If you are single, but you have a stable partner with whom you already plan a future, surely you will have thought about buying a home. Among the options you have, are the joint mortgage loans, ideal for couples. But how do you improve the conditions in a shared mortgage loan as a couple? Then we indicate it.
How are credit conditions and risk related?
To understand what makes a mortgage loan as a couple advantageous, you must first understand a basic relationship. This is the one that exists between the credit conditions of a loan, and the risk that it implies for the financial institution, that you default on your payment. As long as the bank has more confidence that you will comply with the payment, credit conditions will improve.
For this reason, the institutions in question carefully evaluate your possible performance by honoring the payment of the credit.
They base their evaluation primarily on three sources
- Your income level, duly supported. As this is greater, the possibility that you have the money to pay the credit debt increases.
- Your current debts, since many debts imply that much of your income should be dedicated to honoring your payments.
- Your financial history, which is nothing other than how you have behaved when paying credits before.
How does a shared mortgage loan decrease the risk?
It’s simple, just as two heads think better than one, two people pay better than one. The reasoning of the financial institution is simple:
- An additional source of income, provided by your partner, implies a greater amount of income money, and increases the likelihood that you will pay.
- If either of them is temporarily or long without income, the other can answer for the joint payment.
For the above reasons, you can obtain better credit conditions in a joint mortgage loan with your partner. This conditioned on your partner having an appropriate credit history, if not, it is better not to try.