The housing market is booming despite high property prices. But interest rates on loans are very low, and home buyers are even more inclined to buy their own home. Getting a home loan is not that easy, there are quite a few banking requirements that must be met.
It is also important how much the purchase price of the property is, whether you can get the amount of credit that you can buy. The amount of mortgage you can get and the amount of real estate coverage you can get will be greatly influenced by the amount of real estate coverage and the amount of justifiable income. If you pay attention to these, your home loan will be successful!
If you pay attention to these, your home loan will be successful!
The value of the property is always determined by the bank valuer. There are many factors that influence how much real estate value a valuer will determine. Credit institutions lend up to 80% of the market value of the property, ie a minimum of 20% own funds is required for the purchase.
The fact is that banks generally take this more strictly and may ask for 25-30% of their own funds. So, if you want to buy a real estate for $ 25 million, you need at least $ 5 million of own resources and you need to get a $ 20 million home loan from the bank.
We are talking about a lot of money, so collecting 5 million forints is not easy. Thinking about your home purchase plans in advance can help save a home, as banks will count it as self-sufficiency and can save your savings on a home loan for free.
The bank carefully examines the income. Only verifiable income is accepted by the credit institution. It is in vain for you to earn multiple of your verifiable income if you cannot prove it with an official document. According to the regulations, up to 50% of the income can be debited with a loan repayment of less than 400 thousand HUF, and above 60%. Banks take this more rigorously, leaving the installment of 35% to 40% of the income-related installment. From 2019, this could change.
It can be dangerous to utilize your earnings to the maximum load because you do not know what the future will bring. You may become incapacitated or have a loss of income and may not be able to repay your loan according to the contract. In such cases, loan coverage insurance or interruption of the installment can help. As interest rates on loans are very low at present, they may even rise, resulting in an increase in the installment. However, it is not worth taking the risk, thinking ahead and taking on a smaller down payment.
In addition to income, the bank checks whether you have an existing loan. If you have small loans, maybe a credit card, and don’t use them, you may want to settle them before you take out a home loan to increase the amount of credit you can get. Existing loans also influence the amount of new borrowing. Lest you get a home loan for a loan that you could have settled on for a long time.