Debt capacity
Once the decision, know that despite the best efforts to provide the effort needed to go to the bank that the borrower owes, no institution is likely to provide capital without having heard of debt capacity of the borrower.
Usually banks or financial institution who deigns to grant a loan, debt capacity allows up to 33% of the income of the applicant. The basis of calculation is of course derived from all other charges which may weigh on income. So are the cases of repayment of previous loans or annuity to a person.
If a person earns € 1,000 and a loan relieves current income of € 100, its debt capacity will be 300 €, 33% from 1000 to 100 €
The concept of remaining life
Based on income of the borrower, banks can accept, however, go beyond the limits of 33% debt ratioIndeed, another criterion is taken into account by banks in granting loans, the "left to live"In practice, this concept takes into account the amount available to the borrower once the monthly income will be removed. The difference will then be able to provide the expenses of daily living such as food, accommodation and electricity. In practice if the income of the borrower are important, it is likely that the bank grants him a debt ratio above 40% or 45%.
It is well recognized that the borrower makes a personal share in the credit. The personal contribution is not mandatory. If the investor has such a possibility, it will play in his favor as a decisive element in the negotiations. As loans involve a number of costs (fees, notary ...), a large majority of banks will leave them at the expense of the investor even though the personal contribution is not mandatory. How to find the credit? To find the best credit, only two options available to the borrower. Is it performs the exploration and negotiations in the various financial institutions, or consult with a broker.
If the first method seems tedious, it can nevertheless benefit from a wide selection. If the person has some knowledge of credit, this solution is adequate. However, to minimize the constraints of the process, the second solution is better. The broker will analyze the profile and needs of the borrower and conduct its research in this direction. The expertise and know-how will benefit the broker when the borrower. |
