Are you getting ready to buy a new home or apartment and apply for a mortgage? To avoid surprises at the time of purchase and when choosing the type of financing and also the lender who will make the entire mortgage process, it is best to make sure you get the best deal before closing any deal.
Search, simulate, and make comparisons okay, but to take out a mortgage with a home equity loan, we listed ten simple but key questions to be able to send your mortgage application and have no problems later with the transaction.
1. What is the interest rate to apply for mortgage?
The simulation is for this, ask for an estimate of the actual interest that will be applied on your mortgage loan, this includes the annual interest rate, plus information about taxes and other charges that complete the total amount (CET) you will pay when you apply mortgage for your property. The interest charged is around 1.15% onwards.
2. Commission on origination, will I pay?
Some credit companies that do the loan intermediation, mortgages and financing, may charge an origination fee, a kind of commission on the total amount of the loan released, the normal is the bank to make that transfer, but there are cases where the amount is added to the amount requested and passed on to the mortgage contractor, for example: if you take out a mortgage of R $ 378,000 and must agree to pay a percentage to the intermediary, suppose it is 1 percentage point, in which case it would be equivalent to a R $ 3,780 reais.
Divide the loan amount by 100 to calculate 1 percent. Home commissions are fees charged by the lender to cover the costs of originating the loan to a bank or financial institution, it may be that you have another name where you apply for your mortgage .
3. Is there a penalty for early repayment of the loan?
Some lenders will apply a penalty if you pay the loan in advance or the mortgage before the stipulated term for minimum payment of installments, eg: 6 months, 12 months, etc. Some apply the penalty only when you try to refinance, or try to reduce the principal’s balance or try to make the portability of credit to lower the current interest.
Ask your lender or read the agreement to find out more details about possible fines and see if it will give you a lower interest rate when refinancing when you can, or if you choose to take out or make a mortgage portability you will lose the interest discount, or that you have to pay some kind of fine or extra fee.
4. What is the minimum amount needed to get this loan?
A higher monthly installment payment, medium or short term, can mean a higher or lower interest rate, or better conditions to acquire a mortgage. On the other hand, an initial down payment is likely to require you to get a mortgage with a longer term. In some cases you will have to take out insurance for the mortgage, and this will increase by a few hundred reais your monthly payment.
Currently each bank stipulates the minimum amount to approve a mortgage loan, we have seen some online companies that start with a minimum amount of R $ 30 thousand reais and up to 240 months to pay the mortgage, the form of interest collection and combined with the lender .
5. What are the requirements to make the mortgage?
Ask the lender if there are any requirements that you have to meet in relation to your income, current employment, assets, liabilities, in addition to credit history, score or be negative or not at SPC and Serasa. Some programs to finance the purchase of real estate with mortgages, especially by the government, are usually less demanding and have less strict terms.
6. What documents should I provide on a mortgage?
Mortgages that offer mortgages, such as Cash Loan with Property Assurance, generally require proof of income, bank statements, income tax or tax returns and documents without burden of the property when done the refinancing of property with mortgage.
Everything will depend on the lender, in case sporadic it is necessary to present specific documents and verifiers, but this is at the time of analysis for approval.
7. How long does it take to review a mortgage application?
Once again it will depend on how efficient the lender is and how organized the requested documentation that you submitted at the time of the mortgage application is, usually the term can take anywhere from two weeks to 45 days or more.
In this mortgage application process, there is no need to hurry, you have to be patient and send all the requested documents as soon as possible to speed up the process of approval and release of the requested credit.
8. What could cause my mortgage to disapprove?
- Recent Job Change
- Reduction of salary in recent months
- Debt that compromises income
- No minimum proof of monthly income
- Change in credit history or score
- Change in marital status (divorce)
To Apply For Mortgage!?
Many facts can delay or cause disapproval when applying for a mortgage. The best way to avoid problems of analysis and approval is to put your financial life into an eligible standard at the time of applying for funding.