Embarking with the purchase of a property is not a decision from one day to the next, especially if we sign contracts that bind us to a mortgage loan. For this to be a real help and not a lifelong nightmare, keep the following in mind before taking Newcastle Home loans.
Know the minimum amount that each institution finances:
There are times when the minimum amount of mortgage credit is higher than what the client needs. For example, some start from 1,500 UF and it would not make sense for someone to do all the previous paperwork without first knowing if there are credits of the amount he needs.
Like when we buy a “simple” computer. We delay its so much in evaluating price, brand, processor, RAM, hard drive, weight, design. Also, many other things that we have a good time thinking. We need to imagine how much it costs to make the decision buy an apartment or a house. Months, up to years
Because it is not a minor outlay, those who have the possibility of buying a home should consider many variables: the ideal location, combined with the necessary size of the property, its orientation, number of rooms, surroundings, services, common expenses and a long etcetera, but first of all, there is the price that we are willing to pay.
Know the type of interest rate of the operation: fixed, variable or mixed
This is a very important point, because credit institutions often offer irresistible low rates, but if these are variable they can even double for the years that follow.
With the fixed rate you always know the cost of interest that is why it is the most recommended because it does not change during the entire period in which the loan is paid. In the event that a variable rate goes through the roof when it is renewed, it is possible to change to another institution and refinance the credit, but that will also have its associated costs.
Find out the value of Operational Expenses
This amount of transactions corresponds to a series of procedures performed by the credit institution. Which is done to grant the loan (appraisal, title studies, notary fees, taxes, draft deed and conservator of real estate). The client must pay for it in most cases and they are not considered within the granted credit. The total cost depends on each institution, so it is ascertained when requesting information about the mortgage loan. In some cases there is reimbursement of expenses.
Inquire the value of Mandatory Insurance
When buying a property with help of Mortgage Broker Newcastle there are two insurances that we are obliged to contract, the one of deduction , in case the person in charge of the credit dies and there is still outstanding debt balance; and that of fire and earthquakes . Both affect the final amount of the dividend. So, it is important to ask the institution for information about its cost.
Know what additional products should be contracted
Sometimes the chances of a mortgage loan are great, with low rates, but in return they ask for other things. For example, open a current account; take out some card or line of credit, which will bring additional maintenance costs (monthly commissions). It is what that affects the final amount.
Independent of the financial institution that one chooses. It is with these points it is possible to compare on equal terms to any of the mortgage loans. Always, before getting excited and signing something that will have to tied up. It will be for more than a couple of years, it is essential to be informed.