Although more and more Poles buy real estate for cash, for many people this option remains unavailable. In order to become owners of an apartment, they must apply for a mortgage. What can you do to increase the likelihood of getting a loan? So you can สมัครสินเชื่อส่วนบุคคลออนไลน์ .
What makes creditworthiness?
First, check your creditworthiness to know if we can get a loan in the current situation, and if so, how much. Because banks differ in the methods of assessing creditworthiness, it is worth asking a few banks and advisers to calculate it.
One of the important elements of this assessment are the criteria set out in the so-called S recommendations, i.e. rules regarding good practices in the area of mortgage-secured exposures. Among other things, it introduced a significant limitation of the amount of credit available to the applicant. For several years, you cannot take out mortgage loans above the value of the property that you want to secure them. Own contribution is required, which initially amounted to 5% of the value of the property, and in subsequent years it was gradually increased, to reach the target level of 20%. The own contribution is treated as proof that the person applying for the loan is solvent. However, some banks allow their own contribution of 10% under the condition of additional protection of the missing part.
Another limitation concerns the currency in which you can get a loan. At present, no mortgage loans are granted in a different currency than the one in which the borrower collects income. This recommendation was introduced as a result of the conclusions of the global financial crisis and poor experience with loans in foreign currencies. As a result of a significant change in the Swiss franc rate, the balance of these loans increased significantly, so these people were often unable to pay them back.
Recommendations also set limits on the loan period. As a rule, it should not be longer than 25 years, and the possible extension cannot exceed 35 years. It is important to note when the borrower reaches retirement age. In practice, this means that a person over the age of 40 may have a problem obtaining a loan for 35 years.
Banks that grant loans often use Credit Information Bureau reports. Such reports contain information about our credit history, type of liabilities and timeliness of their repayment along with the score. Such a report can be checked on the website for a small fee.
However, the high score does not automatically mean that we will get a loan. Different banks pay attention to various elements of the report and adopt their own criteria for its evaluation. However, such a report may be valuable information, which in our credit history may raise doubts and what can be improved.
In addition to credit history, banks also take into account our current life and financial situation. The source of income and the form of employment is of considerable importance. An employment contract for an indefinite period is best viewed. A fixed-term contract is associated with a certain risk that employment will not be continued. In such cases, the bank may require a promise of employment, i.e. an employer’s commitment that the employee will continue to be employed after the end of the current contract.