The mortgage loan loan has had a broken reputation – but it is no longer well deserved. Here we give you six situations where a mortgage loan is the best solution.
You have been rejected by the bank or the mortgage institution because the cost of the home you are seeking a loan for is too cheap. While that sounds strange, this is actually pretty normal as most banks and mortgage providers have a minimum threshold of 500,000 for home purchases.
Rejected in the bank due to low price
The logic is simple: the earnings on the loan are too small relative to the cost and time spent managing the loan.
In this case, it makes good sense to use mortgage loan loans, as mortgage bond investors do not work with minimum limits for the size of the loan. Mortgage loans are also particularly suitable for low-cost housing, as the monthly price difference in relation to mortgage financing is more manageable.
Interest: 3% mortgage / 7.5% mortgage
Monthly net mortgage payments: approx. 2100
Monthly net mortgage payment: approx. 2900
Difference: USD 800 monthly
The difference is only approx. 800 for a mortgage loan and the cheaper mortgage, which probably has to be considered clear to most.
Rejected in the bank due to the location of the property
Banks and mortgage companies daily reject countless home buyers on the grounds that they do not like the location of the house – even though home buyers often have a healthy economy.
This is because many banks and mortgage lenders have a clear policy that they would like to avoid the most difficult locations, ie the regions where the dwelling times on housing for the longest time.
Here you mention is made of Odsherred, Lolland-Falster, Langeland and large parts of North Jutland and Funen. The argument for systematically rejecting home buyers with a healthy economy based solely on the location of the house is that banks and mortgage lenders in connection with the financial crisis have already lost large sums in these areas, and because these areas are also typically characterized by having the longest dwelling times on housing. .
Therefore mortgage loan:
Mortgage financing is a good alternative for those home buyers who find that, despite a healthy economy, they are rejected for home mortgages due to the location of the house. This is because mortgage bond investors do not work on the same cash thinking and conservative credit policies as the banks. Here, the individual loan case is assessed on the basis of an overall assessment, based on the quality of the home and the home buyer’s finances.
Rejected in the bank due to poor credit score
Banks and mortgage lenders increasingly base their credit ratings on the basis of advanced data, including credit scores, which aggregate one’s entire history in the bank in a single key figure, which should then be able to assess whether one is creditworthy or not.
This means, among other things, that if you have had a difficult period and used your cash credit for years back, it can still negatively affect your credit rating. This also means that if you have chosen to take out a car loan instead of leasing your car, you will automatically get a worse credit rating.
The mortgage letter market does not work with credit scores at all (and God forbid!). In practical terms, this is due to, among other things, that mortgage loan companies rarely have longer histories on their customers, as mortgage loan providers only offer mortgages and therefore do not have the ability to withdraw data from payroll or similar.
Rejected in the bank due to low availability
Banks and mortgage lenders typically work on the basis of some very specific requirements for a household’s availability, depending on the number of adults and children in the household. The availability requirements vary slightly between the players, but there are some rules of thumb that may be useful to most.
For each adult in the household, an amount of USD 5,000 is typically required, and for children the amount is approx. Thus, a family with two adults and two children will have a disposable race of approx. 14,000 monthly.
Therefore mortgage loan:
The problem with banks and mortgage lenders is that they base their credit rating to a greater extent on the basis of some fixed rules on, for example. availability, rather than looking at how much the family has been able to manage in the past. In the mortgage loan financing market, similar credit policies and rules, for example, do not apply in the same way. rådighedsløb.
Instead, the individual loan cases are assessed on the basis of a specific assessment, which allows individual families to be approved for credit despite a small amount of availability, if they can prove that they have been able to live for this amount in the past.
In addition, loans are also being offered to a greater extent. apprentices or students, although their availability is very low in the short term. This can be done because young students or apprentices are often used to living on very limited funds and because at the end of their studies, they can expect greater revenue growth.