The Salary and the Loans: Any Solution?

In addition to the client’s salary, the bank and financing companies analyze the value of the property, and other sources of income for the client and / or their spouse or partner.

Something to take into account, along with income level, is age, the type of professionals they are for mortgage loan approval , maintaining a stable job and income, and being active in the job market; which reflects that the client will be able to meet theĀ  monthly payments of the mortgage loan .

Mortgage loan installments

To calculate the monthly payments of the mortgage loan, you have to know the total value of the property to be acquired, the term to pay the loan between 5 and 25 years, the savings available for the initial installment and the bank’s annual interest rate. For the auto title loans the options are easier.

Requirements to meet

To access a mortgage loan, they must meet the requirements. Depending on the entities, there may be different requirements, but the usual ones may be:

  • A minimum of work seniority
  • A minimum income
  • Minimum age: be over 18 years old, in some banks 21 years.
  • Nationality: Be Chilean or foreigner with permanent residence in the country
  • Background: Have a good business record, have no debts or current protests. And not be in Dicom.

Work seniority: At least 1 year of work seniority or start of activities if they are independent. If the salary is variable, they must refine the monthly earnings by 20% or 30% to have a monthly insured amount. Some banks are demanding with variable salaries, so if they work in a dependency relationship and charge a fixed salary, they will have more possibilities.

Salary: The dividend to be paid may not exceed 25% of net income. If they collect 1 million pesos, they must have 250 thousand pesos to pay the fees.

Savings: Have money to pay the initial fee or the foot. Banks do not grant 100% of the mortgage credit, so it is better to have savings. The bank can grant them up to 80% of the value of the home, and up to 90%.

Extra documents: Some banks may request proof of marital status or current address.

Appraisal of the property to be acquired

The bank will apply an appraisal of the property to be purchased and may request extra documentation, about the property or others. By meeting the requirements they also meet the requirements to buy a home.

Each financial institution and bank may request different requirements and documentation, although those mentioned are the average that can be requested.

In short, to apply for a mortgage loan, obviously, you must meet a minimum monthly income defined by the competent entities, but socio-economic profiles must also be taken care of in order to be able to classify as a person suitable to obtain a mortgage loan, since the entities financial institutions assess the risk of the loan and it is essential that the conditions established as necessary are met.