What is required to buy a home?
How to enter the housing market?
Most people who need to buy a home must take out a loan, but what is required to get a loan?
If you feel the urge to get your own place, it takes a lot to make it happen without a loan! Documentation of income, sound finances and equity usually do the trick to secure the home loan.
A secured loan is a loan where the bank has security (collateral) in the home or car you are buying. This can be collateral in your own home, or collateral in your parents' home, if they act as guarantors. This means that the bank makes the guarantors responsible for repaying the debt if you do not pay.
Save equity in BSU home savings scheme for young people
The first thing you should think about is saving. To get a mortgage you need equity, usually at least 10% of the value of the property.
If someone wants to borrow money for a home, we ask: "How much of the money do you have yourself?" In other words: "How much equity do you have?"
All is not lost even if you don't have equity (see for example: Ung (Young Adults) Billion and Parental Assistance).
Money you expect to inherit, or salary coming in the summer, does not count as equity – yet.
BSU home savings scheme for young people
The best savings option we offer for you under 34 years is BSU home savings scheme for young people - boligsparing for ungdom.
Which Loan Suits You?
- We offer different types of loans for your needs. If you are buying alone and need to borrow less than 60% of the property's value, we can offer a Home equity credit line (HELOC).
- If you need to buy together with others, we can Joint Loan Be something for you.
- If you want predictability, Fixed-rate loan Or Combination Loan Suit.
- If you are under 34 years old, you can get Mortgage Ung (Young Adults).
Many people also wonder what home loan interest rate they will receive on their loan.
At DNB you have a personal Home loan interest rate. This means that the interest rate on your loan is adapted to both your finances and your life situation. That's why, for example, young home loan customers have their own favourable rate with us. We believe it's right that the loan interest rate reflects your unique situation – because no two financial situations are alike.
To find out which interest rate you will receive at DNB, you can submit an application for a pre-qualification letter or a mortgage offer. You will then receive an offer showing the interest rate offered specifically to you.
Pre-qualification letter
A pre-qualification letter, also known as a loan confirmation, is your ticket to the bidding round when you are house hunting.
With a pre-qualification letter in your pocket, you are ready to participate in bidding rounds – it shows how much you can borrow and purchase a new home for. The certificate gives you no commitments or obligations, and of course you do not need to borrow as much as you are approved for.
Apply to receive the financing certificate digitally – and all you need to do is give your consent when you receive a message from the bank.