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What to watch out for when dealing with mortgages

We are in a time of historically low interest rates. In the event that this favorable situation is going to be used, be careful not to when dealing with the mortgage loan did not encounter the problem. Getting a mortgage is has its pitfalls. Offers are not free, not all revenues are in terms of creditworthiness and accepted mortgage is not a matter of just a few days.

Do not be tempted by a veneer of nice numbers

The lowest interest rate may not be for the client the best solution. Yet many of them left to catch just the number tempting. Especially in the current period when interest rates humbled the 2% limit, the rates are beginning leader, without exception, something contingent. Generally, it is usually negotiate risk insurance or property insurance, the establishment and use of the current account, waiver of discretionary payment or other conditions. It is necessary to consider how much lower rate actually save on installment and how much will such as credit insurance state. It is important to quantify the total costs and consider the usefulness of complementary products.

Miscellaneous revenue assessed differently Bank

Banks thoroughly examine the source and amount of income of the client and not all the revenue that the client receives a monthly basis, for banks in terms of loan approval deductible. "Problematic may be a sole trader, who claims costs tariff. Some banks in such a case, the income shall be deducted from the flat rate, calculation of health and social insurance and income tax. The calculated annual income for the bank is authoritative. A less stringent approach lies in the fact that the bank deducts from revenues raised three quarters of flat spending and tax. The result may differ very substantially, "says Jan Kruntorád, chairman of Gepard Finance." Proceeds from the category of maintenance or some types of pensions banks in the vast majority do not recognize at all. On the other hand, there are but banks, which can be demonstrated even income from a full disability pension or income from future rent, "says Jan Kruntorád.

Do not rely on that process mortgage is a matter of a few days

People easily become the impression that mortgage approval is a matter of a few days. Experienced and reputable adviser but acknowledge that this process actually takes about two weeks, in more complex cases three weeks, but sometimes a whole month. One to two business days typically takes time to transfer all the required documents to bank approval. Ensure all documents required by the bank in the appropriate quality, however, can make the whole process a lot of stretch. For example, a certificate of income issued by the employer may be done during the day, but it can also be a question of the week. Most of the time it normally takes property appraisal. This ideally takes about a week. The estimate is often necessary to prove ownership of the current sheet, the image cadastral maps, title deed, or various other documents by the bank in some situations require.

Beware of rejection, first we'll approve a mortgage

People often need to react very quickly to offer on the market, and if they have a property interest, are soon forced to compose booking deposit. "Deposit without the client had a very real indication that the loan gets, but it is a gamble. Even before looking for a property is therefore appropriate to use the mortgage approval in the required amount and also the approval of the maximum frame mortgages. For such cases we offer mortgage services, on the contrary, that allows you to find real estate and mortgage process and add the object and the object of the loan collateral to nine months after approval, "says Jan Kruntorád. But even if the client is going to buy a property on the head, and the bank subsequently refuses credit, it does not mean a fatal problem. "Dismissal with one bank does not necessarily indicate a serious problem. The reason may be some internal thing at another bank does not play a role. Certainly it is fair to ask at another bank. However, if the applicant nepochodí with multiple banks is probably a bigger problem. An experienced mortgage broker, however, in such a situation with a client did not get, "says Jan Kruntorád.

Beware of credit card and similar obligations

Credit cards, overdrafts and consumer loans significantly affect the creditworthiness of the loan applicant. Although each individual bank approach, it is generally possible to describe the influence of these credit obligations to the possible amount of the mortgage. Every loan that client pays, reduces the amount of new mortgages as well as thousands of dollars. It is true that the particular credit cards and overdrafts some banks may not take into account. For other banks, but the credit limits of credit cards and overdrafts can significantly reduce the creditworthiness regardless of whether the client of a credit card money is actually taken or not.

Source: tz

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