Before applying for a mortgage loan it is necessary:
Deciding how much to ask. In addition to the price of purchase, expenditure mentioned in the box above and expenses of the mortgage loan, such as pricing, the origination fee (if any), the agency, taxes, etc. must be taken into account It is recommended that the monthly payments do not exceed 35% of the income of those applying for the loan, it must be taken into account that income may change over the years and that quotas of variable loans may rise.
Compare offers from different financial institutions studying the generic information of its prospectus (Precontractual Information Sheets), which are delivered free of charge to anyone who requests it. It is important to look at the APR, which is the annual interest rate actually paid in a year, and includes the fees charged by the financial institution and payment deadlines.
Analyze Personalized Information Sheet. Once you have chosen the bank, and before committing to it, this will give no charge Personalized Information Sheet on the financial conditions of the loan offer will be detailed.
Request a binding offer. Requested the loan and made the appraisal, you should ask the financial institution a binding offer with all financial terms of the contract. The binding offer will be valid no less than fourteen calendar days from date of delivery. If while Personalized Information Sheet and agree its content is made, both can be delivered in a single document.
Writing mortgage loan
Accepted the binding offer, the financial institution shall forward the documents to the notary chosen by the buyer to prepare the deed and mortgage loan deed. Remember that the buyer has the right to choose the notary.
It is important to remember that the buyer has the notary three working days before the signing of the deeds to examine them thoroughly with notary’s advice and seek clarification and changes to the financial institution if necessary.
Loan delivery usually occurs simultaneously with the signing of the deed of sale.
After the signing, the notary sends the registration of the property an authentic electronic authorized copy of the deeds of sale and the mortgage loan.
When the loan is paid off, it would be one last step: the deed of cancellation of the mortgage. The sign only the representatives of the financial institution at the request of the debtor, who have the right to choose the notary who authorizes and to advise on the costs, which are borne by their own. Once signed, he enrolled in the Registry of Property.
Interests and clauses
Interest: This is the price paid for the loan. It is the result of applying a percentage to the money owed at all times. The interest rate can be fixed or variable. If something little usual fixed is usually higher than variable. The advantage is that you always know what you pay because it will not affect possible declines or increases in reference rates during the term of the loan.
However, most people prefer a variable interest at a rate (which is usually the Euribor) to which a differential, which is the minimum interest rate applicable to the loan if the rate agreed reference down to is added zero.
Clauses: As important as the reference rate and the differential are the clauses that some entities include in their contracts, which limit the variation in the interest rate applicable to the loan. These clauses indicate a maximum (ceiling) and a minimum (floor). It is in the so – called “floor “where you have to pay special attention because when it is reached, the interest rate drops reference not translated into a reduction in quotas.
The notary:
- It will check whether limits have been established to changes in the interest rate, collect that circumstance in writing, and explain expressly and detailed its effects.
- It will inform you of any relevant increase arising in their quotas, and the effects of grace periods, if any, in the amount thereof.
- You will see that non-financial clauses in writing does not involve fees or expenses that should be on the financial clauses.
Unfair terms: Only judges can declare an unfair term. When you have done so, the judgment is final, and is registered in the Register of General Contract Conditions, notaries must remove them from public documents. To help in this task, the General Council of Notaries has created the Body Control unfair terms (OCCA). In this way the legal certainty increases in hiring and helps prevent legal challenges.