For many families, this is a primary issue and, despite the high price, most people decide to buy their real estate through bank products – mortgages, home loans or consumer loans.
When considering the many offers of leading lenders
it may seem to an inexperienced borrower that the range of programs available is too varied and without the assistance of a credit specialist. But in reality, all mortgage loans have common features and parameters , except for interest rate ratios, credit terms and down payment.
It is not necessary to visit all creditors’ representations to objectively evaluate each bank’s program. All you have to do is visit the official website of the bank you like and use the built-in online calculator which, once you have entered your data, will be able to calculate the monthly payment for your home loan. Receiving specific numbers for different offers will make it easier for you to distribute the optimum program for you and to screen out the worst lenders.
Stages of applying for a home loan
First of all, the prospective borrower has to choose the real estate object he wants to buy and the home loan program. The best thing to do at the same time is to find a solution that will satisfy you and your bank.
If the mortgage loan is to be taken from the secondary market, there must be no unauthorized redesign of such an apartment, but the house in which it is located must not fall into the category of old housing, be demolished or undergo major repairs.
When a borrower decides to buy an apartment in a new building
Find out in advance: Does this builder have no financial partner, the bank? If you already have a business relationship with your construction company and a particular credit institution, it is best to go directly to that bank. Such a home loan application procedure will be much faster and simpler.
Once the real estate object and the creditor are found, you can safely go to the bank branch to discuss and study the home loan requirements and terms. Before completing a transaction, carefully read the credit agreement that has been prepared for you and ask the bank to refer you to the standard contract for that bank. Comparing the terms in both documents will help you to realistically evaluate the bargain. For some points, if they are not happy with you, ask for adjustments or changes. A loyal creditor will always come to his borrower if he is fully confident in his ability to pay.
Getting the home loan you need may require you to secure guarantors or co-borrowers. With their presence, they will help raise the amount of the loan that is possible, provided that the creditor is proved his creditworthiness. The amount of your home loan is also affected by the documents that prove your income. Because the process of filing for a home loan application can be lengthy, the borrower must be prepared to submit the same statements several times to update the data.
Individuals who act as guarantors or co-borrowers can be replaced by more trustworthy ones who will respond positively to home loan terms.