Sometimes there is a decision to get a new home quickly and without much thought, but in many cases, you have to prepare for a mortgage loan in advance. You do not always have sufficient income, sometimes it happens that you repay an existing loan. At other times, the time is not right for a mortgage, because…
Because you have not yet decided whether you want to live in an apartment or house, you do not know whether you want to buy the house or build it yourself. There may be many reasons why you need some time to deal with housing.
In this article, we summarized the most common reasons why people still have to or want to wait with a mortgage. At the same time, we offer you 6 tips on what to prepare for before the mortgage.
Employment and income for mortgage repayment
Your work and current income – this is the basic condition for getting a mortgage. Keep in mind that if you want a mortgage, you cannot be with your current employer on probation or notice. If you do business, the business period must be at least one tax period and you must have a tax return.
At the same time, you cannot have business interrupted. Also, your only income cannot be parental leave or disability pension.
Good Finance also checks to see if your employer is reliable, whether you have late payments at the tax office, social security or health insurance. Ideally, you are employed in Slovakia or EU countries. The industry in which you work or do business, income development and stability in the future are also significant.
Your credit register may also have a big impact on your bank’s decision to apply for a mortgage. We all have problems from time to time, so you may have been late in repaying a consumer loan that you have been repaying or are currently repaying.
Although in each bank it is considered a little differently, the clear recommendation is to repay its liabilities on time. For example, if you had late installments 2-3 months ago, please wait for the request.
Some Good Finance requires a hassle-free credit register in the last 12 months, others will check it back in three years. You will be forgiven for one “fool”, but if there are more, either in a row or sporadically, your mortgage application may be rejected.
Low or no loans before applying for a mortgage
As of 1 July 2018, NBS regulations came into force, obliging banks to monitor the maximum credit burden on clients to avoid over-lending. This means that the maximum amount of your loans together can be 8 times (in some circumstances 9 times) your annual income.
If you have a credit card, authorized overdraft, lease, or consumer credit, these amounts are included in the maximum amount. Therefore, it is good if you want to apply for a higher amount of mortgage to get rid of current liabilities as soon as possible. They can be an obstacle to getting a mortgage in the amount you need.
Real mortgage amount
Occasionally, clients want to buy expensive real estate, but their income is not high enough to ensure that they can repay their mortgage smoothly all the time.
For example, young spouses have a current income of $ 2,500 and the bank can provide them with a mortgage of over $ 200,000.
However, if the wife stays home on parental leave, on the one hand, the cost of living this family will increase, the wife will have a lower income, but the mortgage payment will still be as high.
Therefore, it is necessary to look for a property at a price so that mortgage payments will not be burdensome for you even in the case of a temporary decline in income.
Save yourself “on your mortgage”
This recommendation has never been as timely as today when a 100% mortgage is almost over. Therefore, it is necessary to save in advance in order to have 10 to 20% of the purchase price of the property that you want to finance.
Good Finance no longer provides 100% mortgages today, so you will need at least 10% of the purchase price to buy a property.
Marital status of the mortgage applicant
Otherwise, clients resolve their housing if they are single and childless, otherwise spouses or divorced parents. Also, Good Finance looks at clients differently when approving a mortgage if they apply for the mortgage themselves or with their spouse or a partner.
Marital status often affects the creditworthiness of a client in a bank. Single clients are more risky for the bank than married/married, and divorced clients Good Finance consider differently.
Mortgage decision-making is often influenced by the future plans of young partners, for example. Whether they want to start a family or each of them wants to stay alone and so on.