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.