If you are thinking of applying for a personal credit, one of the options you have is to use your home as collateral. In that case, it is good that you know what are the requirements to mortgage a house.
Available personal credit
A freely available personal credit is one whose capital you can use as you wish. That is, there is no specific limitation of use, as if it exists in the loans granted for real estate purchases. It is possible that you obtain a credit with that characteristic if you use your own property as a guarantee of payment.
Currently, there are many people who are opting for that type of credit, placing their homes as collateral. This operation is commonly known as home mortgage, although the name of the loan is a personal loan with mortgage guarantee.
Keep in mind that when placing your home under warranty there is a risk of losing it, if you default on your payments. Therefore, you should carefully analyze whether this option is the most convenient for your family.
What are the requirements to mortgage a house?
The general requirements required to apply for a personal loan with mortgage guarantee are the following:
- The home you give as a guarantee must be your property.
- It must be completed; that is, it cannot be under construction.
- The home that you place under guarantee must have its Factory Declaration and Independence, duly registered in the public registry.
- Of course, such housing cannot be given as collateral in other current loans.
- It is necessary that you acquire life insurance debtors.
Then, each financial institution places a series of particular additional requirements, according to its own credit policies. Among the factors considered, are:
- Age: There is a minimum and a maximum age limit at the time of application. There is also a maximum age limit at the time of completing the credit payment.
- Income: A minimum income is established, both for wage earners and non-wage earners.
- Home insurance: Apart from debtor life insurance., you must insure the home. In some cases, against fire; in others, at full risk.