Obtaining a mortgage is not an easy task. The banks are often strict in the conditions for granting a loan. To get a mortgage, you have to come out in the best light. Here are some tips that will put the chance on your side.
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An unstable financial situation is reason enough for your bank to refuse your loan application. So the first thing to do is to stabilize it. If you are unemployed, a job is required because the bank will take into account your monthly income to calculate your monthly payments as well as your professional seniority.
If you are too indebted, be sure to solve all loans, overdrafts and consumer credits to improve your debt ratio. In addition, saving from time to time in your bank account will be an advantage for you. Although you would be required to monthly repay your loan, the ability to put money aside counts tremendously to reassure your banker.
The banks also take into account your personal contributions in the purchase of real estate. Generally, they require a personal contribution of 10%. A contribution of 20 to 30% is preferable to benefit from an interesting credit rate.
However, banks are tolerant in some cases where the borrower cannot make a contribution. This is the case for a professional beginner provided that his monthly income is stable to repay the credit.
Proposing a borrowing period of fewer than two years is viewed favorably by the bank. The reason is that a longer term of borrowing increases the risk that the bank takes while less than two years will reassure it. In return, you are more likely to benefit from an interest rate reduction.
Once you have made your profile better, do not forget to send all the documents it requires to the bank. Note that an incomplete file may disadvantage you and influence the decision of the bank. Here are the documents you need to apply for a mortgage.:
- an ID
- Last three bank statements
- Last three pay slips
- Two latest tax notices
- proof of address
As soon as all the files are in agreement with the request, the credit contract will be committed. The bank will send you a letter recalling all the statements of the credit, namely the total amount borrowed, the maturity date, the repayment period, the total effective rate, the guarantees, etc. Read word by word and number by number, because once accepted, there is no more cancellation possible.
The credit will be released only after the contract of sale of the real estate has been signed. It is a document signed and registered by a notary. It will be sent to the bank and the bank will release the money. With a mortgage, you now have the key to your home in your hands.
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