Getting mortgage financing to purchase a property has always been dependent on a number of requirements being fulfilled. This year, after the health crisis and worsening of the economic situation caused by the pandemic, banks are assuming much more risk when granting a mortgage, so it is important to know if you meet the right conditions to get a mortgage loan.
At Lasose Properties & Investments we explain what requirements are necessary in order to obtain a mortgage.
Job stability
At this time with the current economic crisis, it is more important than ever to have good job stability. Banks and mortgage suppliers are betting on clients who have a permanent contract and who work in sectors that are less affected by the pandemic, preferably the civil service sector – all of this so that certain reliability can be demonstrated in order to pay the installments.
No debt
It is essential not to appear on any list of defaulters or have other outstanding debts. In order to be able to get a mortgage, all expenses and debts in the buyer’s name may not exceed 35% of the monthly net income.
Previous savings
Propert buyers need to have certain previous savings to cover purchase and sale expenses, among which taxes must be included, which means between 10% and 12% of the total value of the property. In addition 20% more on top of this is needed, since the bank will usually only finance 80% of the purchase of a house. There is however the possibility of obtaining a 90% or 100% mortgage, depending on several factors such as having a good solvency profile, in the case of acquiring a property that belongs to the bank, or when the transaction is made through a financial intermediary.
If all these requirements are not able to be met, there is always the possibility that we can provide extra guarantees, such as, for example, guarantors that can act as a third person or other properties that are free of encumbrances.
