Borrowing to buy your dream home
With today’s real estate prices, most people are borrowing to buy your dream home. Whether someone is creditworthy depends on a lot. When you take out a home loan, it is important to check the bank account with the lending bank. The bank will carefully look at your bank statement, which may include an item that may cause you to decline your credit request. Here’s what they are.
Statutory creditworthiness criteria determine the maximum length of time that credit institutions can go. Banks do not act on the same criteria, as it is their responsibility to risk, to whom and to what extent they lend. Banks have a responsibility towards their owners and depositors, which is why their terms are so strict.
The amount of a home loan can be up to 80% of the market value, but most lenders tend to limit it to 70%. So the rest of the purchase price (20-30%) has to be financed by own resources.
Many people would not even think, before taking a home loan, that after checking their bank statement they might not be in credit because there is an item that prevents them from borrowing. In their risk analysis, credit institutions will look at all of the information that can lead them to conclude that the borrower will be able to repay the loan installment in the long term.
Unwanted item for your bank
An unwanted item for your bank may be, for example, regular gambling or other gambling-related expenses on your bank statement. Seeing this, the bank may reasonably believe that the claimant’s financial situation is not predictable. It is also a disadvantage from the point of view of credit assessment to regularly refer to a bank loan payer of a private loan. Considering these, the bank may decide to grant less credit to the claimant. The exact extent to which such items make it difficult to obtain a loan may vary from bank to bank. It also matters how much of such expenditure they make up in net income.
In order to avoid material damage, it is important that you do not make a mistake when buying a home on credit, and follow the correct sequence of steps. Before you put down a deposit on a property, check if you can get a loan based on your verifiable income, and if so, how much. The Philip Carey home loan calculator is a great way to compare home loans if you don’t have time to go through the banks. In addition to getting a realistic overview of home loan offers, you can save a lot of time by going to the bank of your choice. Using the calculator is very quick, easy and does not involve any obligation. You need to enter the requested information, and then the calculator will list the credit institutions that you may have a chance to borrow. After that, all you have to do is choose the one you like the most.
It can also be very helpful, a preliminary credit assessment when the bank examines your verifiable income and then bid on the loan amount and interest. You can then choose the right property, and if it meets the requirements of the collateral, you have a good chance of getting a home loan.
It is worth asking for the help of a credit expert
It is worth asking for the help of a credit expert because he/she knows banking practice and realities. After looking at your income and living situation, you will find the best deals on the bank. Banks have very different business policies, so it may be that one claimant and one other claim the best deal. There are also huge differences between conditions. For a home loan, there may be a difference of up to $ 10,000 in offers, which means a full repayment of millions of forints.