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How to get an approval on the financing? Of course, banks like to get back the money they give consumers. Hence, it is logical that they give housing credit more quickly to people with a good track record of repayments on other loans. The more fulfilling you are throughout your life, the more likely you are to see your application approved.

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Do not let the balance of your current account go negative, especially if it is regularly, as this may give the impression that you are a fickle customer and banks do not appreciate this. Even if it is not the fault of an unemployed person or of having taken a cut in the salary, the bank’s privilege who has a stable professional situation, implying that it is best to have a permanent contract, to work in a financially solid company and to be employed there time. This is undoubtedly a factor in customer risk analysis.

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Consequently, income stability also influences the bank’s perception, as it is important for loan holders to be able to meet the monthly installments, especially if interest rates rise. Ideally, the monthly burden of household income should not exceed 40% of household income.

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The higher your home entrance, the higher the percentage of financing the property value will get (this is called the Loan-To-Value ratio). In this sense, the capacity for savings is crucial.

If possible, arrange a second holder for the loan. This is even easier for a couple in which they both buy a home together. If there is more than one holder, it is possible to dilute the risk. Assuming, for example, that one of the holders is unemployed, so there will always be a second to ensure the effort of the monthly payments, avoiding that it is in default.

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Last but not least, it should be noted that age counts. After 25 years is the best phase to apply for a housing loan, because before that usually there is less financial availability and more professional and salary instability.

What is the difference between fixed and variable rates?

In a housing loan, it is possible to choose the fixed interest rate or the variable rate.
In the case of the fixed-rate, it is agreed upon with the financial institution when applying for financing and remains constant throughout the loan, never changing.

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The variable rate, however, fluctuates according to an indexer, which means that it will change over the life of the loan, which will consequently cause the monthly installment to change. That is, if the value of the indexer increases, the applicable rate will also be higher, whereas if it goes down, the rate will also go down.

In the USA, the index that is normal which can be 3, 6 or 12 months, which is precisely the period after which the benefit is reviewed (after 3, 6 or 12 months).

What types of online mortgage loans in Georgia?

There are several purposes: acquisition (of permanent or secondary housing for rent or even destined to be a vacation home), credit for construction (in the case of the purchase of land that will serve to build a property), home exchange (for those who wish to exchange of house, but still has a housing loan to run) and transfer (which serves the purpose of changing bank to look for better terms).

It should be noted that different purposes are associated with different conditions. For example, in the case of the purchase of own permanent dwelling for rent, the term usually can not exceed 30 years and the spread is usually higher (which seems normal given the increased risk of having a second home loan and account that the age of the holders will be more advanced than at the time they bought the first residence).

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When buying a home, two insurances are mandatory. On the one hand, life insurance and, on the other hand, fire insurance, which can be extended to a multi-risk insurance-housing.

Fire insurance covers the risk of damage to property caused by fire and is compulsory in all horizontally owned buildings, both in the autonomous fraction and in all common parts of the building (garage, elevators and the like). This insurance also covers damage to property, whether due to smoke, heat, steam or explosion resulting from the fire. By extension, it is possible to extend the scope of coverages of this insurance to a multirisk-dwelling.

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Life insurance, which is compulsory for the subscription of a housing loan since 2008, provides for permanent death or disability of the insured and, in some cases, as additional cover, unemployment and accident cases.