Portrait of a perfect mortgage borrower
Each bank draws a portrait of an ideal client, but there are not many such clients. However, it is still necessary to build on some criteria in issuing a mortgage loan, which we analyzed.
When filling out an application for a mortgage loan, a bank employee enters data that the information system processes; gender, age, income, work experience, education, family composition, property, credit history. This procedure is usually called in the banking environment scoring, it is fully automated and the calculation is carried out by a computer, therefore it cannot be said exactly what factors influence the positive response of the bank.
We analyzed the most important characteristics of various scoring systems of the largest banks in the mortgage lending sector, and here are the results:
Portrait of an ideal mortgage borrower
No matter how insulting it is for women, the banks prefer men. Like it or not, and men in many professions earn much more. In addition, male borrowers do not go on maternity leave and in this case, do not lose income.
Education is also an important factor affecting the positive response to the mortgage. Banks give preference to people with higher education and with career growth in the workbook. It is better if a potential borrower works in the last job for at least one year.
The composition of the family of the ideal borrower looks like; a working wife, one or two children for more than three years.
Undoubtedly, credit history has an impact on a positive response to a mortgage loan. It is good if the borrower has already taken loans and successfully paid for them, and any amount previously taken on credit is taken into account.