What you should to know before to borrow a home loan?

Before we start talking about the specifics of a home loan first let me explain in a few words exactly what it is. A home loan is a loan that is taken by the bank to acquire immovable property ( for example house or apartment). This is a simple definition of home loan. Now let me tell you, what you should know before to borrow a home loan.

 There are several key features that should be taken into consideration when you choosing a home loan. It should be borne in mind that most banks do not grant the full amount needed to purchase a property and the amount (credit) equal to 60 to 90% (usually 80%) of the value of the property. In  most cases you will need an extra financing. Of course, it is possible if you meet the requirements of the bank's income can apply for additional funding as examples of consumer credit. Usually, however, additional funding has a higher interest rate. There are many banks that offer very attractive promotions of home loans. Overall promotional offers or offers with grace periods are characterized by lower monthly payments during the first six months to three years of the repayment schedule of the loan. However, combined with a higher interest rate than the default bids for the 10, 15 or 20 years. You must be extremely careful! My advice is, if you can do not take advantage of such offers in order to avoid paying higher interest rates, and hence more contributions in the future. The promotional offers of home loans are for buyers who expect almost certainly higher future income. The promotions have their advantages and disadvantages and can easily confuse you.

 The most important thing when you borrow a home loan is to choose the right bank! But how to choose a bank? Unfortunately it is very difficult to compare multiple offers and conditions of the banks on home loans. Each of them will try to convince you that there are the best conditions, representing only the good sides of the credit product. There are a few rules, however, that if we follow can help us to get a better solution. First check and research conditions at least three banks, possibly five. Second, the fact that, your friend or relative working in a bank does not mean that you have to be "settle with credit." Or if you do not mean it's a good credit for you. He just sells you what the bank offers. Remember that you will repay the loan, and not someone else. Third, look for a bank that can offer a lower fee for renegotiating loans and lower fee for early repayment. Obviously, such a bank intends to keep you as a customer by maintaining a competitive level of the product, and not by virtue of the signed contract, just mentioning fees and interest. Finally, check out the various contracts and installments. Find other fees that you charge. Only that it will offer a one time fee, and another has, it does not mean you will not be billed. Understand that the bank can just give it "served" at the last minute. 

 Choosing a bank or lending institution for your home loan is not an easy task. To make the right choice you will have to be very well informed about the home loan contracts available on the market. And this takes time! So in the end will give you the best advice! Remember it, the smartest thing you can do is to trust the good credit intermediary.