The real estate loan and its premises
So that the dream of a home can finally come true, are you thinking about a loan? You are not alone in this, because borrowers receive very cheap loans via citrusnorth.com is an online direct payday lender. However, to get this loan, you must meet certain requirements. But do not worry, it’s not that complicated. We clarify the requirements for a loan.
Which mortgage loan requirements are there?
Future builders or homeowners often wonder if you need to meet certain requirements to get a loan for mortgage lending? Yes, you have to – and the following:
- Age: For a loan, you must be of age, but should not have exceeded the age of 75 years.
- Residence: You must be registered in Germany and have a bank account in Germany.
- Collateral: As financial security, you must have a regular (monthly) income. You do this, for example, by submitting a salary certificate when applying. The point is that you can prove that you have an indefinite employment relationship and that the Bank can, therefore, assume that you can service regular installment repayments. As an employee, your employer can issue you with a corresponding certificate. In this context, the bank checks your creditworthiness: It also asks Schufa about this. It does so to clarify whether you have met your previous payment obligations reliably. On this basis, the bank then calculates your individual loan, above all the amount of interest. The riskier the lending for the bank, the higher the interest rates.
Good to know: The better your credit rating (personal as well as real), the more attractive the terms and conditions of lending will be. Do not be surprised if the bank also checks the future development of your earnings in this context. The reason is the new real estate credit guideline, according to which credit institutes must examine their customers more closely because in the future they get a right of revocation for loan contracts.
In principle, a prerequisite for a real estate loan is particularly important: Plan the installments so that you can cover them with your monthly income while still leaving enough money to cover your living expenses. This is the only way to ensure that you can finance your property and pay off the loan without experiencing financial difficulties.
How much equity is recommended?
As a rule, you can also externally finance a property at 100 percent of the purchase price. One speaks then of a so-called full financing. Since the risk share of the lender from 90% debt financing is significantly higher, an equity stake of at least 20 to 30 percent is recommended. Why? The more equity you use, the lower the monthly installments and the interest rate. In other words, a higher equity ratio will make your overall credit cheaper. It also reduces your risk by lending less money to a third party and ensuring its repayment.
With your family in your own four walls **
Important! Calculate in the amount of your required real estate loan also important purchase costs include:
- Cost of land transfer tax
- notary fees
- Costs for the real estate agent (brokerage commission)
The real estate loan and its requirements at a glance
Here are all the requirements for a loan in short:
- Place of residence as well as an account in Germany
- Good credit
Our tip: To get a first non-binding impression, use the Baufi interest calculator 1822direkt. Contact our mortgage lending experts to discuss your approach and plan your mortgage lending in detail. This will give you valuable information, for example on government funding opportunities, conditions or special promotions.