In a previous article we quickly saw what a mortgage loan is, this time we want to explain step by step, how to apply for a mortgage loan . These steps will be very similar between the different types of financial institutions that provide this type of loan.
How to apply for a mortgage loan?
If you are interested in applying for a mortgage loan, you have two options :
A. Traditional way, directly with the bank
Step 1: Enter your request
In this option, you usually start by approaching the bank to apply for the mortgage loan. If you already have in mind a property that you want to buy and you know the value of it, it is time to approach the bank.
Step 2: Submit documents requested by the bank – Pre approval
After step 1, the bank will tell you what documents you need to present. These documents are essential to evaluate you, among your requests will be your payment slips or any other income support.
The bank will evaluate your documents, and if you meet the requirements, they will notify you that your credit has been pre-approved.
After this step, you will have an idea of the rate the bank will charge you. Here you have the option to redo steps 1 and 2 with different financial institutions, so you can compare the conditions of the mortgage loans they can provide you.
Step 3: Legal and real estate management
The bank will help you in this step and basically the following will be done:
- Study of titles: The cadastral value of the property will be requested from the seller to verify that it is in the Public Registry of Property properly registered. In addition, it will be verified that the property you want to acquire does not have any seizure, mortgage or demand.
- Appraisal of the property: Here a specialist determines the approximate value of the home you want to buy, with this information the financial entity defines how much is the maximum they can lend you.
- Evaluate property insurance: This insurance allows you to protect the property from possible damage while your mortgage loan is in force.
- Evaluate the lien release insurance : It is calculated how much the lien release insurance cost will be. This insurance covers the total payment of the debt in case of natural death or accident and total or permanent disability by the one who requested the loan.
Step 4: Signing of the mortgage contract
In this step you must present the contract of sale of the property. After that, the bank will sign the mortgage contract. Before continuing with step 5, both the buyer and the seller of the property must make certain tax payments.
Step 5: Public deed signature
As a final step, the bank issues a management check with the amount approved for your loan. In addition, the notary will prepare the public deed and will be signed by both the seller, the bank and the buyer.
B. Through a financial advisor, saving time and money.
You can enter here, complete the data of what you need and automatically see the mortgage credit options you have. All digitally, without leaving home.
You will not waste time in rows in banks. One of the financial advisorand we will give you the information you need to make the best business. It’s about lowering your accounts and doing good business.