Get to know the most important things you need to pay attention to when you prepare to take a loan
Do you want to take a mortgage and finally enjoy your dream apartment or house? Here’s what to know before going to the bank and signing the contract.
It is quite widely said that a mortgage is the cheapest money on the market. This is true, but it is also a commitment for several dozen years, as well as a complex financial product. Complex, because it has such a large number of parameters that sometimes it is difficult to find all this. However, knowing what to look for, assessing the offers of individual banks will be simple and pleasant to.
Before you decide to take a mortgage, you must have a down payment. The minimum is 10% of the property value. It is true that you have to buy additional insurance, but at least at the beginning you can give less of yourself.
Banks are currently obliged to require borrowers to double their (20%) own contribution. Thus, it is not possible to finance 100% of the investment value from the loan.
In addition to the own contribution, it is equally necessary to have creditworthiness, which each bank assesses only in a known way, guided by its own credit policy. Despite some differences in your approach, you always have to expect an assessment of your income and the source from which it comes.
Therefore, a person employed on the basis of an employment contract will be classified differently than an entrepreneur running a sole proprietorship. In addition, it will be necessary to submit the required documents confirming your current financial situation.
The interest rate is the initial parameter affecting the total cost of the loan. Under this mysteriously sounding concept is the margin, which, in the most simplified terms, is the bank’s profit and the WIBOR rate
(Warsaw Interbank Offered Rate – the interest rate on the Polish interbank market, i.e. the interest rate at which commercial banks grant each other loans). However, let’s focus on the margin, because in this statement it is the only value you can influence, because it depends on the bank’s policy.
The total cost of the loan also includes the bank’s commission and a number of other additional fees, which you must also remember before signing the contract.
In view of the fact that there are many points of interest, maybe you should consider the help of an independent financial expert? After all, he, like very few people, knows how to do things and can help you make this important decision.