Creditworthiness is one of the basic and most important parameters to be determined by the client when applying for a mortgage, cash or investment loan. This parameter is particularly important at the present time, when subsequent recommendations of financial market regulators systematically set a higher bar for a potential borrower.
When applying for a loan
both at the planning and initial implementation stages, we can use our loan calculator . It is a relatively easy and quick tool to use, thanks to which we can pre-figure out what amount of credit we can afford. Woe to those who would like to make final decisions on this basis, e.g. buying a flat or building a house. Why? Internet calculators are just a hint, a simplification. Most often they rely only on basic data such as: the age of borrowers, income, purchase amount, loan amount and the amount of other charges.
Each of the banks granting mortgage loans has its own unique method of calculating creditworthiness, and each of them approaches the amount of income obtained by the Customer as well as the manner and time of obtaining it a little differently. This means that the same customer will have different maximum creditworthiness in virtually every bank. At the same time, two people with identical income may have a completely different ability because they obtain this income in a different way. If we add to this the differentiation of creditworthiness due to age, other obligations and family situation, which parameters are also adopted in banks in a completely different way, we have a picture that tells us one thing: only checking creditworthiness by a good credit advisor based on calculations a professional banking calculator will give us an accurate picture of how much creditworthiness we actually have at a given moment and at a particular bank.
Online credit calculator
Of course, regardless of whether we want to know only about our ability on an online calculator or more specifically with a financial advisor, we need to have some knowledge about our earnings, family situation and credit intentions. If we provide income, it should be as close as possible to the actual state. We cannot overstate our income with a consultant. We should also honestly acknowledge all obligations and dependents we have. Hiding or distorting such information causes that, firstly, the simulation carried out, whether on an online calculator or a more professional consultant will be incorrect, and secondly by entering such information, e.g. in a credit application, we expose ourselves to criminal liability and damages towards the bank and the decision negative as to the possibility of granting a loan. We should have appropriate knowledge, preferably supported by documents not only as to the amount of income, but also the time of its receipt, possible breaks in obtaining it, the duration of employment contracts, possible periods of deregistration of economic activity.
Certainly, when planning to take a mortgage, we should check as soon as possible, regardless of whether we already have the property selected, on our online loan calculator, even before visiting a financial advisor. However, you should treat the result of such simulation as a great simplification and do not make binding decisions based only on its result.
We should always entrust such a task to a professional credit advisor.