About 8 out of 10 buyers use a mortgage to finance their real estate project. If you also want to take advantage of the mortgage for the purchase of your main or secondary residence, try to prepare your application well. Here are 3 simple tips to get a home loan at the best rate.
Take care of your borrower profile
As part of the mortgage search, it is essential to make a “good impression” first. Take care of your borrower profile. To easily convince a credit institution, you must:
- have a stable occupational status;
- constitute a significant personal contribution;
- Correctly assess your debt capacity based on your income;
- Ensure the suitability of your real estate project.
These are the main characteristics that banks will review when examining your file. It allows them to get a good view of your application and reduce the risk to a minimum.
Encouraging competition between banks
Mortgage granting criteria as well as borrowing terms can vary greatly from one bank to another. Depending on your borrower profile, personal contribution and real estate project, not all lending institutions will have the same attitude towards you. This is why it makes sense to have competition. Above all, don’t limit yourself to the first banking institution that gives you a positive response. Competition can generate significant savings.
Negotiate Deposit Fee
When you approach a bank for a mortgage, application fees are generally unavoidable. This is a kind of reward from the institution for the efforts you put in and the time you spend processing your application. The bank needs to be considered, because it takes time to examine your situation in order to support you and make a personalized offer for you. Note, however, that this commercial invoice is negotiable. Negotiation becomes easier if you file well.
Germann graduated in journalistic communication, completed two years of philosophical studies and served as editor-in-chief of a local bi-annual magazine. He started writing online in July 2018, and is currently a Project Manager and Trainer in the field.