Ways to increase your chances of getting on the property ladder
Today, young people have fewer and fewer opportunities for a first home. The possibilities of obtaining a mortgage in our country are not many. However, if we follow a series of recommendations, we may be able to increase those possibilities in the short term.
Not having debts
If we don’t have any debt, we have a better chance of getting a mortgage. That’s why, if we have applied for a car payment loan or have any outstanding credit, it’s more than advisable to finish paying them before asking for a mortgage in a bank.
Most people tend to save 10% of the total amount of their home before applying for a mortgage. However, these days it may be necessary to save a little more. The more savings we have, the less money the bank will have to give us, and therefore the less risk it will be. If we have saved 30% of the total amount of the property we will have a good chance of getting the mortgage.
The credit rating
The credit score helps the bank find out if your prospective client will be able to afford the mortgage payments. To enjoy a good credit rating you must avoid having outstanding payment orders, have a balanced income and debt, have a stable income, be a good payer and be able to have collateral.
Finally, the employment situation of the future owner is key to applying for a mortgage. Banks prefer a typical self-employed profile, as long as you have seniority and make a solvent tax return. Civil servants and permanent contracts of more than a year and a half are the ones who have it best when applying for a mortgage. Those with a temporary contract and the unemployed will have it more complicated.