In the Good Finance mortgage loan comparator we have dealt with two very related topics:
- How to negotiate a mortgage .
- Know among all the options which mortgage adapts to our economic profile .
Let’s see some clues to be able to correctly evaluate both crucial aspects and be able to contract the best mortgage that our ability to pay and solvency allows us.
To negotiate a mortgage correctly, the first thing to be clear about is the steps of the mortgage process :
- Choice of housing : verification of its real, economic and cadastral situation.
- Pre-appraisal of the house.
- Choice of the best mortgages in the market that fit our needs.
- Negotiation with the financial entities of the particular conditions of the mortgage loan.
- Rate with the bank’s appraisal company.
- Notary signature of the deed of sale and the mortgage loan.
Before starting the negotiation with the branch managers, we must be clear about the steps to follow, obtain all possible prior information and plan our strategy accordingly.
Good planning will prevent us from wasting time and stress
Choosing a home is not just finding the one we like. We must request an updated simple note to verify the type of use (residential or tourist, among others), its registration qualification (urban, rustic, local), the current owners, the registered area or the previous charges (mortgages, liens), between other aspects A copy of the deed of ownership will also be very useful.
When we are clear that we have chosen a house without tricks, the ideal would be to have a recent appraisal of the asset or, failing that, request a pre-appraisal , an estimate of the appraised value via online or with some contact in banking or from an appraiser.
With this data one can go bank by bank to see the conditions of the market mortgages or use a mortgage comparator like Good Finance. Selected the mortgages that best suit our preferences and possibilities, it is time to visit the bank branch to negotiate.
Something very important that we must change in our mental approach: we are not going to “ask” for a mortgage from the bank; We will agree on the conditions of a very important long-term contract that, if it goes well, benefits both the bank and us. Therefore, to ask for anything. We will negotiate .
We have to have prepared the documentation to be delivered to the bank and the photocopies of it. Bring as many copies as banks we have pre-selected.
We must be clear about the conditions offered by the entity to its best clients and the possibilities that we are included in this privileged segment.
Accessible by our profile
Many times the best mortgage that an entity announces is not accessible by our profile , either because we do not have the necessary income, either because we need to finance expenses or for other personal and economic circumstances that distance us from the supposed ideal client for the entity.
Therefore, the work is twofold:
- Select the best mortgages available in the market, both through tools such as the Good Finance mortgage comparator and visiting the offices of the different banks (since there are mortgage offers that the bank does not advertise).
- To deepen in each one of the mortgages, and to find out if these mortgages adapt to our economic situation.
We will try to give some practical advice to be able to choose the ideal mortgage for us. And for this we must first be clear about our strengths and our weaknesses in terms of risk and then know what mortgage loan we can access.
Strengths and weaknesses in mortgage risk
The bank, basically, what it wants to predict is whether we will repay the borrowed money plus interest on time and without giving it additional work. The points analyzed are:
- The amount of our present income.
- The stability of our income in the past and how it estimates they will be in the future.
- Our consumption and investment guidelines and saving capacity.
- Previous credit history.
- Family and social factors, as to the possibility of providing guarantors, double guarantees, or help us if we have payment problems, for example.
- Subjective factors, such as our personality, professionalism, punctuality, etc.