Can You Get a Mortgage Without a Job?
15 March, 2023 | Alba Tebar
If you are unemployed or a student with no job, you might wonder if getting a mortgage without a job is possible. Just for you to know and to be completely chill: the quick answer is yes. However, we must admit this is not easy to obtain, because banks are always looking for economically stable customers and an unemployed person is not always the best option for them.
Anyways, you can obtain your mortgage without a job: you’ll only need to satisfy some alternative lender requirements. And to do so, Hipotecasplus is here to help you. We have been working in this field for a lot of years, so we know exactly which requirements do banks ask for in terms of allowing new mortgages. In that sense, we can advise you with everything you’ll be asked for, as well as perfectly prepare you to have everything under control.
In addition, we want to share with you all this article to show you which different options you have in order to get a mortgage even though you have no job. For example, people who is retired, divorced or with significant bank investments get loans every day. Let’s explore how do they do that in Spain!
How to get the mortgage?
First of all, and as we have previously mentioned, applying for a mortgage without a fixed contract job is difficult, but not impossible. The only obstacle here is that banks are going to be much more strict with you than if you had a indefinite job.
In that sense, bank entities will pay special attention to that aspects in order to give you the needed mortgage:
- The total amount of money you receive on a regular basis, such as salary or income for investments, is the first thing banks will ask for before giving you any mortgage offer. In that sense, it is true that your income might not depend on your salary, but it is an important part. That’s why banks always prefer a customer who has one fix job. Nevertheless, as long as you can prove you are receiving a regular amount of money every month, it should be enough to prove you have a good income health.
Remember you have some alternate sources of income that lenders may consider as they are about to say the final “yes” or “no” to your mortgage. This other types of economic resources that are also valid are, among others:
- Retirement income
- Invested income
- Rental property income
- Divided payments
- Unemployment benefit
- Child support payments
- Absence of debt and expenses. When talking about mortgage, debts are a no-no for banks. From an economic perspective, debts or expenses define you as weak profile, so banks won’t be sure to bet for you and might prefer to not give you the mortgage. Furthermore, when taking about expenses, you will need to have them all controlled and make sure you can afford all of them.
- Some savings. Bank of Spain suggests that the ideal when requesting a mortgage without having a fixed contract is to have a little more than 30% of the purchase value that you are supposed to have. By this way, you will be able to counter the money you’re not receiving monthly by a pre-saved amount of money which you will have 100% for sure to pay the bills.
- Credit profile. Finally, it is also important to keep in mind that banks give a big importance to your credit profile. Your credit score and the amount of money of debt you owe will directly influence their decision to give you or not that mortgage you really want to get.
Moreover, in order to increase the chances you might have to obtain a mortgage, it is key to have an endorsement, which will answer for you when you have a debt, These endorsements play the role of a support network in case you fall down. In a word, they mean security to a bank. In case of default, they have the security to have some money -in the form of property- to pay back whatever you have not already paid.
This is the reason why banks love to have endorsements when granting mortgage, because they will feel much more confident about your commitment with the mortgage and the whole process.
Another option you can try is to have another property, free of charges, and mortgage it to it. With that money you obtain, bank entities might give you the mortgage. But the problem here is that you’ll need to convince the bank that you can repay the mortgage loan.
In that aspect, as in many others regarding this topic, in Hipotecasplus we can help you. We will talk directly with banks and negotiate with them your conditions and needs, so they do not worry about your economic profile and finally grant to you your dreamed mortgage.
Certainly, it is not easy to find a good broker that will guide you and give you honest advice regarding mortgages. However, in Hipotecasplus you’ll find a good ally. So, remember, you can always ask our team for any questions you might have about it, with no commitment. We would be more than happy to help you get your dreamed mortgage, even though you have no job! Trust in us and you will not regret it! For more info, contact with our offices here.