Having a home of your own is a dream that many see truncated by not having enough savings or liquidity. The normal thing before venturing to ask for a mortgage is to have a previous economic mattress, however that does not mean that it is essential to have some previous savings to request a mortgage loan. We tell you all about asking for a mortgage without savings.
What is a mortgage?
A mortgage is a mortgage loan granted by financial and banking entities with the purpose of financing the acquisition of a home or property. As it is a financing with high capital, the requirements and conditions are stricter than in a conventional loan.
New mortgage law: necessary measure for the economy
Previously, mortgages had a series of associated expenses that made the loan more expensive. Therefore, it was necessary to have extra liquidity to be able to assume these extra expenses. However, this scenario has changed with the new Mortgage Law. One of the notable improvements in this new regulation is that all the processes of requesting a loan for the purchase of housing are regulated in a safer and more transparent manner.
Request a mortgage without savings; recommendations
It is recommended that when you go to subscribe your mortgage credit do not base it solely on economic issues, it would be best to take into account other aspects. Financial institutions focus on two aspects when granting loans of this type: the ability to pay and what the real guarantee is worth.
Buying a home always carries a series of responsibilities and risks that must be taken into account. Therefore, counting savings and liquidity support is always convenient to avoid falling into debt and to meet the monthly installments.
Despite having periodic income, it is advisable not to use more than 35% of these for the payment of the monthly fee. And on the issue of linkages, we would only have to accept those that are of our interest and serve to lower the interest rate.
How to request a mortgage without savings?
First of all, we must know that the mortgage loan is a long-term payment commitment and will affect our daily economy . You should keep in mind that the greater the capital and the longer the repayment time, the more the amount to pay for the loan will be more expensive.
To apply for a mortgage you must have demonstrable stable income and not be on any type of delinquency list. If you meet these requirements you can go to the banking entities to apply for the mortgage loan, either physically or by applying for the mortgage online.
Requirements for new mortgage loans
Due to the foreclosures that happened in times of economic crisis, they have made financial institutions set more stringent rules and requirements before requesting a home purchase loan. In general, only mortgages are given that cover 80% of the appraised value of the property or the sale, always the smaller of the two. Therefore, in these cases it is necessary to provide savings of between 20% or 30% of the value of the appraisal.
So it is not possible to apply for a mortgage without savings?
However, it is true that some banks offer 100% financing of the home if you buy a property that they sell themselves. In these cases it would be easier to apply for a mortgage without savings, since in addition to the new Mortgage Law .
From Hank Morgan we recommend that if you are going to apply for a mortgage without savings, you should keep in mind that you will have less chance of being granted it . In addition, you will have to have sufficient economic capacity to be able to face the monthly installments in a responsible manner and without falling into debt.