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Save, see different houses, choose the definitive one, compare mortgages and think about which one best suits your needs. The steps to take before applying for a mortgage are numerous, and prospective homeowners may find themselves with rocks along the way. The financial comparator Helpmycash.com has a complete guide detailing the different phases to go through to apply for a mortgage, from visiting the office to signing before a notary, as well as various tips to get the most convenient loan.
Compare at least three offers
There are many fish in the sea. Therefore, Helpmycash.com advises to compare the mortgage loans offered by different entities, at least three, and not keep the first one or the one offered by your bank. This procedure can be done by consulting the web pages of different entities (online banks tend to have more advantageous mortgages than traditional banks), in person or using a mortgage comparator like Helpmycash.com.
Order and read the FIPRE
When requesting information about the mortgages offered by an entity, you must also request the Pre-contractual Information Sheet (FIPRE). In this document, the generic conditions of each mortgage. It is very important to review the FIPRE before processing the formal application, as it will allow you to compare the different offers more easily. Helpmycash.com emphasizes that there are four main points to look at:
–Capital and term: the amount of money the bank will lend you and the time it will give you to pay it back. Banks usually lend up to 80% of what the house costs you. Thus, It is advisable to have the remaining 20% saved plus an additional 10-12% to pay expenses deed of mortgage and sale.
–The interest rate: the interest applied on the mortgage, whether fixed or variable, and the Annual Equivalent Rate (APR).
–The commissions: the charges that are charged for opening (the opening commissions will be considered null if they are charged without justification, that is, for services not provided, according to the Court of Justice of the European Union), early amortization, subrogation, novation or conversion to fixed rate.
–Linked / Combination Products: the products that require you to contract or that are offered to reduce the applied interest. For example, damage insurance, life or payment protection insurance, multi-risk home insurance and others.
Fixed or variable mortgage: which one do I choose?
The choice will depend on your needs. With a fixed-rate mortgage you know exactly what you are going to pay each month until the loan ends, but uA variable can come out cheaper if the Euribor stays low, as has happened for several months in which it remains in negative territory. This translates into lower mortgage interest rates and should even lead to banks paying customers for having contracted mortgages. However, this is not fulfilled and the entities are applying the interest rate at 0%.
Nothing is non-negotiable
The commissions, the link through other products (insurance, pension plans, etc.) or the interest applied are negotiable. Try to get the best conditions and look at the price of insurance, these can be excessively expensive.
What documentation must be presented?
To submit the request to the bank and have it evaluate your profile, you must attach the following documents: a fotocopia de su DAYS o NO; a photocopy of your Laboral life; his last statement of income; proof of income (latest payrolls for employees, pensions for pensioners and payments to Social Security for self-employed); Bank statements of the last months to verify your income and usual expenses; loan receipts if you have any; the rental contract if you are leasing; proof of other income or income and the appraisal of the home.
How long does the bank take to process the request?
The Risk Department usually takes a few two weeks to approve or deny a request. You can take advantage of this period to present the same documentation in other entities to see what if they make you other alternative offers, explains the comparator. Remember that until the contract is signed, nothing is closed and you can back out at any time.
Understand the offer and the fine print
Once the application is approved, the bank will make a personalized offer. By law, this must arrive 10 days before signing and it must have the following documentation: the European Standard Information Sheet (FEIN); the Standardized Warning Sheet (FiAE); copy of the contract; information on incorporation expenses; the price of the installments in various scenarios and the insurance conditions. It is essential to read each and every one of the clauses of your future mortgage and make sure you “understand them correctly”, remember the financial comparator.
The financial comparator also has another guide in which he explains relevant points such as: what information should a FIPRE contain; what do certain technicalities mean; how much they can charge you in commissions and other expenses, how certain clauses are regulated and what are your rights and obligations when signing a mortgage.
Pass the exam before a notary
Before the day of the signature, the notary will “explain the conditions for free” to you, resolve your doubts and make you “an exam to make sure”, he explains. Helpmycash.com. If it does not pass, the notary will not be able to authorize the deed of the mortgage loan. In addition, it is important to know that you will have the right to choose a notary.
Now is the time to sign
The last step is to go to the notary at sign the mortgage deed together with the bank’s attorney-in-fact. That same day the deed of sale is also signed. “But to finish closing the operation, the bank’s management will still have to pay the corresponding taxes to the Treasury and go to the registry to register the mortgage and the new property on the property; a process that usually takes about two months ”, emphasizes Helpmycash.com.
How long has it been from inception to signing?
Habitually, between one and two months. It is important to take this into account before agreeing to reserve the purchase with the seller.
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