It intends to apply for a home loan, has already checked the offer on the market and has obtained information about the conditions under which banks provide such loans. However, a question arose as to whether the bank will grant you a mortgage with no guarantor? In this article we demystify this doubt.
What do banks evaluate to grant a mortgage?
Before you ask yourself whether you will be able to get a homeowner loan, you should start by understanding what other financial institutions are considering in deciding whether or not to extend the loan.
When applying for a loan, banks take into consideration their income and professional stability, their credit history, their effort rate, the number of credit holders, the amount available for entry and even their history. its relationship with the institution.
It is also common for a guarantor to be required. This is a way for the bank to be cautious by ensuring that there is someone responsible for the debt if the customer defaults.
When is a guarantor requested?
A guarantor is a person who undertakes to take responsibility for another person’s debt if he or she cannot repay, representing a guarantee to financial institutions that normally ask a guarantor when they find that there is a risk of default by the customer.
The guarantor is called upon to repay the debt by default on a credit agreement. This represents a very common bond guarantee by banks in mortgage loans.
Some homeowners may also require guarantors in their lease agreements.
Banks ask a guarantor when they identify that there may be a risk of default on the part of the customer – either because they have a high effort rate, or have a poor financial situation, or because they have an irregular credit history.
If you find yourself in any of these situations, you are unlikely to be able to get a home loan without a guarantor.
Is it possible to stop being a guarantor?
Yes, but nevertheless, it is very uncommon for guarantors to be able to detach from credit. This would only be possible if the creditor and debtor agreed, but the creditor is unlikely to accept collateral reduction. In the vast majority of cases, the guarantor ends up with the debt.
Is it possible to get home loans without a guarantor?
We have good news: it is possible to get home loans without a guarantor, because the requirement of a guarantor depends on the risk that financial institutions place on the credit agreement.
If you have always been a loyal customer, you have a low effort rate and a stable working situation, showing that you are able to bear the mortgage loan burden on your own, the bank can perfectly afford you the unsecured home loan.
You can consult your Credit Responsibility Map to find out if you have a good credit history so that you feel safe to proceed with your non-guarantor home loan application.
If your map contains less favorable information, then you should take action to settle your debts or other defaults.
We remind you that it is always important to evaluate your financial situation and to analyze if you have the ability to repay a credit before placing the order.
It should also be noted that the banks’ approval criteria, although following specific models and procedures, are seen on a case-by-case basis, ie they may vary from institution to institution depending on the customer concerned.