Credit system in the United States

In the US, the process of obtaining a mortgage is mainly based on building and maintaining a good credit history. Here are the essential elements of this process:

Building a credit history

  • Credit Cards : Regular and timely repayment of bills helps build a positive credit history.
  • Consumer Credit : Taking out and repaying consumer loans also affects your credit history.
  • FICO score : The most important indicator is the FICO credit score, which is calculated on the basis of various factors such as timeliness of repayments, length of credit history, debt and new credit.

Creditworthiness assessment

  • Income : Banks look at income and stability of employment.

Own contribution

  • The minimum own contribution can be as low as 3%, but 20% is often required to avoid mortgage insurance (PMI).

Credit system in Poland

In Poland, the process of obtaining a mortgage differs from that in the US. A key element of the creditworthiness assessment is the applicant’s income. Here are the main aspects:

Creditworthiness assessment

  • Income : Banks require proof of income such as employment contracts, bank statements, PITs.
  • Stability of Employment : Preference is given to those with permanent employment contracts, however any documented form of employment is also acceptable.
  • Other Commitments : The applicant’s other credit commitments are also analysed.

Credit history

  • In Poland, credit history (BIK report) is important, but not as crucial as in the USA. Banks check whether the applicant is in arrears with other repayments.

Own contribution

  • An equity contribution of 10-20% of the value of the property is usually required.

If you are an Expat from the US, you need to understand the key differences between the lending systems in the US and Poland. In the US, building and maintaining a good credit history plays a key role, while in Poland, demonstrating creditworthiness based on income is most important.

For those planning to buy a property in Poland, it is crucial to have a stable income and to prepare the relevant documents. Both systems have their peculiarities, which are worth understanding before deciding on a mortgage. Understanding these differences will help you better prepare and increase your chances of getting a loan in Poland.