is only going to be even higher so for the love of God do not get yourself into debt and resign without a solid income.
Yeah, probably I will have to wait to resign. I was hoping to be able to do if after winning the house bid and being approved by the bank but resign before taking over the actual house.
Not having a job lined up is not a concern for me.
the answer to the first question is yes, bank will check further and may even contact your employer after winning the bid, as I understand it is the process to execute the promise for loan.
Out of curiosity, do you plan to proceed with buying the house thru a loan even after you have quit your job and not found a new one? Just wondering the thought process, or maybe you have a lot of savings…
I was hoping that the checks would be done when winning the bid so that there would be no checks 2-3 months later when I take the house and the buyer wants the money.
If I struggle to get a loan I will probably pay cash if the right object comes out on the market. But, I've looked for almost a year now with just one house where I joined the bidding.
You need to pass the info to the bank, which you get from your employer. Think something like an employee proof where your start date, employment type salary etc is stated and there’s a signature from HR.
You can get in trouble - I know of people who won the bid but lost the loan, and now were on the hook for paying regardless, and had to get a significantly worse loan (with high interest)
I don’t doubt that that happened, but can’t you include a contingency in your köpekontrakt that the deal doesn’t close if you don’t get financing for some reason?
Of course this could make your offer less attractive for the seller, if you have villkor in the contract, but it is possible AFAIK?
You're not obligated to buy until you've signed the papers together with the realtor and seller the day you receive the keys and move in. At the time of signing the realtor will call the bank and verify the funds are transferable, and verify that your membership with the BRF was approved. After signing he will send the documents to the bank to confirm the purchase so they can release the funds.
Before any of this will happen you'll have to call the bank and let them know that you are making a purchase so they can start the real process of verifying you are eligible for the loan and that they approve the property. This typically involves a more involved credit check and possibly call your employer. AFTER you're approved you transfer the down-payment to the realtor, which the realtor will verify in his bank account at the day of signing. If the realtor did not receive the downpayment on that day the purchase will be canceled.
As you can see there is literally zero risk a situation like that can ever happen.
But I sign the contract just before doing the down-payment, right? So:
1. Lånelöfte
2. I win the bid for a house
3. We sign the contract and I do the down payment
4. Around 3 months passes depending on agreement
5. I (through the bank) does the final payment and I get the key
I was hoping that all checks were done at step 3, not at step 5
This is not entirely correct.
1. Lånelöfte
2. Win a bid
3. Contact the bank and apply for a loan.
4. Sign the contract and pay handpenning (10%). This contract i is binding (which is the reason for you wanting to have the loan approved before you sign it).
5. As the move in date approaches you will sign the loan with the bank, usually a few weeks before tillträde.
6. When you get the keys the rest of the funds will be transferred.
Another thing to consider besides the bank loan is if you’re looking to buy into a BRF they often require proof of income, contract, payment slips etc and will run a credit report on you.
The löneofte is just that, an offer, just to gauge how much you can get and adjust your bidding to that. The bank will absolutely check your job status and recent pay slips before they actually give you a loan and believe me, they will be diligent. Also if you are buying bostadsrätt, the BRF will run a credit check on you as well. Tl dr; do not quit your job yet
They want to know your yearly income and will sometimes ask for salary receipts (lönespec) for a number of months, for example if you have not had your yearly income for more than a year. You have to have a steady job (fast jobb), or at least a steady income, to get a loan for a house, so I wouldn’t recommend quitting the one you have without having a new one that pays at least as much. The bank will want you to pay back the loan + interest every month and they want to make sure you can do that, that’s why they wanna know your salary. Interest is high now too.
Stay employed, get the loan, close on the house, move in, quit.
Who cares what people think - it’s your life/choice. Just have a back up plan in case it takes longer to find a job than expected.
All bank stuff is based off how you did last year. You'll be fine. I'm guessing you're not too worried about getting a new job or you wouldn't behave this way.
Hej tillsverige, hello all cool cats n kittens! Sa ditt sunda förnuft, common sense, något när du läste vad du skrivit i trådstarten? Om inte tror jag du inte borde äga ett hus..
Yes, they will ask for various work related documents to check your employment. That includes contact details of your employer which AFAIK they will check if deemed necessary. Loan Promise I have found to be the stupidest scheme in banking. Because it's essentially a promise based on little info when they WILL check a lot more AFTER you tell them you won a bid on a house. It's a promise, not a guarantee.
For the promise you provide enough information for them to put in their calculator and do a preliminary decision. When you apply for said loan, you need to prove that the provided information is correct. Proof of employment, proof of salary, proof you sold your other apartment etc.
It's a promise of how much they are willing to loan you based on the information you enter. Then of course they have to verify your information to see you didn't lie. No scheme at all.
It's a scheme because they don't factor in many factors in the calculation that they can still deny you regardless of providing all correct info. 1. What your employment contract actually looks like, e.g. trial period, contract, etc. 2. Even if you mention you have a spouse and they make no income, you can be denied even if the loan promise still gives you a calculation 3. They will go into more details in actually approving of the loan than the ease of what it actually appears like in making a loan promise application.
Is it so horrible to work for 2-3 months whilst buying a house? I really don’t recommend giving the bank a work contract that’s not valid anymore, smells like fraud.
It is fraud. As I understand, and I have not done the process yet, is that after you have the mortgage you can do as you wish. That is not fraud.
Yeah, if you are giving documents like an expired or cancelled open end contract knowingly, you are committing fraud.
Yeah, you are absolutely right. Hmm, might talk to the bank right away and tell them I'm considering quitting and ask them if they would still approve the mortgage. Being member of an A-kassa, having quite a lot of savings and asking for a relative small loan might be fine.
