Every citizen wants to have their own housing, and this is a completely natural desire. At the moment, the mortgage market is growing at an incredible pace. Each major city has a large number of different borrowers who are trying to provide customers with the most favorable conditions. However, this market is not as simple as it might seem. There are many pitfalls, as in the case of traditional lending. That is why it is most correct not to get involved in the mortgage, but if the situation is such that it cannot be done without, then there are several tips to make this procedure less burdensome. This is the main question - how to choose a mortgage?
Naturally, everyone understands that you should not give consent to the very first proposal from credit institutions. The mortgage lending market is open, so you can find out what conditions a particular borrower sets up without even getting up from his chair. The problem may be that the developer will limit the choice of the bank to a minimum. In principle, this practice is very unpopular, but sometimes you have to deal with it. And here the question of how to choose the right mortgage becomes even more relevant.
Do not get involved in a situation if the construction project is still at the stage of active action. This is due to the fact that construction can be stopped at any time, but you still have to pay money. It is best to take a mortgage for an apartment that has been tested by a specialized commission, that is, it is completely ready for introduction. It is worth considering and evaluating interest rates in each bank. It may well turn out that in different institutions there will be not so significant differences, but in the case of the purchase of housing, even hundredths of a percent will result in a rather impressive amount of money. It is worth remembering that, in addition to the money that you will need to pay on the mortgage, you will need funds to conclude the necessary contracts, as well as insurance.
How to choose a mortgage?
Before you finally decide on the bank in which you plan to take a mortgage loan, you need to get verified information about the institution itself and the conditions of lending in it. First of all, you need to pay attention to the value of the interest rate. It is important to understand that the interest rate is of two types: floating and fixed. Floating changes over time. Such a transaction can be very risky, as the client considers the lower limit of interest, and the credit institution - the upper one. Another significant point in deciding how to choose the right mortgage is the size of the down payment. Sometimes banks are attracted by a lower down payment, but at the same time their interest rate exceeds the rate of competitors.
An important point is the loan terms. Today, there are not many banks that are ready to lend their customers for twenty years, so long-term lending is not very popular. This attitude is due to the fact that in our country there were different times, so banks are not ready to risk their capital much to allow customers such long-term loans.
In any case, if you are interested in mortgages and mortgages, you should talk about it with friends, especially those who have already worked with one of the banks on this issue. To summarize, we can say that to begin with, we should discuss the proposals of a number of banks. No need to grab onto the first bank turned up even if the conditions there are incredibly favorable. It is better to choose long and carefully than later to regret the decision made very hastily.