Very often, to fulfill your dreams about your own apartment you will need to take out a mortgage. No one enters such a costly and long-term commitment to the bank with joy, but there is currently a no better option. The problem is that the loan for young people for their own apartment is not as easy to get as it may seem. In that case, how to increase your chances of getting a mortgage?
Take a loan with at least one person
You can try to apply for a mortgage yourself, but such action has very little chance of success. Not only would a positive credit history be needed at the Credit Information Bureau, but also very high creditworthiness. In practice, this is almost impossible.
The situation changes when we take a loan together with another person or persons. The joint creditworthiness is higher, and in the absence of timely repayment of installments, the bank will be able to file claims against both debtors.
Very often, loans take marriage together, but there is no such requirement. So who is the loan guarantor? You can take a joint mortgage while remaining in an informal relationship, you can also take out a loan with a family member, friend or even a stranger. The only thing that matters is how high a person’s creditworthiness is.
It is also worth mentioning that borrowers do not have to be two. For example, you can also ask for a third person to participate in the loan to increase your chances of getting it.
Take care of your credit history
High earnings and low expenses are not everything when it comes to housing loans for young people. The credit history is also important. Negative entries in the Credit Information Bureau can greatly affect the likelihood of getting your dream loan.
Contrary to appearances, empty credit history is also not an optimal solution. In such a situation, the bank does not know how a given customer will behave during loan repayment, whether it is reliable and trustworthy. Therefore, empty credit history is not much better in practice than a negative one.
It is therefore good to build a positive credit history for some time before applying for a loan. This can be done, for example, by taking cheap, small loans or taking, for example, electronic equipment in installments. It is not about indebtedness and worsening your financial situation – it is worth doing it only if we can pay our debts on time.