If you are preparing to buy your home, it is natural that you have a question: Do I qualify for a mortgage purchase? To know if you qualify or not, you must go through a credit evaluation where some aspects will be reviewed.
What aspects are evaluated to access a mortgage loan?
There are two key aspects that banks evaluate to grant a mortgage loan:
- The availability of money: It is one of the key elements in the evaluation because this ensures that you can pay the fees and for this you will check the amount of your income for the month. They will also verify that you have at least 10% down payment.
- The credit history: The bank will check how your behavior was at the time of paying your debts, verifying that you have not had arrears.
Do I qualify for a low-wage mortgage purchase?
The positive rating for a mortgage debt in terms of salary depends on two issues:
- The percentage that covers the fees to be paid: The amount of the salary to qualify is relative, since everything will depend not on the absolute amount but on how much percentage it covers on the fees to be paid, and this is according to the value of the property.
- The origin and constancy of the funds: The bank will be interested in both the amount of salary accrued and the stability and legality of the income.
Hence, to know if what you earn is enough to access the loan, you must take into account the value of the property or else the bank will remind you.
For example, you may have a high salary, but even so, the credit installments you aspire to almost reach half of your income. It is essential that the fees be less than 35% of your total income.
In short, to know if I qualify for a mortgage debt purchase, I must focus on the types of income I have and the credit history. And do not worry if you are one of those who receive income from the fourth category, that is, they pay you for fees, because for this credit institutions have arranged savings plans.
Banks and mortgages
Banks have been given more mortgages under management in recent years. One way for banks to provide more credit is the possibility of securitising mortgages they have provided. This means that banks temporarily sell their mortgages to other financial intermediaries. This way the outstanding mortgages disappear from banks’ balance sheets and they can issue more loans.