When deciding to buy a house or apartment, many people are wondering how a mortgage works, what steps are necessary to formalize it and to choose the best option, as this is the financial tool that most people use to form heritage.
The conditions of the mortgages are negotiable and nothing prevents asking for offers in several financial institutions to choose the best. It is a mistake to keep the mortgage offered by our usual bank without consulting other offers. It is essential to compare the mortgages and look for the best possible conditions, as this can represent a good saving of money or acquire a better property.
It should be taken into account that the mortgage loan also includes other important expenses, such as the fees charged by the financial institution, insurance and notary expenses.
The basic questions are: the interest rate to be applied, the term, the commissions and the possible penalties.
What is a Mortgage?
Also known as mortgages; is a loan that makes you a financial institution, with a cost (interest) and a certain term. Monthly during that term, established in a contract, you must pay the agreed amount.
The property you are buying is "mortgaged", that is, as a guarantee that you will meet your payment in time and form, hence the importance of requesting a credit appropriate to your profile, not jeopardizing your finances and the assets of your family.
At the end of the payment of your credit is processed the freedom of lien, a document that confirms that no bank is due to Sofol, that the house is no longer mortgaged and that is yours.
Mortgage loans can be used for different purposes related to real estate such as the purchase of new or used house, department, land, construction, remodeling, extension or completion of work.
How is processed
Go to request it with a mortgage professional or to the branch of the bank or Sofol that you prefer. This first approach should serve to clear doubts about the process of granting credit, to know in detail the mortgage product that you chose and corroborate that it is the one that is best for you.
Usually, if you meet all the requirements, it may take 4 to 5 weeks for the signature of your credit and purchase before the Notary Public.
Rights and obligations
When you acquire a mortgage, you sign a home loan agreement with mortgage guarantee, where the rights and obligations for both parties are established.
You, you agree to pay an agreed amount monthly, within the established time and place.
For its part, the bank or Sofol assumes the commitment to respect the terms and conditions of the credit embodied in the contract.
Remember that your property remains as a guarantee of the loan, therefore the institution has the right to claim the property if you do not pay as agreed.
What happens if you stop paying
The general policy of institutions on the issue of delinquency works like this:
From the first month of arrears, in addition to the credit's own interests, interest is incurred in arrears, which are between 1.5 and 2 times higher than your credit.
If the non-payment of the monthly payments exceeds three months, most institutions will freeze the interest rate, in case of a credit with a decreasing rate, and you continue to accumulate interest arrears.
After three months, an adjudication trial is likely to begin, where the bank will claim the property as a guarantee of default.
We know that we are all exposed to unforeseen circumstances, so we recommend that, if at any time you have an eventuality that will affect the payment of your mortgage, you go immediately to the institution to raise the problem and listen to their alternatives.
Share this link: http://www.metroscubicos.com/shrt/0zvgWi
"The opinions expressed in articles and comments are the responsibility of their authors."
"Cubic Meters respects the plurality of ideas and comments, as long as they are not discriminatory or harmful to the identity, race, condition or dignity of persons."
