How to thwart the pitfalls of home equity – real estate loan
That’s it ! You have made the decision to acquire a property as a residential use as a principal residence, or as an investment to collect long-term additional income of the property type from rent received? Or in the optics to carry out work for the improvement of your habitat?
All the aforementioned ideas require for their realization. The mortgage is the most suitable for its types of projects. However, we must be careful to avoid the pitfalls of home loans!
Real estate credit, weapon of seduction
It should be noted that banking organizations have the product of appeal mortgage credit to attract new customers in their establishment. A strategy benefiting the banking organization allowing a sorting upstream, and that all depending on the potential profit per customer.
The eligibility criteria in place are usually the amount of household income and the capacity of the potential savings of the client(s). Of course, the domiciliation of wages is mandatory, and also the establishment of one or more programmed savings.
Or the subscription to various products such as home insurance, auto, or consumer credit, etc. This translates into getting the best interest rate for the from his real estate credit in exchange for subscribing on the long term to various services offered by the bank.
A cost-effective formula for the banks of the bank!
Play the competition for credit
When a bank account is opened for the establishment of a mortgage is that the financial profile of borrowers is profitable through its ability to repay the loan, to consume paid services such as credit card, etc. Conversely, the mortgage loan is refused upstream, and the opening of account does not take place. If the customer is profitable, then he can afford the luxury of playing the competition.
In order to be advised at best on the most advantageous financial arrangement, and most adapted to your real estate project, it is recommended to call a broker. It is not necessarily the current bank of the client(s) that will make the best proposal of at the best cost. So you have to play the competition. That is to say, undertake the tedious step of knocking on the doors of all banks to get the best interest rate.
The broker is an intermediary in banking operations and payment services (IOBSP) who knows all aspects of mortgage lending and, it is a real guide to getting a loan buyout. He intervenes by representing the case of of his customers with all the biggest banks of the market. In other words, it makes the competition for its borrowing customers and chooses the bank or financial institution that makes the proposal of the most advantageous in terms of rates, etc.