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What do banks look at before they give you credit?

Have you found your property? It only remains to finance it. Often this step is not the easiest. Unless you have the amount in your pocket, you will have to borrow the necessary amount from a bank thanks to a mortgage. An approach that can be a source of concern when you know that your future monthly charges depend on your credit conditions. It is therefore better to prepare to put the odds on your side and get the best loan. What are the points to work on? Here is what banks look at first before granting a mortgage.

 

1. Managing your budget

1. Managing your budget

Before lending you a large sum, a bank wants to ensure that you can repay it regularly and without difficulty. She will therefore look carefully at your ability to manage your budget: does the client regularly set aside? Does he sometimes end his month in the negative? Does he spend without counting or follow a certain rhythm of expenditure? In short, is it capable of supporting a heavy additional load each month? The bank will find all of these answers in your account statements where it will look:

  • Your income
  • Your current expenses (food, outing …)
  • Your fixed charges (rent, electricity, gas bill, subscriptions, packages …)
  • Your consumer loans
  • Your possible overdrafts
  • Your savings
  • Your debt ratio (the bank will ensure that your monthly mortgage payments do not exceed 1/3 of your income).

 

2. The professional situation

bank

To be sure of being reimbursed for the entire duration of your loan, a bank will prefer a stable professional situation. So, for example, be sure to wait until your trial period is over before presenting your file to the bank.

 

3. The contribution

money loan

Myth or reality? It would be hypocritical to tell you that you can borrow without contribution. In a very large majority of cases, a bank asks its client to already have part of the amount of the asset in their pocket, generally 10 to 20% of the latter. On the one hand it reduces the amount she lends you, on the other hand, it reassures her on your ability to manage your budget and set aside.

 

4. Your organization

4. Your organization

This may seem obvious but a bank will be reassured about the seriousness of your approach if you are punctual at the appointments and if you present the documents on time. So be careful not to send them over the water but to collect them all in a folder before transmitting them.

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