A mortgage loan is not the same as a mortgage, they are often confused, but they have a big difference and it is that the home equity loan serves to obtain money by putting your home as collateral, in case of default, you lose your home. In the case of the mortgage, it is a debt that we contract with the bank to pay your new house in installments.
If what we need is to apply for a mortgage loan because we need a significant amount of money, read on below.
What advice to follow to take out your mortgage loan?
It is important to know a series of issues that we should pay attention to when we are going to take out a mortgage loan. Each particular case is different and if we value our letters well we can facilitate the process a lot. Another important point that we must keep in mind before applying for our loan is that we have a previous savings deposit to be able to deal more easily with the purchase of our house.
1. Rate the contract
One of the most important and decisive steps of taking out your mortgage loan is the signing of the contract. It is very important to review the contract clauses well. Something very advisable is to ask for a copy of the contract and review it patiently at home or perhaps asking for help from an advisor. It is necessary to read the entire contract very well, including the fine print and not leave information for granted.
Some important clauses would be:
The cases of default
insurance and other products associated with your mortgage loan
permitted uses of the property
or cost of early cancellation.
2. Evaluate the type of insurance
Most mortgage loan contracts usually carry associated expenses for other types of products such as insurance, and usually are. There are different types: home insurance, life insurance, theft or fire insurance ... etc. It is advisable to assess well what are the conditions of these products since choosing well you can save some pesos.
3. Total financial cost and the initial fee rate
On the whole it is essential to review the Total Financial Cost of the purchase of the real estate, but the initial fee rate is also important since this type of added expenses can greatly influence the amount of our fees. Such as administrative expenses, reporting and granting, etc.
4. Consider the expenses of writing
The clerk's expenses can be an important percentage of the total loan expense. Since this expense runs from the buyer's account it is advisable to take into account who you hire for this purpose and their fees.
5. Think long term
We must think in the long term, when we contract a mortgage loan we must take into account that at least 10 years are in which we have to take care of this expense. On the one hand inflation and financial-political instability generate a distrust in the market, however, in general the payment of a mortgage is usually more affordable than the payment of a rent , so by valuing all these tips well we can get some Beneficial conditions for our situation, compared to a rental. On the other hand, UVA credits give us the opportunity to pay fees according to the state of the market, so we must take advantage of this opportunity when it suits us.
6. Required documentation and requirements
When hiring a mortgage loan, another of the fundamental steps is to provide the necessary documentation and meet all the requirements for the loan application to be effective.
As for the mortgage loan requirements, they are usually the following:
Submit Argentine ID
Be between 21 and 55 years old
Last payroll receipts
Certificate of employment
Summaries of current credit or debit card
Marital status of the applicant
Finally: photocopy of the title of the property and proof of the real estate tax showing the cadastral value.
It is important to have the time in which you will get the issuance of these documents so that they are finally on time when applying for your mortgage loan. If you cannot gather them, it is better that you do not show up for the prequalification of your home.