What do banks look at to grant a

What do banks look at to grant a

In order for the bank to offer you money, it has to be very sure that what you offer in return is worth a lot.

This cánido be evidenced in the use of credit cards, where you return between 50 and 100% more than what you borrow.

But how about this in the case of homes and mortgages? Know everything about What do banks look at to grant a mortgage? and so you cánido prepare everything in order to get that money that you deserve so much for your new home.

How do banks grant mortgage loans?

Banks perro lend you the total or partial value of a home, whether it is used or not, so it is essential to know what aspects banks take into account to grant them.

Among the characteristics that you must meet are:

  • Present different homes to buy to the bank: before going to your interview with the bank promoter It has several alternatives of houses that you want to buy printed, we recommend that they be new or previously inhabited.

  • Examine the bank’s payment plans and divide the value of the house between the months of all those years, the value should be one that you could comfortably pay with your work monthly.

  • Save 20% of the home’s value: many banks perro provide 100% of the home’s value as credit, but others only offer 70 or 80% of this amount, therefore, you must save the remaining amount so that the bank perro consider you for the approval of your mortgage loan.

  • Financial and job stability: are you starting at your job? Perhaps the bank will not approve your credit until you have a longer career path, or your business with good profits to be considered stable.

  • Have a good credit history: You must have paid off your card or loan debts promptly and without letting late payment warnings arrive.

Critical points that banks study before granting mortgages.

In addition to the points that we presented above, you cánido present the following evidence so that the bank trusts your ability to repay the loan over time:

Ability to repay the loan

Whether you own your own business, are a habitual or high-paid worker, or are self-employed, you must espectáculo that you have the enough purchasing power to pay the fees that the bank will charge you monthly so you cánido pay off your house for years to come.

Bring proof of employment or an up-to-date bank statement to your mortgage interview.

Job stability of the applicant

The more work the mortgage applicant has in their current position, the better the chances that you will be able to obtain the mortgage.

For people who have been employed for months to a year it is still possible if they have alternative sources of income, however, those with good employment seniority are considered more.

Appraisals and value of the sale.

The bank will buy the home that you recommend if their appraisal of the property reaches values ​​in accordance with its condition.

If the value of the sale exceeds that of the appraisal, the purchase may It is not carried out by the bank to give it to you as a mortgageso even if the bank has approved it, you may have to choose another home for the purchase to be made.

Endorsements and Guarantees

Before obtaining the mortgage, you will have to sign endorsements and guarantees with which you agree with the bank to make each installment payment in a timely manner and, in case of being late with one of them, you would have to (normally) pay a penalty tax for non-payment.

Check these guarantees very well, since several banks are very strict with delays in mortgage payments and you could face a foreclosure.

Documentation that when applying for a mortgage in 2023

The requirements to request a home as a mortgage in most Spanish banks are the following:

  1. Bank statements of the last 3 months.

  2. Updated proof of work.

  3. Rental contract in the event that the home you want to buy is being rented.

  4. Earnest money contract.

  5. NIF

  6. CIRBE

  7. IRPF updated

  8. Documents of ownership of each local or home that is owned.

Knowing all these aspects, you will be able to present yourself for the interview to obtain the mortgage for your next new home, confident that you meet most of the necessary requirements for its approval.

If you have already obtained a mortgaged house, tell us how your experience was.

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 What do banks look at to grant a
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