August 26, 2019

Creditworthiness and mortgage

Some people have trouble getting a mortgage and wonder why this is happening. The reason for refusing a loan may be that we are on the banks’ lists, as debtors who did not pay their debts on time, or some enforcement bailiffs are pending against us.

It may also be that we have credit cards and our creditworthiness is reduced by these amounts. If you want to get a mortgage, you will have to get rid of it all, i.e. give your credit cards.

What else?

What else?

We may not earn enough to get money to finance the purchase or construction of a property. If we earn too little, the loan amount may be much lower than the one we assumed. At the bank, we will receive one piece of advice, namely you will have to change your job. This is what it looks like every day in banks, to which a lot of people come. Some are happy because they get even a millionth mortgage, while others have problems and receive virtually nothing.

If we belong to the second group of people, unfortunately, but nothing can be done. Banks check creditworthiness very carefully today because they do not want to have problems later with a customer who has no money to pay back. We note that today, a down payment is required, and even ten years ago you could get a mortgage for 130% of its value. Today, collateral and insurance are the basis, so it will be harder to get a mortgage.

The problem is also what expenses we have. If we earn a lot, but it costs us a lot an apartment or a house, then getting a mortgage will also be difficult, so everything is very important here and everything is paid attention. If we go through several facilities, we’ll find out what it is all about and then we will know if there are any opportunities or not. It is good to visit several banks, because they often have a completely different approach to what our creditworthiness should look like.

Private company

Private company

You can recommend private companies for people who really need money but have problems getting it from the bank. You just have to be very careful here, because you can easily make a mistake, which you don’t want. There are a lot of companies, so you have to choose the most known and reliable ones, then we don’t take the risk, or at least it is much smaller. The most important thing for us is to get a mortgage, but you have to be really careful.

We read the contract carefully and know what to write back. We are often so fascinated and excited by this situation that we do not pay attention to what is happening. It can’t be that way, because it can cost us a lot, and we can’t afford it. It will be better to check everything very carefully and then we know who we are going to cooperate with and whether it pays off. If everything is OK, we will finally receive the money and we will be able to finance our property.

We calculate the loan ourselves

We calculate the loan ourselves

It is possible to calculate and count everything yourself. You don’t have to leave the house to do it. We use a mortgage calculator for this. You can use the calculator that is on the specific bank’s website. You can also choose a calculator that looks for and calculates offers from many banks. The latter solution is much better because you can find out faster what banks offer us and what we are able to receive.

If we see that on such a calculator one of the banks is able to give us the amount of mortgage we are interested in, we can do nothing but contact them. We will find out whether these data from the calculator are current, and if so, which formalities should be completed so that we could receive such a loan as soon as possible. The sooner we calculate these amounts and contact the selected bank, the better it will be for our situation. You have to hurry, because it will take a lot of time to complete all the formalities.

The internet gives us opportunities that save us time, and we don’t have much time. If the calculator comes out that we have no chance of getting a mortgage, unfortunately, but it will be very hard.

Of course, you can still try to arrange something and find out, but in most cases we only waste time. This is how it looks. If we do not finance the purchase or construction of our dream property without a loan, we have to strive to effect and maybe we can finally achieve our goal. 

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