When deciding on a mortgage, we should be aware of what factors are taken into account by the bank when considering our application.
In order for the decision to be positive, we must meet a number of requirements, such as a positive BIK history, creditworthiness, good financial standing and no other obligations.
In fact, they don’t have to be so restrictive
Any bank that plans to grant a loan to its client must first check it for solvency. A lot can be said about this at the Credit Information Bureau. If a customer has had many obligations in the past, such as installments, loans, and loans, and repays them regularly, his credit history is positive. For the bank, it is information that a person has no problems with paying off loans and will probably also pay off this mortgage. The chance of getting it is then very high.
If the customer previously had any obligations, but they were not always regularly repaid or, worse, they were subject to recovery, obtaining a loan can be very difficult or the customer will immediately meet with a negative response. It is not a person who can be trusted to pay back a mortgage, regardless of the details or circumstances of these facts.
There is a third situation in which the borrower has no history in BIK, because he has never taken any credit or loan before or took any installments. The bank is unable to determine if the person is reliable or not, so for certainty he does not risk and usually does not grant him a mortgage. When planning to take such a loan, it is worth taking care of a positive history in BIK much earlier and in the case of negative entries, pay off everything and wait until they expire.
Mortgage and borrower’s situation
A client who submits an application for a mortgage in a bank must show documents showing his good personal condition. The source of income and the amount of earnings are very important. If the money comes from permanent employment in one company under an employment contract and in addition they are amounts in a row at least the national average, the customer has a chance to get a mortgage. If, on the other hand, his financial situation is uncertain and his earnings are irregular, the bank may refuse the client credit.
The borrower’s age is also taken into account. He may not be too young, without professional experience, with unreliable earnings, or too old, at an age in which a loan for 30 years may actually not be repaid, because its holder will not live to that time.
The bank would also like to know if and how many children the borrower has, because it involves large expenses and for each family member must be the appropriate amount of money for which they will live. And finally other obligations, which are discussed below.
Mortgage and other installments
Sometimes it is so that the customer has earlier decided to take something in installments. Maybe he wanted to improve his credit standing or maybe he just didn’t have enough cash to pay in advance. When he goes to the bank to apply for a mortgage, all his previous liabilities are taken into account. If their repayment is still ongoing, they reduce your creditworthiness.
Why? It is true that the borrower has high earnings, however, each additional installment reduces them by a given amount. The more installments, the less money remains after deducting them from income. So it’s not enough to earn a lot. It is also necessary to ensure that other obligations are as small as possible and do not disqualify the customer.
You should also watch out for credit cards. Even unused ones can reduce creditworthiness based on the card’s limit. It is best to close all cards and pay off your obligations or, if possible, combine them into one loan and pay one installment before taking a mortgage.