The study of a loan
Uncertainly about being granted a mortgage loan troubles many buyers. But... Do they know what are the factors that influence the decision of the bank?
What should we stress in order to convince the bank that we are solvent? What figures must they have to approve the operation? here We will give some answers.
The valuation figure
This is the first figure the bank considers in order to grant the mortgage loan. For this the institution itself sends a valuer to the property to give a price, although this normally does not coincide with the market price. As many will know, loans do not cover 100 percent of the valuation amount. In general, they reach 80 or even 85 percent of the total, although in recent years banks have been much more lenient, since the property is the final guarantee of payment.
Debt capacity
Is a calculation performed by banking institutions to evaluate our capacity to return the amount of the loan. Normally, the premise is that the loan instalment should not exceed 35 percent of the net monthly income of the buyer. The amount of the loan and the term for its repayment depend on this.
Guarantees?
Normally, a mortgage loan does not require more guarantees than the property itself. If the buyer does not pay, the bank will take possession of the flat. Even so, in certain cases, some institutions do require a guarantee. The buyer in this case must be aware that: there are sufficient offers on the market and there are more institutions available to them without the need to present guarantors.
Employment stability
This is not a determinant factor, but in many cases it has an influence. Sometimes the institution requests a copy of the employment contract to know if it is permanent or temporary. It is one more way of ensuring the future .
Subterfuge at the notary
The valuation amount does not coincide in many cases with the real value. In fact they almost never coincide. In this regard, subterfuge is the norm in the notary’s office, where operations abound in which the value registered in the deed is less than the real value. The possibility of paying less tax and the desire to launder unaccounted money are two of the principal causes.