Do you want your home loan to be approved? Follow these 5 tips
Finding a home to buy can be intense, tiring and frustrating. One can find himself looking for his dream home without end, but only finding places he doesn’t like or is too expensive. Finally … it happened! He found the “house”. Economical, comfortable, spacious and with good accessibility. But first … he must have an approved housing loan.
He then went to the bank and asked for a mortgage loan to get a loan to finance a new phase of his life. However, a cold water bath might come: the credit is not approved. Why? Has he missed payments on previous credit? Is he in a phase of stability that is less professional? If you are in the same situation, follow our advice and the possibility of seeing rejected credit becomes much smaller.
1) Everything goes through a good credit history
It is certain and well-known that banks like to get back loans. Thus, it makes sense if they provide loans faster to people with a good payment history. Therefore, if you have missed payments on a previous loan, it is only natural that the institution has doubts whether this time they will be able to face new credit.
Also, be aware of your level of effort. This shows your ability to contract (and fulfill) new credit. The bank will keep an eye on it, making it easier to see approved housing loans.
2) Try to keep your bank account always in “green”
This is another indication that the bank can choose to measure someone whether he is a good payer or not. If you have a balance in your bank account several times in a negative, this can indicate that you are a changeable customer and that you can issue debt beyond your ability. As we have seen, this can lead to mistrust in the institution, whether someone will be able to repay the loan installments within the agreed deadline.
3) Professional stability is very important
Sometimes it’s not your fault. There are always salary deductions and, at worst, redundancies occur. However, it is a fact that banks give preference to those who have a stable professional situation. In this way, the bank seeks to reduce the risk of lending to someone who might not be able to pay benefits that are due from one day to the next.
That way, you will be more likely to get credit if you have a permanent contract, work in a large company that is financially healthy or has seniority in it.
4) If you can give a good initial entry to the property
A good initial entry for housing payments to be obtained can positively influence the Loan-to-Value (LTV) ratio. What does this ratio mean? The LTV ratio, say, 80% shows that your loan is equal to 80% of the total property value.
In this case the bank has a safety margin, because in the case of default the bank will have more valuable property with respect to the amount borrowed. In this way, the bank minimizes the possibility of possible losses.
5) Maybe it’s better to ask for credit only after 25 years
To get a loan, age is calculated. First, it is natural for people in their early twenties to receive a smaller salary that does not allow them to make loan payments.
In addition, this is a phase where professional stability is lacking, because young people are still at first job. Finally, there are questions about no credit history. The bank bowed when providing financing to customers they did not know.
Following these suggestions, it’s likely that you see an approved home loan high enough. However, don’t forget that banks also compete with each other. Therefore, it is always important to compare to see what is the best offer currently on the market. It’s also important to look at other options. In this context, we can recommend no home loan deposits. Interested? You can read more here!
