The task of choosing a mortgage is important, and even more so when the country’s banks are offering the cheapest liens in history. This is excellent news for those who want to buy a home.
It is essential to manage the information in order to make the best decision and take advantage of this financing alternative. Below we will guide you so that you can choose the best mortgage for you.
Determining factors when choosing a mortgage
The right choice of mortgage lies in paying attention to three factors: the applicant’s profile and solvency, the economic context and the purpose of the purchase.
Analysts point out that, if the aforementioned factors are well considered, the decision will be the most appropriate and will meet the needs, possibilities and expectations of the buyer.
Documentation that will be required
As we have already stated, information management is important, and this includes knowing what documents are needed to apply for a mortgage. In this sense, the following requirements are common:
– Valid National Identity Document (DNI).
– Application document signed by all parties involved.
– Work history of no more than 30 days of antiquity.
– Last income tax return.
– Movements of bank account of the last months.
– Deed of sale.
– Record of the last 3 paid receipts of the loans and cards.
– Paid receipt of the contribution of the current year (IBI urban).
In case of being salaried:
– Last 3 payroll records.
– Contract of employment.
For self-employed:
– Quarterly declarations of IRPF (4 last).
– Quarterly VAT declarations (last 4).
And as complement, they can also be needed:
– Scripture of matrimonial capitulations.
– Sentence of separation and regulating agreement.
– Deposit contract.
Now then, it is important to bear in mind that the entities that process mortgages can vary certain requirements, but they will coincide, most of the times, with the above mentioned.
Types of mortgages
According to the latest data from the National Statistics Institute (INE), for mortgages, 50.8% of the variable rate and 49.2% of the fixed rate are handled in their analyses.
These two are basically structured in:
– Non-variable interest throughout the life of the loan, for the case of the fixed mortgage.
– Variable interest at some point in time, in the case of the variable mortgage. In most variable interest loans an initial term is established (the first year or the first six months) in which the interest rate is fixed.
– There is also the case of mixed mortgages, where the interest rate remains fixed for an initial period of more than 1 year and then becomes variable.
The recommendation when deciding on an option is not to go against our own profile and our own economic circumstances. The fixed rate is suitable for those who are not looking for risks, and the variable rate is better suited to younger people, whose potential for professional and salary growth in their jobs is higher, assuming the risks of volatility.
Now is a good time to take out a mortgage
Interest rates and home prices point to mortgages as one of the best options today. It is time to sit down and make one of the most important decisions in life.
It is vital to analyze well the financial situation, in the medium and long term, in conjunction with the knowledge of the market, so that the projection is accurate and realistic in relation to the obligations that derive from it.
The best thing is to resort to experts in the real estate area to obtain integral advice and thus to take a firm and sure step towards the goal we wish to crystallize.
