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how to get financing from your bank

The current economic situation has led to a tightening of the banks when granting mortgages, refinancing or credit. Today we give you some tips to increase the chances that you grant or loan refinancing.

1) home ownership

If we get a refinance it is critical that we have any property or property to ensure the operation and make us of collateral. Usually it is preferable that this property is a house, but is becoming more common to be put in commercial endorsement, industrial, and some types of terrain, especially if these have been classified as urban. Regarding the latter, usually the land does not meet these criteria are often denied by financial institutions. An important thing to know is that housing can also be rented to others, although this can influence somewhat the loan application, since we could lower the risk limit on the appraised value. In the case having no property, can enter the operation of a family member or acquaintance. In this way we get the loan, and ensure the operation of housing.

2) Income

revenues prove we can be both payroll (working party) as an independent income, or income as well as a pensioner, or grant temporary or permanent disability. Sometimes the financial agent can also accept company certificates relating to overtime and productivity bonuses. Either way, the quota to be faced in each payment should not exceed 35% -40% of the total income (including all holders who enter into the transaction) when to refinance debt. That is, if we ask more than 35-40% of what we are winning (at least the part that can be justified), we reduce the chances that the bank will grant it. This variable is called debt ratio or debt capacity.

3) appraised value

Although the above points are key, perhaps the most important is the assessment that we make on our house, as this will be that we open the doors of a refinancing. This is a must, and depending on their results, the bank sets the value of the loan. This amount may also vary depending additional guarantees that we present. Generally, banks for a debt refinancing transaction typically provide a maximum of 80% over the appraised value if the property provided as collateral is a home.

4) Other things to consider

If when asking for a refinance we are in a database of delinquent Asnef type, Rai, Experian, or if we have a foreclosure problem, it is possible that the financial institution or we are denied credit, or give us a maximum of 80%. Another aspect that is often considered an entity if a customer has a permanent contract or a contract temporary.

VIA - Capitalisblog