Subscribing a mortgage agreement is a delicate decision, which must be avoided in a hurry. Precipitation can be fatal for the real estate buyer, if he does not bother to think about the terms and conditions that his money loan entails . Before signing, it is best to take your time and carefully review the credit offer and the type of contract.
Understanding the validation of a mortgage
Once the credit application is made and the borrower’s profile is submitted to the bank, the credit institution sends a credit offer to the customer. The sending of this offer of credit therefore means that the bank has studied the client’s file and that it has given a favorable result. Through the credit note, the bank presents its mortgage proposal to the client.
For its part, those who wish to take out a loan have 10 days to think about and follow up on the bank’s offer. It should be noted that the mortgage credit agreement only applies when there is an agreement between the two parties, that is to say between the credit institution and the borrower. As a result, the contract will not be valid until both parties have signed the file.
At the time of the subscription, the borrower will have to initial all the conditions mentioned in the credit agreement, in order to certify its acceptance. Once the agreement home loan signed, be sure to have a copy of the document.
Evaluate obligations before signing
Even if the borrower is impatient to become a homeowner, he will have to avoid rushing to sign his banker’s credit report. It should be noted that a credit agreement involves obligations of each party. Therefore, the borrower will have to make sure to analyze each condition listed in the contract step by step before validating it by signature.
It is also important for the credit applicant to check the borrowing terms. The presence of several data is essential: the amount of capital borrowed, the interest rate, the APR, the amount of the monthly payments as well as the duration of the loan. All this must be included in the contract.
To better understand the terms mentioned in the contract, it is advisable to be assisted by a broker. The mortgage agreement must also include a repayment table that will indicate all the monthly obligations that the credit applicant will have to respect after the signature of the contract.
The financial institution, for its part, has the obligation to indicate the cases of exclusion. In addition, it must clearly explain all the obligations that accompany the credit file. If, finally, the offer does not match the expectations of the credit applicant, he will be able to simulate his loan by consulting other loan proposals online.
Review the borrower insurance before signing
As with other types of loans, credit applicants are often advised to purchase loan insurance that will allow them to continue to repay the amount borrowed in the event of disability. The applicant must remain vigilant as to the terms of the insurance specified in the loan offer.
He will also have to make sure that the cover really meets his needs. Indeed, some insurance that accompany the credit may not ensure certain risks, such as an accident following the practice of a sport. To borrow in safer conditions, it may be more prudent to call a broker or consult the advice of a mortgage specialist.