After years of renting you are now done with it. You are willing to buy your own house or apartment. You now have a stable job and you can even save money. Just a question: did you happen to win the lottery or did you marry a wealthy partner? No? Then you will usually have to take out a home loan to realize your plans. Fortunately, the time has passed that you have to dress up to visit all banks for a mortgage loan.
Nowadays it can be a lot more modern: just compare the credit providers online first. This will save you a lot of legwork, because you will quickly see who has the cheapest loans in the shop window. On our comparison page you can find the cheapest lenders. At the APR (annual percentage rate of charge) you can see from whom you pay the lowest interest and borrowing costs. So that is a good starting point to get an idea and to eliminate a number of lenders.
A mortgage loan is usually about a lot of money that is paid off over a long period of time. Sometimes you do not get out of a conversation, but you can limit how many banks you have to go to find the cheapest home loan. You can request a free quote on the lender’s websites by performing a loan simulation. You enter a number of details, such as the loan amount, your income and the term. You can generally borrow around 30% of your income. If you have a working partner, the salary can be included to take out a larger loan. In any case, you know within a few minutes how much your monthly installment will be.
You have to pay attention to a number of things: do not base your decision on 1 bank. Finally, choose a few banks that you might want to discuss. After all, the interest that you have found online is not fixed. You can negotiate, so don’t be afraid to lower the official interest. Compare also the conditions of the banks and the outstanding balance insurance and home insurance (protection of your household effects in case of fire, storm and theft) that it offers. Sometimes the bank charges you less in interest, but sometimes it earns you back with its insurance policies. You can also take out such policies somewhere else, often for considerably less money.
If your loan amount is relatively low, you can often handle it completely online. The lender does of course need certain documents, such as wage sheets, to be sure that you can pay off the loan. You can just attach it by e-mail. There are always additional costs, such as the deed costs and the fees of the notary, registration fees and possibly VAT in the case of a new-build home. But the big advantage of a mortgage loan is that discounts, premiums and tax deductions are possible. Of course you don’t want to miss out, so take the time to find the best deal for your home loan.
Buying a home or apartment is often an expensive affair. You have to use all your savings to make the purchase and in some cases that is not enough. Because it is not only about the purchase of the property, but also about the additional costs for the notary. And they can also run high. The exact amount depends on the purchase price of the property. If you do not have the money to pay the notary fees yourself, can you go somewhere else?
There are of course possibilities to raise money for the notary bill.
A first option is to borrow money from family or friends. Often it is the parents who jump in here and take on the costs. It often concerns an amount more than 10000 USD and your parents may have that savings in their account. It is of course the question whether they want to do it. You should discuss that well and make the right agreements of course. You do not want to experience financial problems afterwards.
Another option, and a little safer, is borrowing money from a bank. Even if you need a home loan and an additional loan, you must be able to pay off both amounts each month. You may know you no more than 1/3 of your income to spend on term loans. If you come close with these loans then there is no problem in itself. You can always check with a bank about the possibilities. Then take all information from your current income and expenses with you so that the bank can make the necessary calculations.
To borrow money for notary fees you may have to take out a personal loan.
There is no other type of loan that you can take for this. So think carefully about whether you want it this way. And otherwise looking for the loan with the best conditions, so that you can keep the costs down. Paying a personal loan for notary fees is therefore a great idea.
The bank where you borrow will naturally want to view your financial situation. What are your current income and expenses. You can, of course, borrow with your partner to purchase a home. Then you can put both income together and you have a larger basis for borrowing. That will certainly improve your file if you approach a bank. Of course you don’t have to go to an office immediately. You can also perform the first calculations via the internet.
In the context of a lease, the presence of a ” bank guarantee ” can often be required by the lessor or the agency that represents it. This deposit must be able, in case of unpaid rent for example or damage in the property, to refund the amounts requested.
What are the particularities of the bank guarantee? How can an organization set up a bank guarantee for you? What exactly is this role? What are the advantages and disadvantages of this type of bond? All the answers to these questions in the following lines.
The bank guarantee in a few words
In case of default of the tenant as said in the introduction of this article, the bank guarantee must be able to repay the amounts requested. But unlike a simple guarantor (a natural person) or a joint surety (often the State or a public body), the bank guarantee is no other than a specific bank which then supports the lessee in access to housing, renting or buying real estate.
The advantages and disadvantages to know about the bank guarantee
The advantages of the bank guarantee are therefore numerous. First, the vast majority of current donors require a strong bond to accept the establishment of a lease for example, and what better than a bank to provide all the necessary guarantees. Another advantage of such a system, linked to the previous one, for a tenant: your file will earn more points from a lessor if you can provide evidence of the support of your bank.
Concerning the inconveniences, which are also to be taken into account : the banking establishment still requires a large sum of money in availability on your bank account, in order that this same bank has a guarantee in case of funds to be refunded. Then, the closing of a bank guarantee file can sometimes be long and tedious, very administrative say rather. Disadvantages that must be considered, but are much less important than all the advantages mentioned above.
Then you have to study the different options available to you and see if the use of a bank guarantee can meet your different expectations.