Among the first elements to understand before deciding to buy a house is our economic position and therefore clarify our FINANCIAL PLAN. If we do not have a large amount of money that allows us to buy cash, we will certainly have to decide to switch on a loan. Yes, but how?
The first aspect to pay attention to is certainly our WORK POSITION. The contract of employment we have in fact is the first element that the bank to which we will address will examine. Which means that the more our contract will be “secure” and the more we will be “well seen” by the bank. What does it mean?
For the bank a customer with a permanent contract will certainly be better assessable than one with a fixed-term contract and maybe a short-term contract. If you have a fixed-term contract then you can not access a mortgage? It’s not for sure. At that point, the bank could request greater guarantees and therefore the intervention of a guarantor. Before going to the bank, therefore, if we have this type of contract, we evaluate the possibility of having to ask a family member to act as guarantor in fact.
If instead we do not have a contract but we are freelancers, we call our accountant and let us give all the documentation that certifies our income and the historicity of our business.
Having ascertained that we have at least these first elements, we can go to our bank of trust and ask for FACTS of our situation. They will ask us the paychecks or our tax returns to understand how much the maximum installment will be.
Last but not least, it will be necessary to demonstrate to the bank our CAPACITY TO BE GOOD PAYERS. In fact, the bank will check through a database if we have ever had problems with the payment of previous loans and from there will understand whether we will be its aspiring customers or not.
At this point we will know from the bank the maximum amount of loan that can be paid and then we have clarified our budget for the search for our new home.