All those looking forward to climb the real estate ladder for the first time are overwhelmed with vast options of property mortgage. The key is getting the best deal on your mortgage which means the cheapest and most sensible option. To have a secured mortgage is a huge factor along with government’s assistance on property buy and let.
So, when you’re shopping for real estate mortgage and actually have an idea on what’s required, it proves you’re on the right and safe track. Do consider how much you’ll pay for a property as per its legal aspects as well as complete details on survey. Check out a few important factors when reaching for property mortgage;
- Legal costs
A solicitor or licensed service provider must be appointed to manage legal aspects of investment or purchase of a property. Since substantial cost is involved that can even vary from a country to another and even between neighbourhoods within a likely metropolis, gathering details and advises is much preferred.
The lender is actually responsible to evaluate the real estate unit before accepting the loan security. Scope of evaluation depends on the type of property and lender’s credibility. Few lenders are known to conduct a drive-past valuation typical for low-risk properties. However, if you’ve plans of buying a swanky cottage in a posh neighbourhood, inspection will be more thorough, costly but guarantee optimistic outcomes.
You should be well-aware of when to rely solely on lender’s evaluation and playing your own part during survey. It’s likely you may highlight some shortcomings that even the lender overlooked such as damp marks on the walls or minor water leak in the roof. No doubt, initial survey may be costly but would save you a fortune on unexpected future repairs.
- Credit report
When getting a property mortgage, your credit score will be checked so be sure to come clean with credit card debts and bills. How much you’re actually able to pay is also a deciding factor of mortgage approval. Obtain officially approved copies of the credit report and carefully review them. It has been projected that around 40 percent reports contain errors so don’t let them set you off-track. In case you’re at doubt, have a financial expert review and rectify the report before taking any decision based on the outcomes.
- Unpaid/Outstanding credit: Before applying for mortgage, clear all outstanding bills and credit card payments or, having lower balances is also a good option.
- Credit card accounts: If you’ve pre-planned applying for property mortgage, avoid new credit card applications or ceasing current accounts as lenders may get suspicious.
- Down payments
The lesser the up-front, lower would be the loan and thus, chances of mortgage approvals are higher. On the contrary, if your credit history excels at almost everything, your application is likely to get accepted, no matter how much money you put down. But, if credit history represents a less perfect picture, amount of down payment lie somewhere between approval and rejection.
Before approaching a financial institution, be sure to get clear at a few things such as collecting enough details of the loan process in order to take an unbiased decision. Most importantly, avoid all sorts of online transactions which also mean virtual mortgage firms and portals.
- The clear concept
If you’re under the impression that mortgages are commodities and it’s all about the rate, this misconception can undermine the application procedure right from the start. In fact, finding a trusted partner; that can be a firm or a lender, is the real thing to help you navigate smoothly through a sophisticated transaction. They would offer honest advice and responsive support throughout the loan procedure.
A word of favour for one property management company in dubai for sharing insights on property mortgage. The details above are crucial for every investor especially first time applicants of property mortgage. While completely relying on online sources can be troublesome,you can conduct rate search, calculate potential loan and relay other critical information.