MORTGAGES IN SPAIN

Home buying is an important process of research and time. In addition to trying the best home that meets you needs to find to find the right mortgage is just as important. Before you start house hunting, you must do the following:

* Determine your household budget and how much you can spend each month on a mortgage loan.
* Get free copies of your credit report.
* Become familiar with home loan financing options and associated variables such as terms, interest, fees, points, etc.

After the above steps, here are the next steps to follow in your home financing quest.

1. Finance your dream home

Your home is probably your largest financial investment. Home purchase is a complex process that a methodical manageable process must make it easy to buy a house. The best approach is to separate the different processes into manageable tasks. The following steps deal with the discovery of the best mortgage loan options.

2. Know how much you can afford

Before you begin your journey home, you should consider how much house you can afford. One of the steps that you can do is go to a mortgage broker or lender and pre-qualified for a mortgage loan. Pre-qualification allows you to realistic price ranges to fit your budget focus. To qualify for a mortgage, you need off a home loan application, some information and documents, the lender, you are advised will require a full pre-selection. Also make sure your credit report and that all information contained within properly.

3. Types of mortgage loans

The height of the house you can buy depends on your mortgage loan term and interest rate. The traditional terms for mortgages are 15 or 30 years, has been done in which time payments. The mortgage can be fixed (the interest rate stays the same over the loan term) or adjustable (fluctuates with market conditions).

By far the most popular of the thirty-year mortgage is fixed rate. The longer-term, you can lower your monthly payment, while the fixed rate provides stability over the loan life. These loans are ideal for people who plan on living in their home for 7 years or longer. The disadvantages to 30 year mortgages are low principal payments in the early years, and the risk that mortgage interest rates during the loan term. Still, if your credit score and credit history is good, and you have adequate income, you can usually take you to refinance a mortgage if mortgage rates fall.

Meanwhile, cuts a 15-year fixed-rate decreases the total interest payments and principal payments is increasing mortgage. The monthly payments are much higher than a 30-year fixed loan because the term is shorter.

An adjustable rate mortgage (ARM) might be worth a look, look in, if you to stay no longer than three years in the home. Low initial interest rates lower than fixed-rate mortgages. But usually after one year, prices are pegged to the market and are subject to possible rate hikes. Never again an adjustable rate mortgage if your income is not support in future interest rate increases, thus improving your monthly payments.

4. Interest points

A mortgage point is that interest is payable in advance to reduce the mortgage for a loan. One point equals 1% of the total loan amount. Normally loan 1 point is 1 / 8 of 1% on the home's rate. Points are not cheap, you have to make a decision whether it makes sense to pay for the extra points.

Choosing the right home loan mortgage financing that fits your unique financial needs is critical to your long term financial success. Following the above tips will help you make the right decisions regarding your mortgage.

MORTGAGES IN SPAIN

Many guides about, mortgage loan buying property in Spain assume that potential buyers actually the money available, but if you are considering buying a house in Spain because you're working from here, or because you just invest in real estate in Spain, You might want to consider live out a mortgage with a Spanish bank. Whether you buy a house in Spain, a holiday on the Costa Blanca or a new home in Spain, taking out a Spanish mortgage may be the right solution for you.

Interest rates in Spain are different, but generally much lower than in Great Britain, and competition between Spanish banks is fierce.If you are to be built in a property still interested, you can see that the designers already signed a contract with a certain Spanish bank for all mortgages and you are left with little else. If not, you would be well advised to shop around for the best offer.

Do not accept the first offer. Request offer a copy of a bank and then take it to another bank to see if they can improve the offer - often. Then take the improved offer back to the original bank - you can experience a pleasant surprise! It may be worthwhile use of services such as Orange Finance, which do just that in your name.

It is expected the ability to pay (ie pay slips of last 3 months bank statements for the last 6 months or, if you are self-prove, copies of your last 3 years accounts (with Auditor's stamp) and copies of you last 12 months of the fiscal bank statements and your last 6 months personal bank statements). Proof of

payment on your ability to get paid with revenue from the rental of the property are based, are not considered acquired by Spanish banks. See our full list of required documents for a mortgage with a Spanish bank for residents and non-residents apply.

If you are not a legal resident in this country, then you may be asked to provide an Aval. This is usually someone based in Spain who agree to pay in case of you not in the situation. They are also required to obtain a NIE (Numerous DE Identification para Extraneous) which, like an ID number everyone needs (residents and foreigners) in order to buy or sell property in Spain.

Most Spanish banks currently offer mortgages of 60-80% property price over 5, 10, 15 or 20 years, depending on whether you are a resident here or not. Some banks offer 100%. The current variable interest rate is about 4.7%, and there is usually an early impairment charge of approximately 1%. See Ranking of Spanish banks, and also our section on mortgages for non-residents in Spain.

The debt should not exceed 35% of your net monthly income. Banks use the following variables to your ability to pay off the mortgage to be determined:

Existing liabilities (existing loan or mortgage, monthly maintenance agreements ..)
Future liabilities, including the proposed loan Present income and investment.