What do I need to know to apply for a mortgage loan?

A home loan or mortgage consists of obtaining money to buy, refinance or improve a home. Before applying for a mortgage loan, you should take into consideration the following recommendations:

1. Find out the current interest rates: You will need to do internet searches or call several mortgage lenders to get this information.
2. In Spain, the reference interest rate is the Euribor, and you must know that the French method is used; that is, in the beginning, you pay most of the interest, and they are reduced as the years go by. For this reason, the less time you choose to repay the loan, the less interest you will pay.
3. Look for information in different banking entities: with the information provided by various banks, you can compare the other loans and terms. Likewise, you must ask for the requirements that they put, that is, what they ask of you to give you those conditions: life insurance, home insurance, direct debit payroll, cards, pension plans, etc.; this is very important because it will provide you with the information of the total amount that you are going to have to pay throughout the year. Likewise, it is essential to see both things, since if you have a low-interest rate, but the requirements are many, you will pay more than with one that asks you for fewer requirements and a higher rate.
4. Find out if they work with fixed or variable interest: variable interest rates can vary during the mortgage period, so you only have the security of the amount of the letter during a period, and it is usually reviewed after six or twelve months. The fixed rate is usually a little higher than the variable, but this gives you the peace of mind that you will always pay the same letter and not change over the months and years.
5. Most banks ask for an initial contribution of 20% of the price of the house. However, some banks grant you 80% of the appraised value, which in some cases is higher than the sale price.
6. Ask what interest they will give you if you pay the loan in advance or advance amounts partially. With this last option, you can choose between lowering the letter's total or decreasing the financing time.

This article is for informative and informative purposes. For this reason, it is essential, before making any decisions, you visit or contact a certified specialist in the field, as the expert's opinion is what should be considered.

Rafael Sanchis

Reliable and well known real estate investor in the area, who puts their clients first while guiding them through every step of the process.

To offer our clients personal and legal advice and assistance, while offering the best houses in the town of Villanueva del Rosario (where the Real Estate Agency is located) as well as towns in the province of Malaga and the province of Granada as our Real Estate Agency is included in a large network of Exp Realty agents distributed throughout the Spanish territory.    

Exp Inmobiliaria Tian has a wide range of properties, villas, flats, townhouses, penthouses, luxury properties and plots.  Our Real Estate Agency belongs to the Association of Real Estate Experts and we manage the sale of all the properties in open exclusivity, in this way we collaborate in its sale management with 88.000 thousand real estate agents all over the world belonging to EXP Realty, as well as, the collaboration with more than 500 external real estate agencies composed of 3.000 Real Estate Agents. 

Exp Inmobiliaria Tian puts at your disposal a professional cabinet of consultants specialised in different fields to offer you an integral coverage on other aspects that you may need: - Insurance for companies and individuals, - Integral legal advice for companies and individuals, - Processing of inheritances and wills.