Every young person entering adult life would like to start it on their own account. He would like to have his own – as the saying goes – narrow, but his own, where no one will tell him what to do, how to live. It is known that for banks such a man at the beginning of his life and professional path is not a very convincing customer. They are reluctant to establish closer contact with them. If we can’t count on help from parents or if we don’t have a chance to live after grandma, then we have a mortgage .
But it’s not easy for him to be a young man. We take such a loan for many years. Is it even possible to get a mortgage right after completing education and without additional certification?
Even against real estate, banks are not willing to give loans to young people. Because, as a rule, the costs of the loan itself and additional costs associated with taking it, such as penalty interest, recovery costs and other costs may exceed the value of the property. Therefore, it is not enough for young people alone to have a flat or a house secured.
What else we can do?
Often parents wonder how they could help their branch start. If they are unable to provide him with housing in full, they try to support the child, although with their own contribution. Will such a 30% contribution be sufficient? Such own contribution plus collateral on real estate is already something, but for most banks it is still not enough.
Is it possible that we will find an offer somewhere in which 30% own contribution and mortgage on the property will be sufficient collateral for the loan and no additional income certificates will be required?
Difficult case. Maybe if the own contribution were higher then the chances of credit would increase. There are such offers, although they are few, but they do.
With a loan, the bank can finance 60-70% of the value of the property purchased
One could say that banks are a bit malicious and do not give young people a chance to stand on their own feet. However, this is not exactly how it looks. Banks are bound by banking law and must comply with this law. First of all, the bank must take care of its interests and can only help us if it has a guarantee that we will be able to pay back the liability.
If we are unable to show income, the bank is not sure that we will be able to pay the loan installments. And why is mortgage collateral insufficient?
Because in the event of our failure and implementation of debt recovery proceedings, instead of making a profit from the interest on the loan we have taken, the bank will have to deal with the sale of the property covered by this mortgage.
Yes, you can find a bank offer, in which only your own contribution and mortgage are enough and no income certificates will be required, but there are relatively few of them and certainly the conditions will not be as favorable as in the case of a loan with a certificate of earnings.
The bank needs collateral in the form of a mortgage and earnings certificate
Then it is much easier for him to assess whether we will not have trouble paying the debt.
If we have already reviewed most of the offers and it turns out that without an income certificate, our chances of getting our own “M” are moving away from us more and more, it remains for us to get acquainted with the offer of non-bank companies. These companies increasingly meet the needs of customers. In addition, they are not so restrictive in granting loans or mortgage loans.
Even if we have no income from work, but we have maintenance, scholarships or other regular benefits, our chances of injecting cash are much greater. The more that we can quite often find proposals similar to bank offers. Similarly, we can take advantage of the repayment period over many years.
Another solution may be a mortgage . Both banks and non-bank companies provide such products. The difference is that neither banks nor companies will finance the value of the property in full, but only about 60-80%.
Young people whose parents pledge their property and yet commit themselves will have a comfortable situation and as a gratitude we will focus on paying that obligation. If we were in such a comfortable situation, we should appreciate it. It would take us many years for us to become a reliable customer for the bank.