Mortgages are related to your own contribution to buy your dream property. As a rule, the minimum amount of the contribution is 20 percent of the value of the house or apartment. However, there are banks that offer the customer to pay a smaller amount, which is 10 percent of the price of the premises. Although in this case the choice of banks will certainly be much smaller. Another issue that we have to take into account is the additional costs associated with taking out the loan, because our own contribution is additionally secured by the bank. As you can easily guess, the lender offers much better conditions to those who spend the greater part of the amount needed to buy the property out of their own pocket. A larger own contribution is primarily a lower credit margin, and thus a lower cost of borrowed money. Mortgages and, in principle, their amount depend primarily on the value of the property that we plan to purchase and our creditworthiness. The value of the collateral and the loan amount should not exceed 90 percent, although there are lenders who may adopt stricter rules.
Very important creditworthiness
Creditworthiness is a kind of indicator of our current financial standing. Banks, according to internally established rules, decide themselves what credit to grant us and what amount of debt we will be able to handle as a customer. Speaking about creditworthiness, the bank will primarily take into account our place of residence, marital status, age, number of children as well as the financial situation of both our and potential co-borrowers, also known as residents. The bank is also required to check all charges arising from loans taken from other banks, loans, as well as the history of servicing the existing debt – whether it was repaid on time and whether the lender had no problems with us. Mortgages are burdened with relatively high fees, which is why at the stage of deciding which of those available on the market to choose, it is worthwhile to estimate your creditworthiness, if only roughly. A consultation with a bank advisor or credit intermediary may be a very good idea here. There we can ask about all the details that bother us, and by the way learn something about the additional costs associated with repayment of the borrowed amount and how much the maximum installment will be.
What bank is a custom
Each of the banks present on the market has a completely different approach to income from various sources. Those who run their own business, as well as those employed under a specific work contract or mandate contract, may receive a smaller amount than the one they applied for. However, each borrower can slightly improve his creditworthiness. First of all, they should get rid of the arrears arising from bank debt. If we manage to close them in time, then they will not be visible as active in BIK, which will definitely affect our benefit. If we become familiar with the bank’s offer, we can start looking for a suitable property. If our expectations are not too high, it may turn out that looking for the right one will take us a moment. There are, however, situations in which finding the most suitable takes a lot more time and can take up to several months. However, if we can find a suitable apartment or house, then it is worth analyzing your creditworthiness again. Every bank on the market offering mortgage loans sometimes changes the approach to calculating the financial capacity of a potential borrower. That is why our task is to make sure that nothing has changed in the bank’s decision and we can still count on its support.