A bank or financial institution always assesses the credit risk it may run. This is why, the analysis of the profile of the applicant remains a crucial phase before the validation or not of the credit. The borrower must have a minimum of financial stability before being able to take out a loan, especially if it is a home loan. Here are some recommendations for having an adequate profile in order to safely take out a mortgage.
The borrower’s age and professional stability
To comply with the expectations of the bank or financial institution, you must be young to start taking out a mortgage. If you are between 25 and 35 years old, you can sign up for an immediate money loan. You will be directly classified among first-time buyers. In some situations, personal contributions will not be required. To this are added regular income as well as an unrestricted bank account. The bank still has a minimum to respect. It is important for this that the borrower has an income of 3500 dollars per month.
Choosing young people as a borrower promotes profitability for banks. Also, in most cases, borrowers are not limited to just a home loan. They also seek to benefit from the other credits which are essential to them in their different project.
Self-employed borrowers tops the list
The profile qualified as premium with banks is the borrower who practices a liberal profession. In this case, he can apply for a mortgage at a better rate. The most common occupations at this level are: architects, dentists, doctors, lawyers, notaries, etc. Anyone who practices a profession whose targets are large customers have the chance to take out a home loan. As long as she manages her own income, she is indeed the borrower that the bank accepts. A minimum of conditions is however laid down. It is the fact that the professional must have worked in this field for three years. It must also demonstrate the adequacy of its financial resources. Specialized establishments therefore need supporting documents on tax notices and profit declarations, over the three years of the company’s existence.
Medical students, attractive targets for the bank
This profile category is ideal for banking. Indeed, the latter have a profile that can have a stable monthly income that changes over time. The banks thus offer mortgage loans to the latter at better rates. At the same time, they also try to convince the borrower to take out other loans. Their goals is to compensate for this lower rate through the other offers.
Aside from these profiles mentioned above, civil servants are also target customers of the bank. They have stable incomes which could very well repay monthly payments on the mortgage. Faced with this situation, the rest of the world can still enjoy real estate loans. You just need a personal contribution so that the bank can review your situation.