The guarantor is a figure that can help a user access financing that exceeds on their mortgage loan. However, the reality is does it work that it involves certain risks. When applying for a mortgage loan, in order for the bank to allow us to access financing. We must meet a series of requirements . Among the most common are the following: having a stable job, no more than of income being used to pay monthly mortgage loan installments, having a clean credit history and, in some cases, you can request a bank or personal guarantee. For this reason, we will tell you how a personal guarantee works. Mortgage guarantee: What is a personal guarantee? The personal guarantee. Is a figure that acts as a guarantee before the banking entity . In other words, the person who agrees to be a guarantor for a loan agrees to take charge of the debt in the event that the future owner cannot pay the monthly mortgage payments. This guarantee can have the same duration as the life of the mortgage, however, in many cases it has an expiration date.
In which cases is a mortgage guarantee requested?
It is necessary to clarify that this is not a figure that is requir in all mortgage loans. The request for a mortgage guarantee will depend on the financing provided by the bank and, also, on the profile of the client requesting it. For example, if the money that the bank will lend is going to excee of the amount of the home the bank. Will most likely require a guarantee Spain WhatsApp Number Data for the mortgage. In this way, you will have support to ensure that the money you borrow will be return even if the owner is unable to pay the monthly payments. On the other hand, the applicant’s profile can also influence . For example, it is common for younger people to be aske for a guarantee, since the bank considers that they are not people who have financial stability. There are even banks that provide mortgages for young people under years of age; to access them they must have a guarantee. The Government announced a measure through which the Official Credit Institute (ICO) guarantees the mortgage loan for those under years of age and vulnerable families.
How much does it cost to request a mortgage guarantee?
Banking entities are not only in charge of analyzing the profile of the applicant. They will also analyze the profile of those people who will be guarantors of the mortgage. This is logical, since the guarantor will be the one to pay the debt if the mortgagee reports that. He cannot continue paying the mortgage loan. In other words, although a person may think about adding a Singapore Phone Number List guarantee to access greater financing. They will have to analyze whether they will be able to meet the costs. So, it is very important to be clear that requesting a guarantee involves a series of costs. These may be those that occur at the time of carrying out the study of the guarantor and. Once the existence of said figure in the mortgage loan is formaliz. Having a guarantee for the mortgage is a very good idea, however, it is essential to previously evaluate the risks involv. Remember that the guarantor may end up facing the mortgagee’s debt. Carrying the burden of paying each of the mortgage installments until it ends.
