How to get a better mortgage

by Mortgage March. 01,2023
How to get a better mortgage

In such an era of inflation, more loans mean more assets can be mobilized, and there are more opportunities to dilute debt. Whether you buy a house for a need, an improvement, or an investment, more mortgages can help you better.


So how can you get more mortgages and why can't you get the same loan terms that others can approve.


Mortgages are provided by banks, so let's see how the big banks think about loans.


The mortgage is a very high quality loan. The bank is ready to issue a mortgage, so as long as you meet the bank's conditions, the bank will still fire you if you buy a house.


Banks generally judge three conditions: mortgage repayment capacity, guarantee of guarantees and personal credit. Since banks are risk averse, banks will make a complete judgment on the applicants and will only grant loans if three conditions are met at the same time.


Let me talk about the repayment capacity.


The banks will mainly review your tax revenue and ask you to provide salary by credit card or income tax receipts for the past six months as application documents. The payroll flow of the bank card (you can go to the bank counter to print the list) must have a postscript "salary" or "salary", which can be considered as actual tax income. The repayment capacity is generally half of the personal after-tax income (and spouse) + (income from the housing provident fund and income from the additional provident fund), the repayment capacity is greater than your monthly capital + interest. The repayment capacity is the most important indicator for deciding on a loan. The higher the repayment capacity, the more loans you can get.


In order to corroborate your tax revenues, the bank will also ask you to issue a salary certificate. The employment certificate must include the individual's salary position, salary, years of work, etc., and will also keep the telephone number of the contact person of the company's human resources department for an inspection. random.


Let's talk about guarantees.


The warranty is the property you purchase. The total amount of bank loans can be up to 70% of the residence, which is the asset to which ordinary Chinese have access to the highest mortgage rate. If you are buying a house firsthand, it is easy to calculate, based on 70% of the total amount of the presale contract. If it is a second-hand accommodation, you must assess the valuation of the business. Depending on the price of the appraisal company, 70% of the price is highly variable, as the appraisal company generally estimates the transaction data for each community in the community and the mall area as an estimate sample. However, due to the rapid rise in housing prices in recent years, historical prices are generally low and, due to the need to avoid the tax on second-hand housing, the stated price of housing transactions d opportunity has been adjusted downward, so the appraisal company's estimated price will be lower. In general, the more recent the community, the higher the evaluation. According to the calculation of 70% of the underestimated price, it is indeed difficult to reach 70% of the real transaction price, generally 60%. In a community where unit prices are unusually high, like the old broken school district, it can usually only reach 50%.


Finally, personal credit.


The bank's judgment on personal credit comes mainly from the credit report. The credit report is a national unified personal credit system set up by the People's Bank. The collection of data comes mainly from the personal information of individuals when dealing with credit business in various banks, including personal identification information of credit cards and various types of loans, as well as the amount, cycle and repayment of the loan. Detailed information such as payment status. As long as you have a credit card or a loan in a bank, your information will be collected by Banque Populaire (in recent years, information such as utilities, electricity, water and coal has also been added ), then shared. The bank adopts a veto system for a vote on the results of the credit report. If you have bad credit, such as overdue credit cards and a long-term payment d e water, electricity and coal, this will directly affect the bank loan.


In addition, the bank can also know from the credit report that you have liabilities, which will directly deduct your repayment capacity. If you already have a mortgage, this will directly affect your eligibility for the first mortgage application.


Then some suggestions.


Before signing an agreement to buy or finalize a home, it is best to check the PBOC credit report and carefully observe the delinquent and indebted situation in the report to avoid tragedy when the loan application is denied . If he is really late, you can try to communicate with the account opening bank, because the account opening bank has the power to submit to the PBOC to cancel the late change procedures, depending on your communication skills and your contacts. Do not panic if it is really late. Late information is not permanent, it is only valid for 5 years and will disappear in the past.


If you want to maximize your mortgage, buying a first-hand home is most appropriate, since the first-hand home is based on the actual transaction price as the valuation price. Although it is more expensive, it is better to generate debt. Developers usually have designated banks and the collective demand for loans will also be rapid.


If you have a lot of cash income, like rent, business welfare income that doesn't take a bank card, this part of the funds can increase your repayment capacity, what you need to do is deposit a bank card fixed at the bank on a fixed date each month In the formation of riverbank water. When the repayment capacity is assessed, the rental contract or the corresponding salary certificate can be provided, which can be confirmed as income by contacting the bank.