It is not easy to get a loan for an apartment … The bank will check us carefully before deciding to borrow money. No wonder, after all, he must be sure that we will be able to pay the installments on time. And how can we prepare for a mortgage? What conditions must we meet for the bank to grant us a loan?
Mortgage – terms of receipt
A mortgage is a long-term commitment to a large amount, which is why the bank will only grant it to us if it is certain that we will be able to pay back the loan installments. To this end, our creditworthiness will be checked carefully , including the amount of monthly income . The decisive element in the granting of a mortgage by a bank is also the own contribution, which must amount to at least 20% of the value of the property on which we incur a liability. Another condition that must be met to get a mortgage is the borrower’s age.
Housing loan and the borrower’s age
A mortgage is usually taken by young people who need money to buy a new apartment or build a house. Such people also have the best chance of getting a loan that they will pay back over the next 30 years. Of course, provided they have adequate creditworthiness. However, there are no rigid rules that specify the age to which such commitments are granted. It is most commonly assumed that the sum of the borrower’s age and repayment period should not exceed 70 years. Otherwise, an additional life insurance is required from the borrower.
How much do you have to earn to get a mortgage?
It is worth remembering that high earnings will not always allow us to get a loan for an apartment, because the bank, when checking our creditworthiness, takes into account not only income, but also monthly expenses. It is also important whether the applicant has any other loans or credits and how many people he / she is dependent on.
And can you get a mortgage while working on a mandate contract? When granting us a loan, the bank must be sure that we will be able to pay it back. Therefore, when checking creditworthiness, an important element will be the type of contract the applicant is employed for. The dream situation will be having an employment contract for an indefinite period, however, this does not mean that, working on other terms, we have no chance to get a loan.
Own contribution in the mortgage
When applying for a home loan, we must already have some money set aside, which will serve as our own contribution. It should amount to at least 20% of the property value, while mortgage loans are currently granted for a maximum of 80%. It is also possible to get a loan with a lower contribution of 10%. In this case, however, we must take out additional insurance.