Today, almost every bank is engaged in issuing a loan for the purchase of the real estate. There are categories of citizens with whom financial organizations cooperate more actively because they consider such borrowers trustworthy. And there are also some borrowers whose mortgage transactions are considered risky, which makes it difficult for them to get such a loan.
Individuals without a fixed income
For the purchase of the real estate, a person usually takes a large amount of money, and therefore the bank wants to know whether a person can cope with paying such a serious loan. If a person works informally, they will not be able to get an official salary certificate from their employer. This will already be a serious obstacle to getting a loan. You can try to find a financial institution that will take into account other evidence. First of all, we are talking about providing a certificate from the employer in the form of a banking organization or in a free form. This document is already proof that a person has a stable monthly income. A significant proof, in this case, can be a statement from a bank account that receives unofficial wages. This bank document will show the lender what the potential client’s monthly income is.
Today, many citizens are engaged in freelancing. This method of earning money has certain advantages, but there are also disadvantages. Such a free employee does not pay taxes on their earnings, that is, they are not a tax resident. When applying for a loan, the income of such a specialist can not be considered the main one, it will only be considered as additional earnings. There will be a dash in the main income column, and this significantly reduces the likelihood of getting a mortgage loan.
Until recently, banking organizations were reluctant to enter into mortgage lending deals with such borrowers. Today, individual entrepreneurs are less likely to receive a refusal. These borrowers can submit all the documents that are required for such a loan. If there are difficulties with obtaining any paper, you can try to get a mortgage on two documents at all, but in this case, you will have to pay a larger down payment.
There are a number of professions that financial organizations consider risky. With such borrowers, most banks try not to have anything to do. If banks agree to a deal with pilots, military personnel, stuntmen, etc., they insist on mandatory health and life insurance. Insurance companies are also wary of such customers and prefer to insure them at an increased rate. Having agreed to insurance, such persons can count on approval of the mortgage application, obtaining a housing loan on general terms.