When we want to buy an apartment, house, plot or are going to build a house, it is worth carefully looking at the offers of banks that offer financing for such a purchase.
When we want to buy an apartment, house, plot or are going to build a house, it is worth carefully looking at the offers of banks that offer financing for such a purchase. There are so many mortgage loan propositions that navigating among them can be problematic.
Must specify the requirements for the loan
Choose the loan period, specify the currency and repayment option (fixed or decreasing installments).
Then – analyze the price and procedural conditions of individual banks.
Depending on the bank, sources of income are approached differently. For example, the required period of running a business, which must be identified when applying for a loan, is only 6 months in some banks, but 24 months in others. So there may be a situation when the offer is attractive, but we are not able to meet the requirements.
When considering loan costs, you should not limit yourself to checking the commission amount and interest rate. Many offers, which seem cheap at first glance, turn out to be less attractive with careful analysis. Loans with the lowest interest rates do not have to be the cheapest.
In addition to the installments paid
The banks add various types of fees: real estate appraisal, credit insurance until the bank is entered in the mortgage, life insurance, insurance against the risk of losing a job.
Borrowers who take out a loan to build a house should also pay attention to the conditions for releasing subsequent loan tranches.
Check whether the bank requires a construction check by an appraiser, whether invoices should be provided for the work done and the materials purchased, and if so, for which part or if it is assessed, at what time the construction should be completed.
It is also worth finding out
When the bank will consider the application. If we have found an attractive property at a good price and we have to pay for it quickly, you should carefully check how quickly you can count on the bank’s decision. When banks introduce attractive promotions and have more applications than usual, the waiting period can be significantly extended.
When choosing a specific offer, it is good to follow the banks’ proposals, talk to friends who have already followed a similar path, browse the internet forums or use the help of an advisor who – knowing the current offers of banks – will help tailor the product to individual needs and preferences.