10 Tips to Negotiate the Best Mortgage

If you've found the home of your dreams, you want to know how to finance it. Access to a mortgage can be a complicated decision and one which requires some guidelines to avoid surprises in the future.

1. Save
When applying for a mortgage should provide initial savings. Note that you must pay your pocket at least 20% of property value and 10% for expenses (notary, agency, property registration and valuation).

2. Make sure your profile is suitable
Before you continue with your search, make sure you are eligible to access a mortgage. Broadly speaking, the monthly loan should not exceed 35% of your monthly income and you must show some job security, among others.

3. Compare mortgages from banks
Before a bank make a decision to accept you as a client, select the mortgage that best can be adjusted to your profile, depending on your needs and preferences. Do not be afraid to ask questions and evaluate the different mortgages on the market. It will also be helpful to visit a comparator free personalized mortgage to help you find the ones that best fit your profile.

4. Negotiate the mortgage with the bank
Remember that mortgages are not closed products; everything is negotiable according to your profile. Do not hesitate to refer to the finance improvements in the interest rate, repayment terms, and fees. But only if you have a good financial profile, savings, and income, stable ... - will be interesting for banks and can negotiate the terms of the mortgage.

5. Appraised value and purchase price
Assesses the possible difference between the appraised value and the price of the property to find a mortgage because banks do not tend to finance more than 80% of property valuation, unless additional security contributions as collateral. Please note that banks do not use the same appraisal companies and some higher priced than others. If an appraisal is not what you expected, do not hesitate to ask another appraiser or other financial institution.

6. Less APR mortgage is not always the cheapest
The APR is not always indicative of the mortgage cheaper. You must take into account other aspects as, for example, you might want more than a mortgage with a low monthly fee or offer you more flexibility.

7. Mortgage-related products
A low differential may be synonymous with many mortgage-related products. Ask what they are and how much it should pay for related products like life insurance or unemployment, pension plans and credit cards. Can be much more expensive the price of the mortgage.

8. Beware the land interest
Give much attention to the floor of the mortgage interest. Many mortgage loans are promoted with low spreads really look very attractive. Make sure the mortgage does not have financial derivatives such as swaps, which in recent years have caused many problems for users. These are known as unfair mortgages.

9. While trading commissions
The commissions are negotiable with the bank. Make sure the negotiable right from the beginning to avoid unpleasant surprises later. Two of these committees are especially important in the future when we want to switch banks to improve mortgage conditions: commission and cancellation. And remember that it is important to have access to the mortgage in good standing.

10. Negotiate the flexibility of the mortgage
A mortgage with grace periods will allow, for example, for a time to address situations of less stability. In a mortgage, depending on your needs, you may access flexibility options both at the beginning of the loan and during the life of the mortgage.

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