If you are thinking about buying a home or if you already have it and want to mortgage it, there are some considerations you should take into account before making this decision. In this article we tell you 3 important tips that you should know before acquiring a mortgage and that can facilitate the process.
A mortgage is a long-term loan you make with a financial institution. Whether you decide to do it with a Bank or with a Financial Company, it is important that you consider the following:
#1 Have savings
Having previous savings is key. Mortgages are long-term loans, so it is always good to have savings that help you pay off the debt as quickly as possible. You must foresee all possibilities.
In case your income suffers some unforeseen event, it is always good to have a backup plan in respond for your debts. If possible, avoid asking for more than 80% of the total. If you have a savings of at least 20% the monthly installments that will derive from your mortgage will be much more accessible and safe.
It’s important to think long-term. Mortgage conditions influence your finances for the next 30 years or so. It’s good that you know your situation well so that fluctuating rates don’t surprise you over time.
#2 Consider all expenses
Don’t rush to say yes. There are more expenses than just the net price of the home you want to buy.
It is important that when requesting an amount, you consider the extra expenses you may have. These may include attorneys’ fees, selling expenses, furniture or objects that the house may need among others.
#3 Consult different lenders
Before signing, check with different lenders. Make sure you choose the best option for you. Take into consideration the monthly fees, the appraisal and the deals offered by the different financial institutions. Mortgages are long-term loans. Therefore it is always good to have different options to choose the one that best suits your needs.
Before acquiring a mortgage, we also recommend that you make a cadastral study. This can help you know the real value of your home and if the investment is worth it with the financial institution that suits you best.
It is also recommended that you consult with an attorney. A professional you trust to explain what are the legal criteria that cover a mortgage. It is a way to make sure what you are going to sign, the conditions of your mortgage (which are usually between 20 and 30 years) and if there is any clause that is abusive and can harm you.
Acquiring a mortgage is a big responsibility. Keep in mind that the most important thing is that you have all your finances in order. Paying dues on time is critical. Do not miss any detail and remember that when you can, paying extra can bring you many benefits.
Consult with your trusted real estate advisor to support you throughout that process so you can feel more confident with every decision you make.
