The choice of the bank in which you will take out a mortgage depends on how favorable lending terms will be offered. When choosing a suitable bank, you need to consider the following.
Instructions
Step 1
First of all, pay attention to the mortgage interest rate. Of course, the lower it is, the better for you.
Step 2
Check if you have to deal with a fixed or floating interest rate. Floating changes over time. For example, it can be set in the range from 11 to 15%, and the borrower, accordingly, expects the lower level, while the bank focuses on the upper one. Although the lower level of interest rates in this case looks very attractive, such a transaction can be risky.
Step 3
When choosing a bank for a mortgage, find out the amount of the down payment. Usually it is 30% of the cost of housing. The exact same percentage is set by the Government of the Russian Federation. It happens that some banks to attract customers reduce the amount of the initial payment. However, this usually increases the interest rate on the loan. You should compare the level of interest rate and the amount of the down payment.
Step 4
When choosing a mortgage bank, ask if you can repay the loan ahead of schedule in the future.
Step 5
Ask what the consequences of a late payment in a particular mortgage bank are. Perhaps this is a penalty fee, or maybe the termination of the contract with the eviction of the insolvent creditor.
Step 6
Specify the term for which the bank will provide a mortgage loan. There are not many institutions willing to issue mortgage loans for more than 20 years. The most common term is 10-15 years.
Step 7
In addition, when making a choice between different mortgage banks, consider the processing time for your loan application. It can be either 1 day or 30.
