The purchase of a home is usually the most valuable transaction that a person makes throughout his life so it is vital to choose the mortgage that best suits your needs.
That is why we will begin with the ability to pay, that is, we will have to make a balance of the income and monthly expenses to be able to calculate if we have sufficient payment capacity to face the payment of the mortgage loan.
Financial institutions also value aspects
In this sense, financial institutions also value aspects such as type of employment contract, seniority in position, marital status, number of family members, etc.
The next step will be the appraisal of the property’s property to determine the value and check if it corresponds to the sale price.
Then you must go to the Land Registry in search of all the possible information of the property to check if it is free of charges.
We continue with the choice of the mortgage repayment term
That is, the total repayment time of the borrowed money that can be assumed. In this sense, you must choose between higher fees for a shorter period of time or otherwise lower fees for a longer period of time.
Another point to consider are the commissions and expenses that come with signing a mortgage, since both the opening, the modification of contracts or for example the early cancellation have different costs between banks.
The established clauses are of vital importance because they must establish aspects as fundamental as the applicable interest rate or the possible variation that this may suffer.
At the time of the formalization of the contract
The deed must be made before a notary and registered in the Property Registry.
As we see, the hiring of a mortgage involves a series of steps with their respective obligations and rights that must be known in detail. Therefore, before signing, find out about all the aspects that are involved.
And if you need any financial help, remember that in Good Finance we have a comparator of financial products that will help you always choose the best conditions for your personalized case.