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5 FACTORS THAT CAN CONDITION THE APPROVAL OF YOUR MORTGAGE
If you are planning to buy a property and need to take out a mortgage to achieve this goal, it is important to know that not all applications are automatically approved. There are several factors that can influence the bank's decision, and being well-informed is essential to increase your chances of success.
In this article, we explore the 5 main factors that can condition the approval of your home loan and offer tips to avoid them. Read on to find out how to improve your financial viability and ensure you have the best chance of getting the funding you need.
- Credit History
Your credit history is one of the most relevant factors for banks when analyzing a credit application. This includes information on other loans (personal, car or credit cards), late payments and defaults.
Tip: Make sure you have all payments in good standing before submitting your credit application. If you have an unfavorable credit history, consider waiting until your financial situation stabilizes.
- High Credit Card Balances
Using a large percentage of your credit card limit can be seen as a sign of financial dependence. Banks prefer customers who demonstrate the ability to manage their finances in a balanced manner.
Tip: Reduce outstanding credit card balances before applying for a mortgage. Also, avoid applying for new credits in a short period of time.
- Frequent Negative Balances
Keeping negative or recurring balances in your bank account tells your bank that you may have difficulties managing your monthly budget. This is especially harmful if you are frequently using debit authorisations or the authorised overdraft limit.
Tip: Organize your finances to avoid negative balances. Good monthly planning can make all the difference in demonstrating to the bank that you have a stable financial situation.
- Late Payments
Late payments, whether for credits, utility bills, or other financial commitments, are a warning sign for financial institutions. Even a one-off delay can negatively impact your risk profile.
Tip: Automate your bill payments to make sure nothing falls behind. This small effort helps to build a positive track record with banking institutions.
- Spending on Betting or Gambling
Banks take into account gambling-related expenditures, as they can be seen as risky financial behavior. This type of expense can compromise the perception of financial stability.
Tip: Avoid frequent movements related to gambling, especially in the months before applying for credit.
HOW TO INCREASE YOUR CHANCES OF APPROVAL
Having the support of an experienced credit intermediation team can be a decisive factor in increasing your chances of getting a mortgage approved. These teams help to:
- Analyze your financial situation in a personalized way;
- Identify points of improvement in your financial management;
- Present solutions to optimize your risk profile with banks.
At Prediclub, we have professionals dedicated to guiding you through all stages of the financing process, ensuring that you feel confident when submitting your credit application.
Being well prepared is essential to ensure that your mortgage application is approved. Remember to avoid situations that could damage your financial image and, whenever possible, count on the support of specialists.
If you are ready to take the next step in acquiring your property, contact us. We're here to help make your dream come true!
