The shortage of apartments for rent that affects large capitals pushes many citizens towards purchasing. After the social and financial crisis of 2008, which triggered mortgage foreclosures and evictions, the criteria for granting this type of loan were tightened, to the point that having a fixed contract and an acceptable debt threshold is sometimes not enough. to get credit. Therefore, when requesting a loan, other factors will have to be taken into account.
The bank is obliged to carry out an exhaustive and prudent evaluation of both the client’s solvency and the possible guarantors and guarantees of the operation. The decision is based above all on the ability of the mortgage applicant to meet the payment of the installments and not only on the value of the property to be acquired.
Thus, before giving the green light to granting credit, banks go to the Risk Information Center of the Bank of Spain (CIRBE), a database that collects information on the loans, guarantees and guarantees that clients have signed with the financial entities supervised by this body. The procedure is necessary to evaluate the applicant’s level of debt, which should not exceed 30% or 35% of income. And, in addition, the entities consult the defaulter records, which record, if any, unsatisfied payments on previous contracted loans.
Therefore, “you have to have a clean credit file,” says Javier Santacruz, vice president of the Association of Educators and Financial Planners (AEPF). And, if you do not have it, cancel the unpaid debts for which it is in the file. But sometimes debt representing less than a third of income is not enough: banks also pay attention to “the stability or forecast of future income” to evaluate solvency, he comments. It is for this reason that during the analysis it usually requests more than one income tax return.
Likewise, having assets that support the operation can facilitate obtaining credit in cases where debt exceeds 30% of income. Santacruz recommends classifying assets in these cases based on their liquidity. “Having assets that generate income can help,” he says.
Furthermore, “your consumption pattern says a lot about you, whether you are going to be able to meet your monetary obligations,” warns the financial advisor. It is for this reason that in cases where one is on the border of over-indebtedness, entities study the history of spending and use of the credit card, especially if the client tends to split payments or postpone them, as detailed by Santacruz. .
Another crucial factor in obtaining credit is having a sufficient savings cushion to cover the taxes on the operation – which represent approximately 10% of the value of the apartment – and the 20% of the sale or appraisal value that the entities do not finance. However, it must be taken into account that the Government has approved a line of State guarantees for an amount of 2,500 million euros aimed at facilitating young people and families with dependent minors to acquire their first home. The State guarantee covers up to 20% of the loan amount. The Balearic Islands, Castilla y León, Galicia, the Community of Madrid and the Region of Murcia have also adopted similar measures.
“When assessing the risk of the operation, banks usually look at the salary that the client earns based on the home they are going to acquire, the seniority of their position and job stability,” explains Leyre López, an analyst at the Spanish Mortgage Association (AHE). However, having a permanent contract is not enough to obtain credit, because the entities also analyze the sector to which the worker belongs. “A person who works in the IT sector is not the same as in another with less stability,” she points out.
Officials also have an advantage, although the bank will score better if the mortgage is made up of two holders than just one. Another factor that can end up tipping the balance in favor or against the consumer.
Likewise, in terms of risk, “an operation in which less financing is requested in relation to the price of the home will be more viable than one in which a higher percentage is requested,” adds the analyst, although ultimately it will depend on the profile. the client’s. “The more savings contributed, the better.”
What if money is requested for a second home? The entities “are governed by the same criteria, except that the percentage to be financed in these cases is a maximum of 70% of the purchase and sale value or appraisal,” López responds.
Another important aspect is the age of the client, since the older they are, the more restricted the credit is, which is never granted when the term of the mortgage exceeds 70 or 75 years, according to sources in the sector.
Finally, increasing income, reducing expenses and eliminating debt contribute to improving solvency. Objectives for which financial planning is essential.
