Sometimes, it is natural time to decide to build a house or buy an apartment. Usually, there will be no external financing in the form of credit. The best will be a mortgage then. Where to find favorable conditions, what requirements must be met to obtain access to funds? Read.
Mortgage – what’s that?
To understand the mortgage product, you need to look more closely at the definition that explains it. This loan is a long-term bank loan, which the bank collects with a mortgage on real estate. This operates in the form of an entry in the Land and Mortgage Register, based on the right of perpetual usufruct or ownership. In practice, mortgage loans are only granted by banks. Procedures related to requesting and then processing a correctly submitted application require patience and time. However, to get such financing, it is worth applying so as not to waste time on corrections or supplementing formal or substantive deficiencies.
Financing goals with a mortgage?
Additional financing is constructed with the purpose in mind – it is already visible in the structure. This is also exactly the case with a mortgage whose purpose is precisely indicated in the application by the borrower. Therefore, in order to receive it, we must indicate the purpose for which we will allocate money, including:
- Purchase of an apartment or a house
- House or apartment remodeling
- Purchase of a recreational or construction plot
It is worth mentioning that the financing objectives are also reflected in the very name of the financial product we are applying for. And for example – a mortgage for the purchase of an apartment is a housing loan. And the one that we will devote to building the house – in the name will have the wording – for construction purposes.
How to get a mortgage?
Only those who meet certain requirements set by the bank may apply for a mortgage. It should be noted that this loan is subject to conditions that everyone who dreams of their own home or apartment will not be able to meet. The first of the important issues taken into account by the bank is creditworthiness. If we are imprudent in spending, we use credit cards for this, which we do not pay back on time – we can be sure that the bank will not overlook such facts. We should ensure that our obligations are repaid in a timely manner so that credibility and reliability in the eyes of the bank can be positively assessed. To take a mortgage, the bank will require us to own some property on which to establish collateral in the form of a mortgage. In addition, he can also support an appraiser who will value our property. This, in turn, may result in a lower mortgage than we have applied for. In order not to be disappointed, it is worth honestly informing the bank about the state of our assets, which will be thoroughly analyzed by the lender.
Can I get some mortgages?
If we are meticulous in repayment of obligations on time and we have sufficiently high income that directly affects the level of our creditworthiness, it is possible to take another mortgage (already having one in your account). However, you must be prepared to meet a number of additional conditions. We must reckon with, among others, own contribution (similar to the first mortgage). If we decide to apply for these funds in the same bank where we already have the first commitment, it will certainly be easier with formalities, because the bank already has a number of information about our situation. However, remember that in a bank other than the parent, we can find much better conditions. If not for the interest rate itself, which is quite low with these loans, then certainly the commission or the cost of granting the loan may be cheaper.
Where to look for the best loans?
Before we sign the mortgage contract, let’s take time to learn about the various offers on the market. Banks have a strict policy to sell us a loan. We should thoroughly analyze the differences in the cost of credit, using the experience of people in our environment who already have such obligations. Therefore, before making a decision on a mortgage, we can also learn about other financial products that will help us achieve our goals. It is worth taking a look at reliable and secure credit services, in which the process of requesting and verifying our data lasts incomparably shorter and everything happens online, without leaving home, using a smartphone or tablet.