I have already taken out a loan. Can I still buy a property?
In today's edition of our video blog you will learn if you have already taken out a loan, but can still buy a property.
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Frequently, capital investors ask themselves
We answer these and many other questions in our video blog editions.
Here is the transcript of episode 27 to read:
It matters a lot what kind of loan you have taken out. Whether it is a normal installment loan or whether you are financing a car, many people have such loans. But what if you want to buy a rented property and the financing fails? That could be a problem. Imagine that you earn a net monthly income of €2,500, but have put obstacles in your own way by taking out an excessive installment loan of €1,000 for consumer debt. In this case, it will be difficult to gain the trust of a bank and obtain money for a property.
A bank will not be willing to provide you with financial assistance to buy real estate if your financial situation is not in line. It simply does not work to bail out someone who is already in debt, even by buying a property. It is not a realistic solution. Therefore, it is important that you maintain a conscientious approach to your finances. If you already have real estate loans because you already own several properties, rest assured that it usually gets easier.
In case of doubt, the more properties you already own and the more mortgages you already have, the higher your income will be. This pleases the banks because you are more broadly positioned and not solely dependent on your net income. So it is an individual matter. My advice to you would be to just have it checked. When we talk about buying a property, I will always talk to an independent real estate financier and get him on board.
A good financing is crucial to get a favorable interest rate and an attractive offer. Therefore, we ask the question: Does a property fit your individual situation? Does everything work smoothly? If the answer is positive, we will certainly find the right property for you, provided you seek professional advice and make a professional product selection.
Credit, installment loan, rented property, net income, bank trust, real estate loans, real estate financier