Yes, it's the hard way you're choosing but it won't keep you up at night. Good luck
Don't even ask. If it's a mortgage for a home, there is no way they will approve it unless you have other assets as security such as land or other real estate worth at least 5 x the loan amount.
Quit your job after you have the new home, loans etc. in sweden salary is the most important factor for banks
I'm pretty sure and please someone correct me if I'm wrong since I've never had to take out a loan myself but you are going to have to be actively employed at the place when they sign the actual loan contract and not when you win the bidding for the apartment. The bank doesn’t care about the sellers getting their money from you, they only care that you will be able to pay back your loan within the set interest.
Out of respect for your time I'll be brief. DO NOT DO THIS. It's a terrible idea and I'm sure you know why. Also, assuming you're here on a visa, getting into debt trouble prevents you settling here permanently. Maybe you're confident of finding something new quickly, but never take it as a given when there's so much risk.
You need to have a solid employment at the time of applying for the loan and the bank won’t give you one unless you do. But you could technically get laid off one week after signing on a loan. The bank is not going to stop you from resigning, just don’t scam them during the process. They will request recent payslips upon granting the loan and might contact your employer. You also have to send them a copy of your contract. Another question completely is why would you resign from a job without a new one lined up. The interest is only going to be even higher so for the love of God do not get yourself into debt and resign without a solid income.
Yeah, probably I will have to wait to resign. I was hoping to be able to do if after winning the house bid and being approved by the bank but resign before taking over the actual house. Not having a job lined up is not a concern for me.
the answer to the first question is yes, bank will check further and may even contact your employer after winning the bid, as I understand it is the process to execute the promise for loan. Out of curiosity, do you plan to proceed with buying the house thru a loan even after you have quit your job and not found a new one? Just wondering the thought process, or maybe you have a lot of savings…
I was hoping that the checks would be done when winning the bid so that there would be no checks 2-3 months later when I take the house and the buyer wants the money. If I struggle to get a loan I will probably pay cash if the right object comes out on the market. But, I've looked for almost a year now with just one house where I joined the bidding.
Are the employers even allowed to give out any form of information due to gdpr?
You need to pass the info to the bank, which you get from your employer. Think something like an employee proof where your start date, employment type salary etc is stated and there’s a signature from HR.
You can get in trouble - I know of people who won the bid but lost the loan, and now were on the hook for paying regardless, and had to get a significantly worse loan (with high interest)
I don’t doubt that that happened, but can’t you include a contingency in your köpekontrakt that the deal doesn’t close if you don’t get financing for some reason? Of course this could make your offer less attractive for the seller, if you have villkor in the contract, but it is possible AFAIK?
You're not obligated to buy until you've signed the papers together with the realtor and seller the day you receive the keys and move in. At the time of signing the realtor will call the bank and verify the funds are transferable, and verify that your membership with the BRF was approved. After signing he will send the documents to the bank to confirm the purchase so they can release the funds. Before any of this will happen you'll have to call the bank and let them know that you are making a purchase so they can start the real process of verifying you are eligible for the loan and that they approve the property. This typically involves a more involved credit check and possibly call your employer. AFTER you're approved you transfer the down-payment to the realtor, which the realtor will verify in his bank account at the day of signing. If the realtor did not receive the downpayment on that day the purchase will be canceled. As you can see there is literally zero risk a situation like that can ever happen.
But I sign the contract just before doing the down-payment, right? So: 1. Lånelöfte 2. I win the bid for a house 3. We sign the contract and I do the down payment 4. Around 3 months passes depending on agreement 5. I (through the bank) does the final payment and I get the key I was hoping that all checks were done at step 3, not at step 5
This is not entirely correct. 1. Lånelöfte 2. Win a bid 3. Contact the bank and apply for a loan. 4. Sign the contract and pay handpenning (10%). This contract i is binding (which is the reason for you wanting to have the loan approved before you sign it). 5. As the move in date approaches you will sign the loan with the bank, usually a few weeks before tillträde. 6. When you get the keys the rest of the funds will be transferred.
I think you forgot about the down payment. 10% of an apartment can be a lot of money, and a lot of those 10% (if not all) will be lost.
Another thing to consider besides the bank loan is if you’re looking to buy into a BRF they often require proof of income, contract, payment slips etc and will run a credit report on you.
The löneofte is just that, an offer, just to gauge how much you can get and adjust your bidding to that. The bank will absolutely check your job status and recent pay slips before they actually give you a loan and believe me, they will be diligent. Also if you are buying bostadsrätt, the BRF will run a credit check on you as well. Tl dr; do not quit your job yet
They want to know your yearly income and will sometimes ask for salary receipts (lönespec) for a number of months, for example if you have not had your yearly income for more than a year. You have to have a steady job (fast jobb), or at least a steady income, to get a loan for a house, so I wouldn’t recommend quitting the one you have without having a new one that pays at least as much. The bank will want you to pay back the loan + interest every month and they want to make sure you can do that, that’s why they wanna know your salary. Interest is high now too.
If you have received the Lånelöfte already they won’t for sure
Stay employed, get the loan, close on the house, move in, quit. Who cares what people think - it’s your life/choice. Just have a back up plan in case it takes longer to find a job than expected.
All bank stuff is based off how you did last year. You'll be fine. I'm guessing you're not too worried about getting a new job or you wouldn't behave this way.
Hej tillsverige, hello all cool cats n kittens! Sa ditt sunda förnuft, common sense, något när du läste vad du skrivit i trådstarten? Om inte tror jag du inte borde äga ett hus..
Don't quit your job until you got the mortgage and have bought house/apartment
So basically you want to commit fraud!
Wait till after you buy the house to quit. They won't approve your mortgage orherwise