Once the decision to purchase a home has been made, if we do not have the full amount required at the time of purchase, a circumstance that is usually common, we have
to consider applying for a loan to a financial institution to buy the home.
The most used form of loan is the mortgage. In this type of loan a credit institution lends a certain amount of money in exchange for the obligation to
return said amount plus interest, through periodic payments.
The defining characteristic of the mortgage loan compared to other types of loans is the existence of a special guarantee, which is real property, generally a home.
This means that in the event of non-compliance with the payment obligation by the client, the financial institution will proceed to execute said guarantee and may recover, in whole or in part, the amount pending collection through the sale of the mortgaged property.
This may be done through judicial execution according to the procedure established by the Civil Procedure Law, or through an extrajudicial execution of the mortgage, with the
In any case, the existence of this additional guarantee does not imply that the client is not obliged to answer for his debt with all his assets. According to Article 1911 of the Civil Code, “the debtor responds with all his assets, present and future.” This would occur in the event that with the sale of the property the financial entity does not recover the entire amount owed. In that case it could act against other assets of the debtor.
This implies that frequently to grant a mortgage loan, financial institutions require a series of complementary guarantees of a personal nature, such as a bond or guarantee, in addition to conducting a detailed study of the person’s economic capacity, assessing aspects such as their level of income, the salary you receive, your seniority in the company, expenses or debts that you may have previously contracted and may decrease your monthly income, etc.
They are generally the banks or savings banks to which it is customary to go to request a mortgage loan, although it is necessary to take into account the existence of other entities that can also act as lenders, such as credit financial institutions regulated by the Royal Decree 692/1996, credit cooperative entities or mortgage credit companies.
In fact, any real estate agency or even an individual can offer a mortgage as long as it is not their usual activity, but in many cases they are mere intermediaries and their intervention often involves added costs or the imposition of abusive conditions in the contract. Therefore, it is advisable to be very cautious with these options and, if possible, go to registered financial entities that have the endorsement of the Banco de
To assess which is the loan that best suits the needs of each person, all the factors involved in the operation must be taken into account and not set
only at the interest rate of the loan. There are other important aspects, such as: the repayment period of the loan, the possible commissions that the entity demands, as well as other accessory obligations that the entity imposes, such as the contracting of different insurance or other financial products or the obligation to domicile payroll or
different receipts, etc.
Obviously, being a transcendent decision, it is advisable to inform yourself well and before making a decision, go to different entities and compare the different offers, not limit yourself only to the entity with which you usually have a closer relationship. Also it is necessary to be very clear what quantity is going to be requested, since
The granting of a mortgage loan involves a series of important expenses. Therefore, it is advisable to know these expenses to determine the amount of the loan and not
only the price of the house to be purchased.