Before applying for a loan you must know what the basic requirements are. You will save time and avoid problems.
Mike will summarize the general requirements for requesting a loan and then those that are requested for the most common types of credit.
The requirements in general are usually the following:
- Personal Documents:
Identity document (credential or CURP), receipt of services (water, electricity, internet, etc.), proof of fees or proof of salary.
- Personal characteristics:
Most financial institutions will review your credit history to know your profile and see if you will be a good payer or not.
It can be a person or an asset. Depending on the amount and type of credit, the guarantee may be worth more than the loan.
- Payment capacity and capital:
How much do you earn per month? How much have you earned in the past? What is your heritage? That is, how much money you have in your savings accounts, in investments or in assets. Financial institutions need to know this to know how much they can lend you.
The country’s economy also plays its role in loans. If the economy is in recession, banks will offer higher interest rates.
Then we have special requirements for some types of loan:
Requirements for personal loans
Although there are types of long and short term loans and they can vary a little depending on the financial institution, it is normal to ask for the following:
- Valid Identity Document
- Proof of address
- Proof of income
- Proof of Warranty:
If it is a person they will ask you to know the heritage of that person. If it is an asset, they will ask you for proof that you own that asset.
- Credit History:
Financial institutions will review this on their own.
Requirements for auto loans
As this is a longer-term loan, and generally of a larger amount, entities usually request the same documents as in a personal loan plus the following:
- Initial fee:
That is, the entities will not finance 100% of the purchase of the vehicle and will request a percentage of the value of the vehicle as a down payment. Usually it varies between 10 and 20%, but it varies according to the entity and your profile. In some very particular cases they finance the total purchase.
- Have a fixed income for a while:
That is, that you worked for a few months (or years) before you made the loan application.
Requirements for mortgage loans
This may be the most complicated credit to obtain, since the amount is usually much greater than that of the two previous loans.
In addition to the requirements for a personal loan, financial institutions may request the following:
- Initial fee:
It can be 10, 20 or 30%. In some cases the bank simply sets a loan limit and you should get the rest you need, even if it is more than half.
- Work seniority:
Of a year or more.
- Income documentation:
At least the last 3 months.
It depends on each financial entity.
- Copies of the property documents:
Public records in the name of the seller.
- Identity document of the seller:
Either a person or a company.
Finally, remember that although these are the most common documents you will need to request these types of loans, the lender can ask you for more or less documents.
Mike recommends having these documents at hand and in order when applying for any of these loans.