Apply for a mortgage is one of more complicated decisions For some people, not only because it represents a large investment of money, but also because it is a banking contract that keeps homeowners tied for many years.
Another of the big decisions is based on determining if you want to spend the rest of your life with your partner. And things get complicated when both decisions meet and you decide to buy a home when you are with a person with whom you have a future. In that case, is it better request a mortgage alone or request it together with your partner?
Requirements to apply for a mortgage
First of all, it is important know the requirements that banks usually take into account to be able to sign a mortgage, since these are common to those cases in which a person requests it or when it is done in a shared way.
- First of all, it is essential to have A stable job, preferably with an indefinite contract and with an antiquity of at least one year, with a corresponding salary.
- When it comes to freelancers, civil servants or interns, banks often request a experience of at least two years in your position, with demonstrable economic benefits.
- Should be have savings, about a 30% of total expenses, including the purchase price, as well as the expenses associated with the deed of sale of the home.
- In addition, the fee to be paid must not exceed 40% of the monthly income, either individually or common to the couple.
- It is also essential to have a good credit history, without any type of default. In addition, it is advisable to pay off other previous loans, since their validity reduces the possibilities of acceptance of the mortgage by banks.
These are the requirements common to all people, but you can calculate your mortgage online and know your personal conditions.
Is it better to ask for a mortgage alone or as a couple?
Now, is it a better option to ask for a mortgage alone or as a couple? The general answer is it depends, although there are advantages associated with applying for a shared mortgage.
When a single person requests a mortgage it is necessary that they offer the sufficient payment guarantees requested by the bank and that they comply with all the previously mentioned requirements without having to have the help of another person.
Brianda couple requests, probabilities of accepting the mortgage increase since banks usually consider the loan the safest. This is so for two simple reasons: on the one hand, by paying the debt divided between two people, the burden for each of them will be less and there will be more chances of it being paid without problem; In addition, if one of the holders fails in any of the payments, the other is in charge of covering their part. Which concludes that the mortgage loan has a lower risk of default than in cases in which it is requested individually.
Also noteworthy is the existence of different cases when applying for a shared mortgage, since, for banks, it is not the same that it is requested by a wedding couple than by a marriage or a de facto couple.
Marriage is often seen as a more organized and stable situation. Although the most important point is to determine, in the loan contract, if the property belongs to one or both of them and to sign before a notary public specifying the percentage that each one owns.
Advantages and disadvantages of signing a shared mortgage
La mortgage application on the part of a couple brings with it certain associated benefits:
- Greater ease of access to credit thanks to the lower risk of default.
- Greater debt capacity, which means that you can apply for a mortgage with a higher amount, which in turn offers the possibility of acquiring a more expensive home.
But there are also certain disadvantages, not only economically, but also emotionally, related to the monetary burden that carries its own risks.
In addition, it is important to mention that in the event that the couple separates, the procedures are not easy and it can take a lot of time and effort to solve it.
In case of separation, what happens to the mortgage?
It can be tricky, but there are different ways to fix it:
- First of all, one of the simplest is sell the house to a third person and with the money obtained, pay off the mortgage debt with the entity.
- The home can also be acquired by one of the parties, which means that the mortgage is only yours from the moment you acquire it.
- Alternatively extinguish the housing condominium. That is, one of the two people gives up his part of the house to the other.
- In either of the last two cases it is necessary to carry out a change in mortgage ownership, act that must be approved by the bank.
It also can cancel the shared mortgage and apply for a new one individually, but this entails higher expenses, since the cancellation involves the costs of the notary, the registry and certain commissions; while applying for a new mortgage carries the same costs as applying for it for the first time.
There are different options, with different advantages and disadvantages each of them. It is only necessary to analyze the situation of each specific case and decide if it is a better alternative to request a mortgage alone or as a couple.
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