The maximum loan amount that the bank will be willing to grant you depends on your income and the installments of the potential mortgage. The higher your earnings and lower installment, the more money you can borrow. This means that you can improve your credit standing by increasing your income or lowering the installment amount.
Your situation will be improved not only by an additional source of income, but also by joining the loan with a co-applicant. He doesn’t have to be related to you, but it’s important that he has a stable income and a good credit history. The lender will check it as carefully as you do. If he has a bad credit history, high debt or several dependents, joining him in the application may even harm you.
Increase own contribution
When applying for a mortgage, you must make an own contribution of at least 20% of the value of the real estate being credited. By purchasing a low own contribution insurance, you can have a 10% own contribution. If you can, provide a higher amount that will reduce the size of the loan and thus the amount of monthly installments.
Choosing a long loan period
The easiest way to increase your creditworthiness will be for you to choose the longest possible loan period. You can take a mortgage for up to 35 years, but only if the final installment is paid before you are 70 (75 or 80 – depending on the bank). If you are over forty, submit an application to an institution that applies the 80-year age limit and will allow you to benefit from the maximum funding period.
As a pensioner, it will be difficult for you to get a mortgage for several hundred thousand zlotys. You have a good chance for a positive credit decision when you need a relatively small amount to finance the purchase of an apartment, and you can take advantage of a long loan period. For example, with a 30-year loan of $ 50,000, your monthly installments would be just over $ 200. In this case, an income of just over $ 2,000, assuming no other loan commitments and dependents, could open your way to a home loan.