How to get a Home loan?

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What kind of loans is most popular? These are definitely instant credits. But that should not be surprising. Quick credits are issued in small amounts and with very few restrictions. Because of their high-interest rates, lenders are not afraid to give them to even riskier groups.

Home loans are the second most popular loan category

Home loans are the second most popular loan category

Despite the fact that the average home loan is at least USD 100,000 and this value is only growing, its popularity is not diminishing. On the contrary, as the middle class grows, so does the demand for mortgage loans.

There is nothing to be desired: people need to live somewhere. At some point, people are just calculating that renting a home in the end result is more expensive than buying a home. And since housing is certainly not the cheapest of human needs, it needs a loan. That’s why mortgage loans are so popular as more and more people start to think about their costs and alternatives.

But surely not everyone can get a home loan

But surely not everyone can get a home loan

The reason for this is very simple: Each home loan requires a down payment of up to 10% of the total loan amount. Therefore, calculating the exact amount claimed is very simple: if the value of the property you want to buy is $ 100,000, you will have to have at least $ 10,000 and give it to the bank.

Otherwise, you will not have access to the home loan. Such a loan is not instant credit and therefore requires much greater precaution from the lender. For example, losing a $ 500 Quick Credit is one (usually it is still recovered from bailiffs, sooner or later). But losing a $ 100,000 loan is another matter. Losing a loan of this value may not help even the best lawyers and bailiffs, as a person in life may simply not earn that income.

Now, it should be clear why only the middle class is growing demand for mortgage loans: only such people can accumulate the required amount of $ 10,000 or more before taking out the loan they want. As a result, an increasing proportion of people applying for a home loan are expatriates working abroad. In most cases, loans for those working abroad are specifically for home purchase. It is much easier for emigrants to raise the necessary authorized capital to obtain a loan because their salaries are significantly higher than those of citizens living in Lithuania.

There has even been a small scandal that has been extinguished


By the law that loans to foreign workers will no longer be granted, as property prices are raised too quickly and too sharply. If anyone could get a home loan, then house prices would jump up even faster than in the pre-crisis years. Back then, mortgages were easier than ever before, leading to a real estate (RE) boom and then a crisis.

In summary, to qualify for a home loan, you must meet all the requirements (which are more than regular instant credit) and have a down payment of about 10% of the total value of the property you want to purchase. Also, remember that a home loan is a long-term commitment that will haunt you for at least several decades of your life. So be sure you want to commit for such a long time.