Mortgages for the self-employed: what banks consider

Category: Mortgages

If you are self-employed, you will know very well that banks are more demanding when granting mortgages than with self-employed clients. What are the points on which you focus your attention the most? We detail them below:

1. Stable income: Banks value this very positively, since it allows them to predict that this income will continue to be maintained if they have done so with previously.

2. Age of the business: Having been in the market for years is another aspect that they view very favorably. They believe that it is synonymous with the ability to adapt to changes and, continuing with the previous point, stability.

3. Clean history of defaults: Not having missed payments on other mortgages or loans is another key factor. In addition, they usually study that the self-employed person is up to date with payments to clients, suppliers, etc.

4. Have savings: Something common in all mortgages is that banks do not usually offer more than 80%. For this reason, the more savings you have, the better.

On the other hand, like any other type of client, the entity will request all the necessary information before approving the operation:

• Accounting summary of the company: This is a document that specifies the accounting of the company or the self-employed activity. Includes the latest quarterly income tax and VAT models, the annual summary, etc.

• Tax information: You will also request the latest personal income tax return, which is the document that will allow you to corroborate the real income you have as a self-employed worker.

• Current work life report: Specifies the professional career and seniority of the work activity or business.

We hope we have helped you! And remember, if you are looking for the house of your dreams, contact us. The laHome Inmobiliaria team will find the one that best suits your needs.