For each bank, the most important factor determining the granting of a mortgage to a customer is, of course, creditworthiness. All banks must be sure that the customer can easily repay their liabilities.
A mortgage is a financial product that draws a lot of people. Potential borrowers very often wonder how much you have to earn to get a mortgage. Nowadays, banks verify their clients very carefully before issuing a loan decision. The conditions that must be met are becoming increasingly difficult to meet. Is a person living on the lowest national level likely to get a mortgage? We answer this and many other questions in this article. We invite you to read carefully!
Mortgage – definition
The mortgage is a product secured by a mortgage. A mortgage is a material means of securing claims on real estate. This means that if the consumer stops paying his obligations, the bank will have the right to take over this property from him.
The mortgage agreement contains a provision stating that the bank transfers funds to the client in the amount agreed by both parties, and the borrower is obliged to pay its liabilities in due installments. Mortgages are special purpose loans that can be spent on buying a flat or building a house. The maximum loan period for a mortgage can be up to 35 years.
What conditions must be met to be able to apply for a mortgage?
For each bank, the most important factor determining the granting of a mortgage to a customer is, of course, creditworthiness. All banks must be sure that the customer can easily repay their liabilities. It is worth knowing, however, that you do not have to be employed under an employment contract to get a mortgage. In many cases it may be enough to have a mandate contract or a specific task contract. For this to happen, however, we must have a sufficiently long seniority of at least 12-24 months and an appropriate amount of earnings. After meeting these two conditions, our chances of getting a mortgage will be very high.
Creditworthiness – what is that?
Creditworthiness is a factor that is extremely important for any bank lending to its clients. When assessing creditworthiness, institutions take into account:
monthly earnings of the applicant,
type of employment contract,
applicant’s credit history. The potential borrower should not have any overdue payments recorded in one of the debtors’ databases. Individuals whose details appear in the debtor’s registers may have considerable problems applying for a mortgage;
the cost of maintaining the household operated by the applicant – the borrower’s living costs are scrupulously verified by the bank. Banks most often decide to grant loans to couples without children. Single people have the biggest problems applying for a mortgage. Marriages that earn well can cope with paying their debts even if one of them loses their job or falls ill.
How to increase your credit standing? There are many ways. The most important of them include changing or finding an additional job, paying off your previous financial obligations and canceling your credit card. It is also worth making sure that our data does not appear in one of the existing databases of debtors.