When most of them need to buy, build or renovate a home, most people opt for a mortgage loan. Other types of garages are accepted for a real estate loan, but for a mortgage loan it is obligatory to guarantee with that house for which the money is taken.
Unlike quick loans or for personal needs that are usually repaid in 1-5 years, a mortgage loan will extend over a much longer period of time. Most mortgage loans are offered for 30 years, but there are some banks that offer a repayment term of even 35 years.
The amount borrowed is large, but so are the commissions taken by the bank (especially the analysis and granting commission). Penalties are generally granted if the loan is repaid earlier than the deadline.
How to Choose a Mortgage?
There are many banks that grant mortgages. Taking a mortgage is a very important decision, because it will be paid for the rest of your life. That is why it is necessary to analyze all the options very well.
We compare different offers and helps you find the best solution. We work at national level with the best partners in the financial sector and we take care to analyze objectively each offer.
What Are the Steps to Obtaining a Mortgage?
It depends on each bank or lending company what conditions it has. But most companies will ask:
- Proof of salary or proof of income obtained (pensions, rents, dividends, independent activities, copyright, etc.).
- A certain age at work
- Age of minimum 18 years and maximum 65 years
- An advance that differs from one bank to another (generally it’s 15%)
- Other specific conditions
Why Should We Consider Before Taking A Mortgage?
The most important aspect to be taken into account is the interest rate and the commissions received. Banks can grant a mortgage with a fixed, variable or mixed rate.
Fixed rate – the payment amount stays constant throughout the contract. The advantage of this method is that you will know in advance exactly how much is paid each month. You don’t have to worry that the rate will increase. A mortgage with a fixed rate usually has a repayment term of 20 years
Variable rate – this rate is reviewed annually or twice a year, and changes depending on market conditions and the index. The advantage is that the rate is lower at first, and sometimes it can even fall. It is also granted for a longer period of time, for 20-30 years. The disadvantage is obvious that the rate can increase.