How long to pay it? What is the type of rate that suits me? We tell you what they are questions to ask to get a mortgage.
The first and most important is … Can I afford a mortgage?
Everything must start with this question. Mortgage payments may increase and exceed the amount of a regular income, so the economic solvency is essential when purchasing a financial commitment of this kind.
As a rule, the total share of the mortgage must not exceed twice the amount of your annual income.
Do I have information from different financial institutions?
Different banks offer different options. Be sure to be well informed and select the financial institution whose characteristics and payment plan to accommodate your chances. You’ll have to do good research!
Will I pay the mortgage alone or divide the costs with another family member?
This is one of the basic questions you should ask yourself to get a mortgage. You can be solely responsible or pay the mortgage with contributions from other family members, in which case taking into account the income of all to establish the maximum quota of debt.
Is the fixed rate will choose variable or mixed?
The interest rate can be fixed, variable or mixed. When fixed, the amount of interest payable is set and does not change until the end, which can work when interest rates are low and are expected to rise.
On the other hand, if rates are high and are expected to fall in the future, it would be best to choose a variable rate, which means that fluctuates according to certain established parameters. Mixed rates are those that remain fixed for a period and then begin to vary.
How long the mortgage term be?
One of the things you have to know to ask for a mortgage is the amount of time you are willing to cover payments of it. Remember, the longer the term, the higher the total cost of the mortgage because of interest.
Am I taking into account the change in my income?
You do not always going to win the same! Before ordering a mortgage you have to ask what your labor and financial expectations for the coming years. Even if you think the outlook is optimistic, taking into account as unforeseen financial crises, unemployment or inflation. A contingency plan never enough.
Did I read every last clause in the contract?
The famous fine print may contain requirements or provisions that are unwilling to comply. Make a thorough review of the contract and check that no such clauses. Agreeing with the responsibilities and obligations that are acquired or is not one of the things you have to know to ask the mortgage.
Now that you know what they are questions to ask to get a mortgage, is just beginning the process of investigating the different plans and undertake the adventure of buying a property.