Juan Camilo González, founder of MisFinanzasPersonales.co, in an interview with Metrocuadrado.com, explained everything you need to know to get your home loan approved.
What should I take into account before requesting a home loan?
Before requesting a home loan, it is very important to do financial planning that allows us to understand if the budget or the cash flow that we have today gives rise to the mortgage loan instalment, adding to it all the natural expenses that come with the new housing.
It is important to do detailed planning to ensure that the change that our budget is going to have does not leave us in a financially vulnerable situation. We must have an adequate credit life and good use of consumer debt so that we are not over-indebted when requesting a home loan.
Many times we request loans quickly to “take advantage” of government subsidies and we forget that there are always going to be subsidies, because construction is a critical sector for the economy, and it is not the main indicator that it is the right time to take a mortgage. ; The good time to take this loan is when our finances allow it, not only to pay the initial fee, but also allow us to pay the loan without problem, without sacrificing our financial sustainability, that is, making sure that even thus we can maintain our ability to save and that we can cover the rest of our obligations.
What are the requirements requested by the bank?
-Be of age
-Being under 70 or 72 years old generally
-Income of at least one minimum wage
-Have an appraisal of the property we are looking for
-Have the promise of sale or the letter of intent to sell
-Photocopy of ID
-Recent labour certificates
-Certificates of income and withholdings
You must bear in mind that you can appear alone or with a family member, adding income will allow you to access better financing opportunities.
What are the most common mistakes when applying for a loan?
One of the most frequent mistakes is to look for additional capital through a free investment loan to complete the initial installment of the home loan, it is a very big mistake because in the end, it is not only that we can pay it, but everything that It implies, what will we give up for paying two loans at the same time, that is, a mortgage loan is already enough of a burden on our personal finances, as well as to get into debt with a free investment loan.
Another mistake when planning the purchase of a home is not having additional expenses such as the deed, the property tax that is paid every year, in some parts of the country it is paid quarterly, others such as the adjustments that the property needs, for example, if the apartment is delivered to us with finishes or it is time to do work.
Basic tips so that the bank does not reject my application
-It is ideal that your credit score is above 700, definitely if you have a credit score above 800 points much better.
-If it is possible to check your credit score before in Datacredito and Transunion, to start improving it little by little before applying for a mortgage loan, because many times what can happen is we realize that we do not have the necessary qualification to obtain that credit, and then we resort to free investment credits or informal credits which is not indicated in these cases.
-Don’t apply for loans at all banks, because every time they check your credit history, query traces are created and normally when we have many of these, banks take it as a sign of desperation and that can lower points in the evaluation of credit that the bank makes when deciding whether or not to approve the credit.
-It is very important that the use of revolving quotas (credit cards, overdrafts, credit cheque, revolving, revolving quotas) , are below 60% for several months before requesting the mortgage because if we have the quotas through the roof will play against us.
– If your income is low, it is better that you apply for a home loan through compensation funds and savings and credit cooperatives.
-Ideal that the mortgage credit is your only credit, if you have a controlled level of spending, the financial institution will see that there is enough space for the mortgage loan instalment.