Before applying for a loan, the experts’ recommendation is to review and compare the interest rate, the Total Annual Cost (CAT), the monthly payments or the term that the institutions offer as part of their financing products.
Although these aspects are fundamental when requesting a loan, there are other types of conditions that are also important to analyze carefully, especially when you are looking to leave your home as collateral.
A liquidity credit with mortgage guarantee is different from the rest of the loans, to request it it is necessary that the applicant is the owner of the property, which will act as a guarantee of payment in case of default.
As it is a real estate issue, other aspects to take into account may be some conditions imposed by the bank related to the property, while on the applicant’s side the state of conservation in which the property is located may influence.
Among the main conditions that financial institutions put when requesting this type of financing is that the property is not taxed, that it has all the documentation in order and that the person is the owner of the property, if any of the three fails, they will hardly be able to authorize it, said Sergio Raimond Kedilha, general manager of subsidiaries of the luxury lending company LQUID Luxury Liquidity.
It should also be considered that this credit is not granted for the entire value of the property, the entities only grant between 50 and 70% of the total price. At this point, the director pointed out that it is important to compare who is lending him more: if a lower amount is requested than the value of the property there will be no problem, but there will be a problem when he seeks to obtain financing greater than that offered.
“If a person requires 500,000 pesos and his home has a value of three million pesos, there is no problem, what we do not want is precisely to over-indebt the client. What is sought is to give the client liquidity so that he can use the credit as soon as possible, “he explained.
Related to the issue of the value of the home, some financial institutions put as a condition that the property has a value above the financing.
According to the financial services comparator Bancompara.mx, some banks request that the property have a minimum value between 1 million and 2 million pesos, but that condition will depend on the requirements set by the institution.
In the notarial part, the main condition is that the deeds are released and registered in the Public Property Registry. In addition to this, all utility payments must be current; in this way the bank ensures that there is no legal problem.
For its part, BBVA pointed out that before requesting this financing it is necessary to check if the institution makes extra charges or commissions, such as for the opening of the loan, the collection of some insurance and even if it will charge for the appraisal that determines the value of the property.
Location and conditions of the property, have
As it is a real estate issue, the conditions of the property directly influence the value of what the institution can lend, hence the importance of being in good condition and habitable.
According to the director of LQUID Luxury Liquidity; the age, the state of conservation and the finishes are taken into account at the time of making the appraisal that determines the value of the loan that the institution can grant you in financing.
In the same way, the neighborhood, area and location of the property are also directly linked to the value of the property, factors that can increase the loan amount that is required.
“The better value the property has, the higher you can get a loan. The square meters of land, square meters of construction are measured; how much is the square meter in the area, how old is the construction, without a doubt these are elements that determine the value of the property and how much the bank could lend it, “said the specialist.
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