Future borrowers often have doubts about how much money to earn in order to be able to count on credit approval. In this article we will try to bring the financial requirements related to mortgage.
When thinking about your own apartment, you should often consider taking out a mortgage. Only a small number of Poles are able to buy real estate with the help of their savings. The popularity of this type of services and numerous debt related inquiries is therefore not surprising. The mortgage involves many formalities and thorough verification of the client by the bank. The creditworthiness of the potential recipient also plays an important role in obtaining the loan.
Therefore, among future borrowers there are often doubts about how much you have to earn in order to be able to count on credit approval. In this article we will try to bring the issue of mortgage to those who are employed on the basis of the lowest national salary. Can a person with such income count on consent for a loan? How is the creditworthiness calculated? What can you do to improve your ability?
Credit and minimum earnings
In 2019, the minimum wage was USD 2,250.00 gross. Therefore, the employee received USD 1634.00 on hand. Single mortgage, the minimum wage will be insufficient to get a loan to finance the purchase of an apartment. However, if the couple are applying for a loan, and each person has a salary, even a minimum one, the bank should not have contraindications before granting the debt.
It is worth remembering that a fixed income will be assessed by a financial institution much better than irregular or variable-value receipts. Therefore, people employed on the basis of an employment contract, especially for an indefinite period, can expect a better assessment in terms of their financial standing, which will have a real impact on obtaining credit approval faster.
As you can see, you can apply for a mortgage even if you earn the national minimum. Much depends on other conditions, including your savings, which will cover your own contribution, the amount of debt and the value of your property. However, do not make decisions without getting more information.
Calculate your creditworthiness
Do you want to check your creditworthiness? With our help you have the opportunity, in addition, without completing any documents or providing certificates. All you have to do is use our creditworthiness calculator on our website, and within a few minutes you will find out whether the bank will be interested in giving you the loan you need so much. The calculator itself is very universal and you can use it regardless of which loan you intend to apply for in the bank.
What information do you need to provide for the calculator result to be correct? Be sure to set the loan amount you will apply for, as well as the repayment period during which you want to repay your debt. In addition, it is necessary to determine a stable income and, equally important, monthly fees (rent, utilities, food, installments of other debts, fees related to education and transport as well as entertainment). This few information will allow you to quickly determine if you have a chance to repay the loan without any problems, along with all the costs associated with the debt.
How do you increase your chances of getting a mortgage?
If you want a more favorable image and want to have an impact on increasing your creditworthiness, you can take care of it accordingly. Many people think that creditworthiness is the result only of the borrower’s regular income, this is obviously important, but we always have a chance to increase our chances of commitment in a different way and be positive in the eyes of bank employees. What can you realistically do to actually increase your credit chances?
Other financial liabilities – if you are still repaying a loan or borrowing, it may be worth waiting until you repay the debt so that the expenditure associated with it does not reduce your creditworthiness.
Extending the repayment period – this move means that your monthly installments will be much lower, which of course significantly increases your creditworthiness. This is a simple solution, which, however, involves paying more interest, which should be remembered before you decide to do so.
Cancel your credit card and account limit – although it’s often convenient to access extra cash when you apply for a home loan, it’s worth giving up this form of financial support. Even if you do not use these financial products, they debit your account, which will be noted when determining your creditworthiness.
Credit history – if you do not have any credit history so far, it may be worth considering a small installment purchase so that you can prove that its repayment was timely, without any problems. However, persons whose report issued by BIK will show negative entries about overdue fees must be prepared for the fact that the bank will not be willing to grant them a loan, especially a mortgage.
What conditions are required by the bank before granting a mortgage?
The borrower who wants to take out a mortgage must reckon with the fact that this is an offer that stands out from the other services available in the bank in terms of the client’s requirements. All because of the high amount of debt, as well as the minimum interest rate on the loan. The institution must reduce its risk, which is associated with a longer process of applying for funds.
A bank customer, before receiving information about whether a bank decides to grant him a loan to buy an apartment or house, must:
Fill out the mortgage application form along with the attachments required by the specific bank
Provide documents that confirm the information about fixed earnings and their amount, which will determine the borrower’s creditworthiness
Have a favorable credit history
It is necessary to have own contribution (According to current law , own contribution should be 20% of the value of the property. However, banks have offers that allow reducing the contribution to 10% of the value of the apartment or house , however, requiring the use of a low own contribution insurance.)
The borrower will be required to establish a mortgage for the bank, which will be the collateral for the loan. In addition, property insurance and a life insurance policy are required.
Complete the electronic loan application
The mortgage is not an online loan, but you can quickly contact the bank by sending an electronic application, which you will find on our website. This is an instant way to be able to talk directly to a bank consultant without having to sign a contract. By completing the online application, you will gain time and very quickly get all the necessary information about the debt that you want to use.