After searching and searching you have finally found it, the house that has everything you need, the perfect candidate to be your new home. At this point you must be patient, you are making a decision that will surely impact the next thirty years of your life and you must consider all options before choosing such a large investment.
The first thing you have to consider is not to make the arrangements quickly and run. Understanding what you are signing, comparing different types of mortgage and preventing possible risks are your weapons in choosing the best mortgage for you.
From Espígul Real Estate we want to give you some advice so that you can choose the best mortgage and make the purchase of your home a success.
What kind of mortgages are there?
The first thing you should know is what possibilities there are so that you can decide which one best suits your needs:
- Variable rate mortgage: In this type of mortgage loan, the interest is calculated on the Euribor, which is the reference index in Spain. Therefore, the monthly payment that has to be paid can vary according to the evolution of the Euribor.
- Fixed-rate mortgage: In this type of mortgage loan, the monthly payment does not change throughout the duration of the mortgage. In other words, even if the Euribor changes, you pay the same monthly payment as the initial one.
- Mixed mortgage: This type of mortgage loan is a mixture of the two previous ones, an initial price is agreed that is paid for the first few years and then it becomes an adjustable mortgage, where the price depends on the Euribor.
Do I have to save before taking a mortgage?
Before buying a property you should know that there are some banks that do not finance more than 80% of the value of the valuation of the house. Therefore, this remaining percentage must be paid in order to buy the property.
You should also bear in mind that there are different costs, such as the mortgage deed, that are paid by the buyer and therefore it is advisable to have some money saved to be able to pay for all of them.
If you want to know everything you need to ask for a mortgage loan, you can read this post.
What fees can a mortgage loan have?
All mortgage loans usually have some additional commissions, which vary depending on the bank. It is important to check these fees carefully as they can cause the final price to rise. Some of the fees you should know are
- Arrangement fee: for formalising and disposing of the loan funds.
- Commission for the account associated with the mortgage: in case you need to open a complementary account where you can make the charges for the mortgage.
- Modifying novation commission: for all those changes that you want to make and that change the initial conditions of the loan.
- Subrogation fee: in case you want to transfer the mortgage loan to another bank.
Negotiate mortgage fees
Luckily, mortgages are not a closed product but can be adapted by banks according to your economic profile. It is important to ask for different mortgage offers so that you can compare and choose the one that best suits your interest.
At this point it is interesting to know that your bank "of all life" surely prefers to improve the conditions of a treatment that not to lose a client. A mortgage loan is a business and should be treated as such.
Find a mortgage that suits you
Finally, before taking out a mortgage, you have to know yourself. Be honest with yourself and know whether you have the necessary liquid assets before embarking on the process of buying a home, whether you will be able to pay a variable interest rate, etc. This step obviously has nothing directly to do with being able to take out a mortgage or not, but it will help you to know what type of mortgage best suits your needs and lifestyle.
At Inmobiliaria Espígul we like to accompany you throughout the process of buying your home, from the first doubts to the closing of your mortgage. Do not hesitate to contact us at hola@espigul.com or call us on 972 220 110.