To get a loan, we must prove that we earn money.
How else would we be able to return the funds to the company that lends them to us? Even when we are interested in real estate loans , we usually carry out basic checks on the borrower by checking his ID and at least one documented source of income. Today we will look at what income we can present to the lending company to increase its credibility.
An employment contract is an obvious example that makes no sense to bend over. Each of us is well aware that it allows you to get not only private loans against real estate , but also a bank loan. What about civil law contracts, such as a work or commission contract? Some loan companies accept such sources of income, but the condition that income from these contracts appear regularly. If we did a work once a year, it is definitely not a reliable source of income. However, if every month we work on a mandate contract, then the lender knows that we have the option to repay the liability.
Another non-standard example is rental income. This will mainly apply to people investing in real estate, who earn on renting apartments, houses or plots. They may want a real estate loan in order to make another investment. If they have documented rental income, there will be no problem getting a loan. Moreover, if they are high enough, such a person can even apply for a bank loan.
Let’s not forget about people who receive social assistance or alimony. These are income received every month, sometimes not very high, but nevertheless giving grounds to believe that the borrower will be able to repay the loan installments. In recent years, following the introduction of 500+, some companies providing secured loans also accept income from this. This is good information for families with more than one child who need a quick non-bank loan.
Finally, the last source of income we will pay attention to is pensions. Documenting this income is easy, but in this case there is one more condition. Many companies do not grant loans to people over the age of 75. So what about older people? For them, the best solution will be loans against a car or flat.