If you need a mortgage loan, you will go to a bank or credit organization. But how does the bank assess your loan application? What are the important elements in your scoring?
THE CREDIT INSTITUTION AND YOUR HOME LOAN
To take out a mortgage loan, you will contact a credit organization or a loan broker. Before submitting a concrete proposal to you, the credit organization will assess your request. But what are the elements it will take into account?
Before taking out a mortgage, think carefully about the following two questions:
How much are you ready to repay for your home loan?
How much are you able to repay each month?
If the answers to these two questions are clear, you can proceed to the next step. You will then receive a proposal from a credit organization. But before establishing this proposal, he will carefully study your request, paying particular attention to several points.
DO YOU HAVE A STABLE JOB?
The credit agency will check how long you have worked for your current employer. This will give him an idea of the stability of your job. A person who has already worked for a long time with their current employer will inspire more confidence.
HOW MUCH DO YOU EARN?
This question will help the credit agency assess your repayment capacity. Will you really have the means to repay your home loan? How much of your income will be devoted to repaying your home loan? How much will you have each month to live on and pay other expenses?
DO YOU HAVE OWN FUNDS?
If you are buying a house, the credit agency will also look to see if you will pay part of the purchase with your own savings. If this is the case, he will be more inclined to grant you a mortgage loan more quickly. This could also lead to a more interesting rate for your loan: the more equity you inject into the purchase of your home, the lower the rate will be.
DO YOU HAVE OTHER LOANS OR LOANS TO REPAY?
Do you still have other loans or loans when you apply for a mortgage loan? What are these loans used for? This will give the credit agency an idea of what is important to you. This will also influence the maximum amount you can borrow: the more credits you have in progress, the less you can borrow.
DO YOU REGULARLY REPAY YOUR OTHER LOANS AND LOANS?
If you have other loans or loans outstanding, a lender will always check that you are paying them back correctly.