What to look for when taking a loanApril 19th, 2012
Prior to the drawdown of the loan you should check your credit ability, find out how much is the interest and the amount of the installments. It should also calculate the costs associated with purchasing real estate: notarial, judicial, and other credit related costs. By analyzing the costs associated with the drawdown of the loan, pay attention not only to interest and bank charges, but also the fees that we incur in the process of repayment. We should watch out for promotional rates being in force during the first months of repayment. After the promotional period, the amount of installments and interest increase. Let’s not forget that the loan will be repaid over a long period of time. So it is not worth to sign a contract, following only a brief promotion. Depending on the bank you will pay for: insurance until mortgage (so-called transitional or bridge insurance), property valuation, legal and notarial formalities. In some cases, banks may require the assignment of rights to life insurance. After signing the loan agreement, we may incur costs related to early repayment of the loan or the currency exchange. Such operations in some banks are free of charge, others do not pay for about 0.5-1.5 percent. amount of the outstanding loan.