The Importance of Credit History When Applying for a Mortgage

Among the different factors that, when apply for a mortgage, will promote the success or failure of the process, the credit history occupies an important place. The bank wants guarantees, and this report can give them them. Discover what credit history is, how to improve it and to what extent it affects your image with the bank.

What does credit history consist of?

He credit history It is a report on how you have handled previous payments. It contains the number and amount of your outstanding debts, the time it took you to settle accounts and, ultimately, the facilities or difficulties you have had as a payer.

How can you get your credit history?

You should request your credit history from Bank of Spainand to do this you have up to three ways:

• Onlinethrough the Virtual Office of the Bank of Spain. You must have a digital signature or electronic certificate.
• In personby appointment, at the headquarters in your city.
• By postal mailsending a form to the address of the Risk Information Center of the Bank of Spain (C/Alcalá, 48, 28014 Madrid).

To what extent does credit history determine the granting of a mortgage?

already knowing what is non-credit historyit is not difficult to imagine its impact when requesting a mortgage loan.

When the bank evaluates a client it only looks for one thing: guarantee. And it is not that he is only interested in having them, but it is his obligation. The bank could well grant mortgages left and right and, in the event of non-payment problems, foreclose them. But their duty is not to grant mortgages to those who cannot pay them.

The ideal, of course, is for the client himself to thoroughly study his situation and see if it is time to apply for a mortgage. If the client blindly asks for it and the bank grants it at all costs, the real loser will be the client, not the bank. You can use our mortgage simulator plus expenses and receive, free of charge, an indicative feasibility analysis by the experts at Housfy Hipotecas.

What to do if your credit report is unfavorable?

A negative credit history will tarnish your image with the bank, but it is not the end of the world. Logically, the best thing you can do about this is try to fix it paying off your previous debts. Our mortgage brokers They will never tire of emphasizing how bad an idea it is to embark on a mortgage if there are still debts to pay off.

Perhaps, even though you currently have no debt, your credit history shows past defaults. Explain to the bank, calmly and clearly, what your situation was at that time, and show them that there are no signs of it happening again. To do this, give some of your preferred guarantees:

• A good amount of savings.
• High income.
• Very solid job stability.
• Provision of a guarantee.

They won’t grant me the mortgage I need: what options do I have?

After visiting multiple banks and compare different mortgages Are you still not getting the one you need? At Housfy Mortgages we can help you.

Our agents deal directly with the main banks and open doors that you had previously found closed. They manage all the necessary documentation, and offer you different options so that you can choose the most favorable one yourself. Take the first step towards your new home today.