During the summer period, there is an increased interest in home loans. Want to know the basics before buying a home or taking out a home loan?
One of the most basic needs is to know what we consider to be creditworthy and to what extent, that is to say, how much we can borrow, what basic criteria are, how long it will take before the installment can change.
What amount of home loan can be taken out?
The amount of credit that can be borrowed is almost always dependent on two factors: certified monthly net income and the value of the property being offered as collateral. Of course, this could also be the property you are buying. Attention: Depending on your bank, which income is acceptable! Income can be wages, entrepreneurial income, dividends, GYES, family allowances, pensions, etc., but it is up to the bank to decide which one you are willing to consider. Theoretically, the net income can be debited with credit repayments of 50% and 60% above HUF 400,000.
The value of the property
The real estate offered as collateral may be encumbered with up to 80% of its market value, but there are financial institutions that set a lower limit, thus providing only up to 50-60% of the value of the property. This proportion may also be area-specific, ie different rates are financed at different points in the country. In most cases, larger settlements, such as county seats, have higher funding rates.
We need to have a job of at least 3 months at the current job (some jobs may require up to 6 months). In order to verify income from a business, the business must have at least 1 full closed calendar year. This means that, for example, if your business was registered in February 2014, the first full year closed could only be 2015, so we can verify income from our business in 2016. At least the minimum wage must be verified from wages, entrepreneurial income and possibly final pension. This can be supplemented by so-called supplementary income, such as GYES, family allowances, child support, etc. It depends on the financial institution which one it accepts.
You must have the minimum equity required by the bank for buying a home, typically between 20% and 40%. We need to offer the bank real estate cover. This is usually the property you want to buy, but there may be a different cover.
Review Time. The average evaluation time is 1 month, but in some cases it can be up to 2 months. If new and relevant information becomes available during the credit assessment, the financial institution may request new papers.
How often can our installment payment change?
Over the long term, our repayment schedule may change several times, and may increase or decrease equally depending on the long interest period we have chosen. The interest rate on the loan remains unchanged during the interest period. The average interest period is 1 year, now it is possible to choose loans with a constant repayment period of up to 15-20 years, although they are typically much more expensive but also more predictable.
But can be up to 35 years. It is worth considering that the longer the maturity, the higher the total repayment. The installment installment should not be as much as we can pay, but allow us to determine our actual payload, since the installment installment may increase and our income may decrease over such a long period of time.
Home loan without own resources? It is not impossible. One solution is to include a so-called replacement cover in addition to the property you want to buy. In such cases, the value of the two properties may be so high that the amount of the loan that can be borrowed can cover the entire purchase. Alternatively, the amount of the CSOK may be self-financing (bank dependent).