Ask for information on the best mortgages at your fingertips to the experts and real estate credit brokers selected by Futur Finances, who perfectly know the requirements that banks need in order to grant mortgage or financing following their policies. There are a number of common variables that we must meet if we want to request a mortgage with minimum guarantees of success that we explain in this article.
If you want to know if they will grant you a mortgage, fill out the form below.
HAVE THE BEST MORTGAGE PROFESSIONALS
To get a good mortgage granted by a bank in Spain and processed by the best mortgage brokers (selected by this portal) this year 2020 it is important to consider:
- Mortgage brokers are responsible for compiling the economic documentation and information of the client and the house you want to buy, to recommend the best mortgage solution for your case. The mortgage is approved by a bank, whose risk criteria may change while the mortgage is being processed. Therefore, only when you have signed a notary then can we tell you that a mortgage is approved. A mortgage broker depends on the work of the banks with which it has an agreement. What they can assure you is that they will not charge fees if they do not get the mortgage in the conditions you are looking for.
- Our employees have a team of professionals with the necessary training and experience to negotiate for you the best mortgages on the market.
- We have agreements with mortgage professionals throughout the national territory, with physical presence in the main squares of Spain.
- As of June 2019, a new regulation that regulates mortgage loans to individuals with a residential real estate guarantee came into effect. Law 5/2019 that we summarize in our blog requires real estate credit brokers to provide their clients with prior information so that they have all the information about the mortgage professionals and the fees they charge; they must also deliver the intermediation contract and the counselling contract (if they provide this service) to the client; In addition to being registered, brokers must prove to the Bank of Spain that they have the necessary mortgage training to perform their work. These are guarantees that allow Futur Finances users to know that they hire the best professionals. Let us think that the CEO of Futur Finances, Pau A. Monserrat, is very involved in the safety and informed contracting of mortgages by clients, so being so that he has participated even as an author in the collective work of Wolters Kluwers ‘Comments to the Regulatory Law of Real Estate Credit Contracts’, analyzing the new regulation of real estate credit brokers and non-credit real estate lenders. Work that we recommend for those who have a mortgage and who wish to be well trained in the subject.
The net monthly income of the applicants is the basis of any risk analysis in order to approve or deny us a mortgage. In order to request financing, it is vital that payroll income, self-employed income, rental income for property ownership or any other monthly cash inflow be sufficient to meet the mortgage payment. What is technically called repayment capacity. Our percentage of indebtedness with respect to income should not exceed between 30 and 40%, which means that we will never approve a loan whose quota approaches or exceeds half of our income.
For a couple that gets a total of 2,400 euros per month clean income , for example, the maximum mortgage repayment will be between 720 and 960 euros. Taking the interest rate that apply to us and the term granted to us, we will know the maximum indebtedness that we can reach (use our online mortgage calculator for this type of calculations).
In addition to the debt ratio, the stability that the holders have regarding the income of money is very relevant. A mortgage for a public employee is much easier to obtain than another for an undefined worker of little seniority in the company, which in turn is more likely to obtain than that of a freelancer or temporary employee.
Mortgages at 100% plus expenses today are almost impossible, even providing guarantors or double real estate guarantees (although in this case you can study their viability). Most commonly, the bank offers a limit to finance, which is usually:
- The lowest value between 100% of purchase and sale and 80% of the appraisal value, so that at least we have to have saved the expenses, which represent just over 10% of the total loan requested.
- The lowest value between 80% of the purchase and sale price and appraisal, forcing the mortgage applicant to have money saved to meet 20% of the house price plus all expenses.
If the requirement to have money saved is not fulfilled, asking for a mortgage is really an impossible mission, unless we have other guarantees to offer that may interest the bank.
BE UP TO DATE OF OTHER DEBTS
In addition to not having prior indebtedness at the time of requesting mortgage-backed financing, whether personal loans or credit card debts, it is also essential not to have defaults. A debt in a record of defaults, be it telephone or failed loans, automatically blocks access to a mortgage. It is not worth wasting time, before starting the process we must pay off all our debts. There are no mortgages within our reach if we are in the RAI or the Asnef in uk this would be the Experian Report. To reunify debts with defaults there are sometimes options, but you have to take into account the high costs of this type of loans to put them together.
In short, to request a mortgage we have to demonstrate in a clear way that we will not have problems paying the instalment. For your own safety and for the bank.
ASK FOR A MORTGAGE IN 2020
Obtaining a mortgage loan in 2020 is easier if we have savings or we can provide simple guarantees. The Spanish economy has stabilized and begins to grow at a sustainable rate. That means that banks believe that customers will keep their jobs, basically. For groups such as officials according to the area and mortgage time in which we find ourselves, the collaborating real estate credit brokers even get 100% mortgages plus expenses.
The indefinite can sign a 100% purchase mortgage if they have money saved for the purchase expenses or the possibility of providing a home free of charge from a family member as a second guarantee. Mortgages for freelancers and other groups are usually more complicated to obtain, although our mortgage brokers can offer you all the mortgage solutions that the market offers at all times.
On the other hand, real estate in urban areas and in important provincial capitals is already increasing in price, which also helps to get mortgages.
7 TRICKS TO REQUEST A MORTGAGE
1.- Acquire some basic mortgage knowledge before starting the process of contracting a mortgage loan. The mortgage guide led by our CEO is a practical and simple source to start this initial training. To deepen the aspects that interest us most, also go to the ‘Guide to access the mortgage loan’ of the Bank of Spain.
2.- Once you have acquired the minimum training that any family must have before going to a bank, we will know that each mortgage is a world. The interest rate is important, but also the commissions, the related products (insurance, cards and other services that we have to contract in addition to the loan) and the fine print (existence of land clauses, shortcomings, etc.). Comparing is essential, using the independent online tools, going to the website of each bank to download and read the European Standardized Information Sheet (FEIN) of each mortgage and, also, choosing a branch to inform us personally.
3.- Negotiate with the entities that have the best mortgages. This step is essential and is the one that requires more effort and time. Let’s prepare a dossier with all the economic and house documentation that we want to buy, duly updated, and go to several banks at the same time. We should not waste time with the bank employee, if we want to get the mortgage approved quickly; as a result, we set up an appointment at the office when we have prepared and complete the report, never go halfway with the documentation. At Futur Finances we work with the best mortgage professionals in this area.
4.- Go to a lawyer, economist or independent professional specialized in financial products and pay the corresponding consultation fee or advice. It is very important to know that banks will not adequately advise us of our options and investment in independent professionals is a very important future savings. While the ideal would be to advise us throughout the process, at least we must pay the consultation when we already have firm offers; The FEIN is the document that allows us to compare mortgages that have already passed the bank filter, which will have requested information about our financing needs and financial situation.
5.- When we have decided, we have to assess and think about it. Let’s keep in mind that at the most, with exceptions, banks will give us 80% of this value. Consult your case with Futur Finances without obligation, to analyse if you can reach 100%.
6.- With the FEIN, let’s check that the agreement is fulfilled on paper. We have the right to review the draft three days before the signature before a notary. Always exercise this right and ask the notary or officer to answer any questions that may arise.
7.- On the day of the signature you have to go with time and with the work done. If an independent expert or a trusted person with financial knowledge can accompany us, much better. Signing a mortgage with knowledge of the cause is the best way to avoid problems with the bank in later years. Our collaborators come to the firm with the client to advise him properly.
This post is also available in: Español