Do you need to take out a mortgage?

You should know that it will be a somewhat complex process if you do not follow the correct steps. To make the process easier for you, take note of each of the guidelines below, which are designed to make your search for a mortgage easier. You can start with these steps even before looking for the property you want to buy, as this way you will know beforehand if you get the financing for the amount you need to purchase the home you want.

1. Check your own payment possibilities 

Before starting the process, make an analysis of your ability to pay and current debts. Your debt, including the mortgage loan, should not exceed 40% of your current income, so calculate your budget carefully and see if you can use this percentage to pay your mortgage instalment every month, together with your other regular expenses. 

2. Research the offer in banks and credit institutions 

Do an extensive online search of the best mortgages, take the time to compare the offer of different banks, the terms and conditions, interest rates and the amount they could approve according to your income. Many banks offer an online credit simulator that will give you an estimate of the fee to be paid and the interest. You can do all your research without having to go directly to the bank, and then you can meet with a consultant to clarify your doubts or start a negotiation if you have found the bank with the best offer for you. 

3. Present the documentation 

With the documentation you would be making the formal application for the credit. Take to the bank all the requirements requested that prove your employment, tax and personal situation. With them the entity will carry out a financial study to determine the viability of the loan and the associated risk. Be patient because the response could take between 15 and 45 days. If you decide to use a manager, the time will be shorter, but it is an additional expense that you will have to consider. 

4. Have your property appraised 

If the calculation of the mortgage is positive in this first stage, it is time to make the valuation of the home you wish to buy, this process will indicate the amount of the loan you need and it will be approved. Likewise, at this point, the property is checked in the registry to ensure that it can be mortgaged. With this last step, the final approval is given for the purchase of the property and you will be able to successfully complete the process.