When taking out a mortgage, know what the bank requires

Acquiring a home is the dream of many families, which aspire to have a wealth thanks to the purchase of a property; One way to do this is through a loan with a banking institution.

Due to the nature and implications of a mortgage loan, financial entities that offer this type of financing must ensure that applicants can pay them, for this, they take into account some essential requirements before granting a loan of this type.

Before applying for a mortgage, it is necessary to know the requirements that banks evaluate to determine if a client is a candidate to grant financing, for this they review the client’s background, in order to determine if he can pay the requested amount.

In this regard, Fernando Soto-Hay, general director of the mortgage broker Tu Hipoteca Fácil, pointed out that banks analyze two major items in each application for this type of loan: the income and payment behavior of users through their credit history .

Both components allow the financial institution to analyze whether the applicant has the capacity and discipline to make a financial commitment as large as a mortgage.

Regarding income, the banks confirm that the applicant has a sufficient recurring income, which is verifiable and that it coincides with the tax regime with which he is registered with the Treasury, the above is due to the fact that these entities regularly lend between 30 and 40% of the applicants’ gross monthly income, hence the importance of the applicant having the necessary resources.

According to the expert, it does not matter if the income is fixed or by fee, the important thing is that there is a record of these and they can be credited through a payroll or savings account.

“What the bank is looking for is that the client has proof of income, that he has enough monthly income to cover all his needs and pay for this financing,” he explained.

For example, if the interested party seeks a loan of three million pesos for a term of 15 years, the applicant will have to pay 33,000 pesos per month, that means that he must prove income of at least 100,000 pesos.

While in the part of the payment behavior, Soto-Hay highlighted that the credit institutions check that the client has a credit history of two years or more, a punctual payment behavior on their lines of credit, not having withdrawals or arrears, as well as lines of credit consistent with your income and preferably that your debts or monthly financial commitments do not exceed 40% of the amount of your income.

According to the expert, the ideal is to have experience in credit management through other types of financing, such as managing a credit card, an automotive or a personal one, in this way you will send a message to the banking institution that you know use a loan responsibly.

“What people have to do as a healthy financial practice is to maintain constant income, as well as current and timely credits, and the most important thing is that the amount of credit that they are going to request coincides with the income that they can credit” , he claimed.

Take care of your history

If you are thinking of acquiring a mortgage loan in the future, the director pointed out that it is important to start taking care of your credit history from today to access a good mortgage and that banks offer you better financing conditions.

In that case, the manager insisted that it is best to review your credit history and find out what your rating is: if you have a clean record, keep it that way; but if not, work on improving it to get a better score.

“If you are thinking of buying a home, the first thing to check is the Credit Bureau and see how the payments are, because that will provide an indicator of whether or not it is subject to being accredited,” he said.

First the credit, then the house

According to the specialist, the first and recommended thing is to get the mortgage authorization and then start the search for the home, because the buyer already knows what capital they will have, then the buying process can be much more agile, friendly, because you already know for sure how much money you have.

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