If you have decided to buy a house, applying for a loan is probably your next step. Keep in mind that to obtain a loan it is necessary that you know what is really what you can pay, that is to say, what is your capacity of indebtedness. Not only because it will allow you to recognize how much money you have and how much you can deliver without risking your financial integrity, but because it will also be a factor that financial institutions will not overlook.
If you are meticulous with the control and management of your finances, analyzing your creditworthiness should not be a difficult task. However, it is important that you understand the calculations you should do well. Therefore, below, we explain how to analyze your debt capacity:
The first thing to consider is the amount of money you will have to pay in each installment. Experts advise that it does not exceed 40% of your monthly income and banks generally monitor it in this way. So when choosing a house, you have to pay close attention to what the total amount of your income is and what your fixed expenses are.
As Juan Carlos Ramírez, manager of Solutions Development & Digital Transformation of BBVA Continental, points out for the website of this bank, "the advisable thing is not to exceed 40% of the monthly net income in covering financial obligations. For example, if a person receives a monthly salary of 2,000 euros and has a mortgage loan of 100,000 euros, he should allocate maximum 800 euros to pay that debt per month. That figure is their debt capacity. "
The formula that Ramírez proposes to calculate it is the following:
Indebtedness Capacity = (Monthly Income - Fixed Expenses) x 0.40
This will let you know how much money you can allocate monthly for these payments.
Other considerations:
It is important to remember that in addition to this, banks can take into account some other aspects, such as whether or not you are in a register of defaulters, if the documents of the property are in order, and even if you have good health.