Know Your Personal Situation Before Applying For A Mortgage Loan

Once you have acquired some information about the mortgage process, you need to get a clear idea of ​​your own personal financial situation. This is essential because, ultimately, it is what the bank or lender wants to know and where the weight of its decision to grant you the mortgage lies.

Monthly income. What the lender wants is to make sure that it will be able to recover the money loaned and for that it will link the amount to be lent to the level of income of the client. This ability to repay is essential and the mortgage payment should not represent more than 30% or 40% of the net monthly income.

Income stability. As ClearPath Lending specialist already said, the mortgage has a very long financial life and the repayment capacity must be ensured for as long as possible. A steady job and a high seniority in your job will give you more options.

Savings needed to apply for a mortgage. Gone are the days when banks financed 100% of the value of the apartment or even more. Today they do not usually exceed 80% of the appraisal, which requires having the remaining 20% ​​plus the corresponding expenses and taxes.

Trustworthy economic record. On the one hand, the lender may ask you not to have other important loans and financial obligations that reduce your ability to repay. In addition, if there is a record of frequent defaults, either in household supplies, delays in other loans requested from entities, or you are in the record of defaulters, things can get complicated.