There are many times when, due to multiple circumstances, we cannot cope with those personal expenses that involve buying a house, a car, starting a business or a number of similar situations. Applying for a loan (either personal or mortgage) is not a complicated task, but it is a decision that requires commitment, responsibility and awareness of debt, however much it seems to be a cocktail full of simple conditions and easily comparable requirements.
If we want to request a loan that adapts to our needs, we should not only compare the loans offered by financial institutions, we must also establish guidelines in the segmentation of our payments, understand the bases of indebtedness and be aware of the conditions preceding the concession. Knowing this, the best thing to do in these cases is to get ahead of the events and know what type of documentation will be required before formalizing this request, in this way we will avoid setbacks and unnecessary delays.
Select a suitable loan model
If you are convinced of requesting a loan from the bank, even if it is elementary, you should be aware of all the options that financial companies have, although the highest percentages always abound in so-called mortgage loans or personal loans. If you want to buy a home (either first or second home) and the repayment installments exceed 20 years depending on the interest, you certainly need a mortgage loan.
Documentation and requirements
If you have already opted for the most suitable loan model for your needs, it is time to know what documentation and requirements you need for the financial or banking entity to grant you one. Assuming you are of legal age with a Spanish DNI, passport or driving license, in addition to having a bank account number, you should be aware of the following conditions.
- Explain in detail the exact amount of the loan you need, as well as the cause and the reasons why you need to invest or allocate the money.
- Photocopy of the tax declaration (IRPF).
- Not be included in any list of debtors such as ASNEF or RAI.
- Even with second loans, you must prove solvency.
It is essential to have job stability within our family environment, demonstrating a continuous work life of more than 2-3 years with a work contract. Generally, banks value more those employees or employees with a fixed contract (established in the same company) than employees with a temporary contract or self-employed workers.
Some entities can go much further analyzing the stability of the company where the contractor works, observing its duration and promotion over the years. In this way, they make sure to clear any doubt of solvency and commitment.
More to think about
The maximum indebtedness capacity of a person is given by their monthly net payroll and the number of annual extra payments. Banks have the final say in granting loans, so they do not allow an applicant to borrow if the installments of all their loans exceed 40% of their income (some entities allow even less, up to 30%).
In the mediation of a personal loan the banks do not usually ask for someone to guarantee the contracting party, so that, in case of defaulting on the debt demanded by the entity, the interested party responds alone with all the income, rights, present and future assets.
In case of applying for a mortgage loan, the entity may require a personal independent guarantor (a legal entity that agrees to pay the debt in case of default of the initial debtor) or bank, a second bank that is committed to deal with the debt in case of non-payment.
In case of being a self-employed worker, you will need to show a document that indicates your registration in the self-employed, the fee you pay to the social security or your last VAT declaration. If you work as an employee, it will be enough to show your last 2 or 3 payrolls.
Sometimes, banks can advise (leaving aside the remitting obligations) some other conditions to be taken into account depending on the destination of the loan and the needs of the contracting party. Also, they can request a direct debit of your payroll and receipts, a contract for the Amortization insurance, a pension plan, a car insurance or a home insurance.