Are you starting a new chapter in your life? Be it after a wedding or after starting a family or for any other reason, buying a house is always an exciting moment. It means the beginning of the next journey of your life, and that is why you should look for that extra special place which you could call your home.
But buying a house could be a difficult affair if you do not stay conscious of the financial paper works that you generally have to go through. Often so, if you are not entirely aware of it, you might get ripped off and have to pay the consequences for every moment that you stay in that house
Help thankfully is close at hand. You can always get a mortgage advisor who would be able to help you with your decisions while taking care of the financial angles more specifically. Just like a broker can find the best finance deals and the best companies for you, the mortgage advisor will be able to get you your dream home.
A mortgage advisor will specifically help you in understanding the different mortgage options you have got; he will give you advice on mortgage, repayments, protection, and re-financing. Do not worry if you find out that your mortgage advisor has not received more than the basic training. The mortgage advisors are different from the brokers in the fact that they do not require good professional qualifications or training in specialized courses to be a success. They just need to be dexterous in matters of customer relations and service.
They usually start off as customer service representatives in the banks or they initially assume an administrative post in the financial companies. Only when they start taking more serious mortgage issues to advice on do they need specific training. Under the Financial Services Authority, the mortgage advisors need to take courses like the Chartered Insurance Institute (CII) Certificate in Mortgage Advice, or the ifs School of Finance in Mortgage Advice and Practice (CeMAP). They also have to appear for their exams. If they pass them, they become fully trained financial advisors.
At a time when banks grant loans under more restrictive conditions and the real estate market does not provide a clear picture of the value of the real estate, it becomes a real adventure to buy the house on credit. Here are some tips to increase your chances of a mortgage.
1. Choose a bank that requires a small advance
Any credit mortgage must contribute an amount in the form of an advance. This is determined as a percentage of the evaluated value of the property or the sale price. At present, banks require an advance of between 0% and 35%. Thus, in case of an advance of 25%, if the building costs 60,000 you should contribute from own sources with 15,000, the remaining 45,000 being obtained from credit.
2. Choose a bank that accepts as many co-borrowers
If your income does not allow you to get all the credit, try to find a bank that will accept as many co-debtors. Generally, they must be relatives or have the same address in the bulletin. Recently, however, banks have become more permissive.
3. Compare offers and ask for a more accurate cost simulation
At present, there are very high-cost differences between banks. If the best deals, at a mortgage loan of 250,000 for 25 years, starting from an interest of 11.43%, the most expensive offers have an interest of almost 30%. The same is true for foreign currency loans. Under these circumstances, it is very important to try to get financing from a bank with more favorable cost conditions, so that the monthly effort is as low as possible.
4. Present all the documents requested by the bank from the beginning
It is very important that the credit file is as complete as possible so get a response from the bank as soon as possible. Ask twice the credit officer if there is no need for any documents before filing the file. If the bank’s response is extended too long, there is the possibility of no longer obtaining the necessary financing within the time limit imposed by the seller of the building by ante-contract.
5. Look for a bank that guarantees the offer from pre-approval
Given that changes in interest rates or commissions occur more frequently in bank offers, some of these changes may be applied even if the file has already been deposited with the bank. Thus, the amount you could have earned from the time you submitted your application may diminish.
If you offer the seller too much, and the bank will not later credit, you can lose that advance. You also need to be sure that the help you are receiving from your mortgage advisor is not biased. If you approach a bank to be able to get all the help you need, you will be receiving advice on only the benefits that the bank offers. You will be missing the other side of the coin completely.
This is why it is better to do your research work and find out an unbiased, professional mortgage advisor who can take care of your financial deals when you go out looking for a new house.