3 Tips to apply for your mortgage and be told yes

Many have been the Spaniards who after the end of confinement have reactivated the plans they had to acquire a home. On the other hand, staying at home longer than usual has highlighted the shortcomings of many properties that were not prepared to house all family members for so long.

The effects have been manifold. Home renovations, sale of the current property, change of residence or acquisition of a property.

For all of them in most cases financing is necessary. How to apply for a mortgage loan and be told yes at first? . Focus on these three factors.

1- Current mortgage offer

You already have your chosen home and now you need financing. Which bank to go to? Yours as usual or the one that offers the best price?
These are common questions whose answer can be trick.
We might think that logically we should request financing in the one that offers cheaper conditions, but beware, this as we will see in the next point is not always the case.

The ideal is to know in breadth the different offers that the mortgage market has at that particular time. If your profession has nothing to do with finances, it can be an arduous and long-lived job since certain technical terms can mislead us along the way.

Mortgage advisors can help you because as professionals they know the sector inside out and are aware of the mortgage range at all times. You can request a free study without obligation to know which one best fits your profile.

2- How far can you go?

Knowing what your limits are when facing a mortgage loan is a key fact since you will be limiting the possibilities by staying with the realistic ones, those that fit your profile.

Let’s talk about price.

We should not always be guided by price or interest rates. We must focus on several factors. The first thing you should know is that the interest rate is not everything. You may find attractive offers with low interest rates as a hook but that carry a strong link. This in the long run will be more expensive than a mortgage with a higher rate but with less linkage.

There is a star factor to pay less than mortgage, the term of the loan. It is important to calculate what is the minimum term you can assume. A mortgage of € 150,000 to be repaid in 30 years, will not cost the same as another of the same amount but for a term of 20 years, even if the interest rate is somewhat higher.

Ideally, find the exact balance between term and interest rate, something a mortgage advisor can calculate for your particular profile.

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By Catharine Bwana