How far back do lenders look at bank statements?

Bank statement bcp

Just as a private detective trawls through the lives of others to discover their way of life, risk analysts dive into the documents we give them to draw conclusions about our ability and intention to repay loans.

We are going to try to put ourselves in the shoes of the manager who has to decide whether to grant or deny us the loan we are requesting, based on the papers he has requested from us. We will try to understand how his analytical mind works.

The decision of Mario Draghi, president of the European Central Bank (ECB) to leave the official rates close to zero (not in vain the remuneration of the deposit facility – where banks can deposit their liquidity – is in negative) has a clear benefactor, everyone who has a variable interest rate mortgage and who reviews it at this time.

Perhaps one of the most informative data; with the bank statement the analyst can know how much we spend and on what. With the evaluation of our consumption patterns it is possible to infer our capacity to save and manage our personal finances.

How do banks know what loans I have

Knowing someone who works at a bank does not get you better terms. Banks take into account all the information they can access to analyze and evaluate the risk of granting a loan. Your friendship with a branch manager or the good relationship you have with the employees will not facilitate your access to financing, nor will they improve the conditions.

It is also important to know your income tax return because it allows you to get an overview of your income. Not only of those that you perceive through the salary, but if you have houses in rent or you receive some benefit, etc.

Simple notes and deeds. In case you have another property, the bank takes into account if it is free of charges, what you pay for it, how much you have left… everything is important to be able to make a study of your financial state. In case you are someone’s guarantor, the bank also reviews the status of the guarantor and with what you have guaranteed what type of loan.

How to get your bank statement

If you think you should have more control over the movements that occur in your account and you want to request your bank statement, we give you the guidelines you should follow to read and obtain this document quickly and safely.

A bank statement is a document that provides you with information about the balance movements you have had during a specific period of time: that is to say, the expenses you have incurred and the income you have received.

If you are wondering who can request a bank statement, you should know that this document is available to any bank account holder or authorized person. Traditionally, the bank statement was a document that banks sent to their customers by mail and with a certain frequency: usually once a month.

However, with the advance of digital banking, the most common thing is that you can consult it, at any time, through your bank’s website. What’s more, thanks to the banks’ digital platforms, most of them allow you to request a personalized bank statement of your account: that is, choosing the date for which you want to know the movements and even allowing you to choose the type of operation you want to see (for example, deposits, direct debit charges, etc.).

How to cheat the bank with a loan

To get financing for your home you must know the mortgage requirements and meet them all. Here we explain all the conditions so that you can get the mortgage that best suits your needs.

The first requirement to apply for a mortgage and get approved in 2022 is to have sufficient savings. At the moment, banks do not finance the entire price of the house (unless you hire a broker, buy one of their apartments or have an excellent profile), but they usually cover up to 80% of the purchase price or appraisal value. Consequently, you will need to have the remaining 20% to pay for the rest of the new property.

If what you need are second home mortgages for a holiday home, the requirements that the bank will put on you will be more demanding: more job stability, minimum income of around 2,500 euros, perhaps other extra guarantees, etc. This is due to the fact that, in times of economic difficulty, you stop paying these installments earlier than those of a regular home.