A Few Vital Tips for Choosing a Mortgage

Yehuda Segal
ט"ז אלול ה'תשע"ז 07/09/17
Last week a client approached me. He was trying to complete a real estate purchase, but couldn't sign the contract, because the bank declined to approve a mortgage.

Saving money and avoiding grief!

Buying a new apartment? Doing renovations? Purchasing a real estate investment? Helping your kid buy an apartment? Today it's impossible without taking out a mortgage. Taking out a mortgage is a complex endeavor, which requires caution and expertise from the start. A mortgage accompanies you for many years to come.

You might be asking: what is so serious about a mortgage? We'll go to the bank and arrange one! Well, ask yourself this: whose interests does the bank put first, yours or his?

Mortgages involve several stages:

  1. Approving the amount, and purpose of the mortgage.
  2. Constructing a plan for repayment.
  3. Handling the demanding bureaucratic process.
  4. The execution.

Getting objective, impartial advice before taking out a mortgage is a must. You want to get the best possible arrangement, under the most lucrative terms, with the lowest possible interest.

Let's begin with understanding the initial approval process:

Last week a client approached me. He was trying to complete a real estate purchase, but couldn't sign the contract, because the bank declined to approve a mortgage.

First of all, the situation of the client in this particular bank was not great since he had already been turned down. Even if I had merely helped him get approval, everything would now be bumpier, since his file now had a red X on it. For instance, the bank was likely to impose higher interest rates, in the view that "We did you a favor even approving the mortgage".

In spite of the difficult situation of the client, we arranged to meet, and the client presented me with all the relevant paperwork. We devised a strategy to pay off loans, etc. I then sat down for a long meeting with the bank manager, where I explained my client's point of view, and told him of our financial strategy.

The mortgage request was re-sent, and approved for a higher sum than we originally counted on. Which was great, because it meant the client would not need to take out several smaller loans. The client got the green light to sign a contract and continue the process.

This is why it is so important to get an objective advisor from the start. Someone who will see the papers, decide which bank to approach, and how to go about things to increase the likelihood of getting the highest potential sum approved.

MV mortgages will plan and execute the best-fitting mortgage for you.

Call MV Mortgages: 0587431553

This article first appeared in Hebrew.

With Heaven's help, Yehuda Segal

YSMehadrinews@Gmail.com

תגובות

* אין לשלוח תגובות הכוללות מידע המפר את תנאי השימוש באתר, לרבות דברי הסתה, דיבה ולשון הרע.