Property separation and obtaining a consolidation loan
Moving the subject of property separation in a credit blog does not seem to be obvious. In many cases, however, the mere fact of intercourse between spouses facilitates or maybe a reason for refusing a loan. So what is the impact of property separation on granting a loan? When is it good to sign it and when to avoid it? Property separation and obtaining a loan, we invite you to read.
What is property separation?
Property separation is a notarial deed signed between the spouses. It leads to the establishment of separate estates managed by the spouses. Whether the spouses decide to establish property separation depends on themselves, can be voluntary or judicial after fulfilling several conditions.
Does the conclusion of intercommunication between spouses influence subsequent decisions regarding obtaining a bank loan?
Establishing the division of property between spouses can have a dual impact on subsequent lending, in the article we will try to present the pros and cons of this state of affairs. When the decision on intercourse is justified, it will help us to get larger amounts of credit or cheaper offers, and when it will not work in plus.
Property separation – advantages in the process of applying for a bank loan
The best situation when establishing the separation of property is checked is the occurrence of credit problems of the spouse. Too high balance of the spouse’s loans, late repayments or debt collection may contribute to burdening us with his debts.
Another factor is the avoidance of responsibility for the spouse’s conduct. Separation establishes separate assets and one spouse is not responsible for the credit errors of the other.
An unquestionable advantage is an independence from your spouse. Your spouse’s consent is not required if you are applying for a cash or consolidation loan.
Defects in property separation when applying for a bank loan
The most frequently mentioned disadvantage is lower creditworthiness, the possibility of obtaining lower loan amounts. When the bank takes into account the income of two people, it is able to propose much larger amounts. An additional person also acts as a guarantor, additional security for loan repayment if one of them loses his job.
Property separation also means more documents when applying for a loan. The bank will require proof of this by providing the appropriate documentation.
Before applying for a bank loan, should you determine the precision?
A special separation claim before applying for a bank loan is never recommended. Or the other way round, establishing a property community. It’s much better to get advice from an experienced credit broker. Describing your and your spouse’s situation will help you find out how to get the best loan in the current situation.