Experts note that today in Latvia one may observe a rapid growth in mortgage requests. The fact is that during the pandemic many citizens who previously rented housing decided to acquire their own apartment or house. Considering that the cost of real estate is now increasing actively, some buyers make a decision on obtaining a mortgage.
What to look for when applying for a mortgage?
Before taking out a loan for real estate experts recommend evaluating your earnings. Under the terms of most banks one will have to pay about 35-40% of income, if it is average by the standards of the country. So if a person earns about a thousand euros he will have to pay 300-400 euros towards the loan.
One also needs to take into account the following conditions:
It is also important to remember that before issuing a loan banks carefully consider the credit history of each potential borrower. Therefore, before the mortgage is issued, one should try to close all current loans and get rid of other debts - the cleaner the credit history is, the more chances one has to get a mortgage.