Getting a home mostly involves applying for a mortgage loan from the bank. Therefore, when negotiating the granting of money with your bank, you must always take into account some interesting advice.
Also known as a mortgage loan, it is a type of contract that is made between a person or several people who wish to acquire a property, together with a bank. Mortgages are processes that, when negotiated, usually take some time.
Is it Difficult to Get a Mortgage?
Various circumstances must be taken into account. 40 or 50 years ago, the price of housing was very different. Currently, the needs of families are different, but salaries are also quite different and the price of housing has grown exponentially.
As a general rule, high salaries are considered as the first requirement to be able to face the payment of the mortgage loan with certain guarantees. After the disastrous experience derived from real estate, the requirements of credit institutions are usually quite high.
On the other hand, temporary employment in a country is still a very high inconvenience when it comes to getting a mortgage. If you do not have a fixed contract, granting a mortgage is often complicated.
Generally, the figure of a guarantor must be used so that the bank has a guarantee of collection in case of problems. But these circumstances should not discourage you, getting a mortgage is always possible.
Agricultural mortgages gives you 5 tips to make the granting of your mortgage loan a reality. Avoid unnecessary expenses and you can fulfil your dream of owning your property.
The 5 Basic Tricks to Get Your Mortgage
1. Have a Good Track Record
Let there be no doubt that when you go to apply for a mortgage from a bank, it has to make sure that you are a good person.
If the bank finds debts, pending payments or your financial situation is not very healthy, the chances of getting a good mortgage will be reduced.
Requesting a mortgage is not something that is done overnight. Try to update your financial situation. If you have some savings, use them to eliminate debt.
2. Acceptable Income
This is one of the starting points to get a yes from your bank. A temporary contract or income that does not allow the mortgage payment to be covered with a guarantee will put an end to your illusions.
As mentioned in the previous point, the application for a mortgage is not done overnight, so it is time to get going to try to improve your financial situation.
Therefore, if you have a medium-term interest in owning a property, you must do everything possible to improve your income.
If this is not possible, it is essential that you start looking for another job with better conditions. Be careful in this regard, since banks usually look at the age of your employment contract.
But if you don’t want to risk it, you can increase your income by developing another part-time job or putting your skills to work.
3. Know Where to Look
The banking entities must have taken over a large number of properties. These were the result of mortgages that were unpaid. It may be a good idea to start looking for your home within the catalogue that banks have.
In addition, the possibility of obtaining 100% financing for that home is more than likely. For this reason, the first recommendation is to visit your bank and find out what properties are available to you.
The conditions will probably be more advantageous, although it has the drawback of having a limited offer. In any case, it is not known if the home you are looking for is within what the bank has in its possession.
In short, these entities are not interested in having this type of liability in their portfolio.
4. Make a Good Comparison
The usual thing is that you start by consulting the mortgage offers that are in your bank. However, it may not be the best you can access.
A very common mistake is to focus exclusively on the interest rate, something that has a lot to do with the final price of what is going to be paid, but it is not entirely the only thing to look at. Assessing the link cost is a good starting point.
In addition, you will have to take a good tour of all possible entities. Perhaps it is even convenient for you to change banks, even if it is somewhat cumbersome. Changing the direct debits of the receipts will not take so long either, and to direct the payroll in the new entity, you only have to communicate it in your work centre.
Keep in mind that a mortgage is always a long-term relationship, but choosing the most suitable one can save you a good amount of money.
Your bank may want to sit down to negotiate the conditions if it knows your wishes to contract the mortgage with another entity. Never turn a deaf ear, as they are probably not interested in losing you as a customer.
5. The Help of a Guarantor
Having the figure of a guarantor is always a good decision when it comes to getting your mortgage.
The bank will know that there is a guarantee of payment (SCCU no down payment mortgage) present and that in the event that the instalments cannot be paid, something not desirable, it has something to hold on to.
To learn more about the figure of the guarantor, it is recommended that you look at what a guarantee is here. A guarantor can be anyone, it does not have to be a family member.
Extra Tip: Take Your Time and Get Advice
Applying for your mortgage loan will take time, so don’t be in a hurry. It could work against you and make you make wrong decisions. For example, not carefully reading mortgage proposals and all their fine print.
There are a lot of commissions that must be taken into account. If you are not aware of all the financial information or your knowledge is limited, having the figure of an advisor is always the best thing.
Wrong decisions when taking out a mortgage, will end up weighing on time. So, seek help if necessary so that all the concepts are well clarified, and you do not have to pay a penny more for contracting your mortgage.
With these 5 tricks to get your mortgage, you will be able to get one with better guarantees. And in the event that your application is not approved, do not think that the world is ending. The rental market allows you a lot of mobility, something very mandatory for current jobs. An opportunity abroad may arise that you do not want to reject. In that case, home-ownership will not be a problem.