Banks are beginning to have a broader view of the minimum requirements needed to apply for housing loans, which, coupled with interest rates in historical minimums, makes it clear that this is the time to move forward in this major financial commitment. The Portuguese, for their part, are already beginning to be more financially formed and always compare their own credit habitation.
After the subprime crisis emerged in 2008 – also known as the bubble of real estate speculation – the recovery of the market has been somewhat more regular, there are already signs of the resumption of confidence by consumers.
As intimidating as it may seem to enter the housing market, the advantages can be enormous if you know how to make the process in a correct and thoughtful way. If interest rates are falling, the benefits of housing loans are lower due to the decrease in Euribor.
So, at a time that seems ideal to prepare your finances for a housing credit, we share with you 6 essential steps. It's all the fruit of the experience of our vast clientele portfolio.
Find a housing credit concordant with your financial situation
See in detail the price of the housing credit you wish to request. Buying home can help you build and qualify a history of taxes, which may have some return. Unlocking these benefits depends partly on getting a housing credit that makes sense – financially speaking – for you.
For example, a housing credit at a fixed rate gives you, as a general rule, a higher initial rate, but at the same time the security that the monthly installments will remain the same, while in the variable rate mode The interest rate is typically lower, but can Climb at any moment, catching him by surprise. If you cannot find a housing loan that meets your situation, it is best to expect and better evaluate the scenario later.
Build a good credit history
For banks, credit history is one of the most important factors to consider at the time of assessing the application for a housing credit. If you do not have a history of credit payments, it would be beneficial to start having, since it is well regarded by financial institutions and shows you that you are a trustworthy customer.
But please note: Do not contract personal or other credits between six to two months prior to requesting a housing credit, because many recent requests may trigger a red alert and cause the institutions to think they are desperate To have a credit. It's best to build history in advance.
Reduce the expense/revenue ratio
When they consider the request for credit, financial institutions always look for the rate of effort of those who order. For them, the monthly debts they can pay with the revenues they have per month are a good indicator that they can contract a credit to housing without major problems.
While considering whether or not to buy a house, it helps to keep credit card debt as low as possible and to think about consolidating all debts in a single lower monthly installment.
Calm the debts
Requesting a new credit card or personal loan increases the rate of effort, which can lower the value of the credit history and consequently have negative impact on the request of the housing credit or the interest rate practiced.
So if you're thinking of asking for a loan to buy a house, it's best to stop asking for other lines of credit in the previous 6 to 12 months. Too many recent credits can be a red flag, sending a message to banks that are desperate for capital.
Banks have a number of formulas and calculations for which they look when they examine the request for housing credit but, above all, are trying to Create a contract in which the confidence is stipulated in you and how you will pay back a loan of hundreds of thousands of euros.
As such, the institutions will examine their credit history to "thin comb". How you managed previous debts is the best indicator you have regarding how it will be with the future debt. Think about your behavior. Failed payments are a bad sign for the bank. You have to be in the best behaviour when it comes to credit management.
Educating yourself in the credit situation
Once again, having a good credit history is crucial to getting a housing credit to a good interest rate. You can always get a loan without an exemplary history, but the structure and rates available will leave you paying more than you should.
In view of the bank's assessment, it should definitely take into account the credit history and report, before any institution does. Your credit history also helps you identify areas of improvement. For example, the credit card utilization rate – the ratio between card debt and plafond – can have a greater impact on your history. Basically, something as simple as increasing the credit limit can improve your chances at the time of asking for a housing credit.