The documentation that would exist for the negotiation of a mortgage loan consists of a prospectus, the binding offer and the loan agreement itself.
The booklet is a document that financial institutions are required to make available to stakeholders, which should be informed of data related to the loan and preparatory costs of the operation. You should also inquire about the following issues:
* Maximum Loan Amount.
Term of the loan.
* Frequency of payments (monthly, quarterly, etc ….)
* Interest rate. (Fixed or variable).
* Annual nominal interest rate, if the interest is fixed or the margin over the benchmark, if variable.
* Deadline for revision of interest rate.
* Arrangement fee.
* Prepayment Commission (partial and total).
* Taxes and fees (indication of the concepts.)
* Table of installments.
* Rates and fees of professionals involved in the operation
* Other expenses.
The consumer after consideration of all the information and decide which is the best deal, the bank that has been selected to develop written binding offer, previously collected information will be available in and valuation of the property mortgaged, with the customer acceptance of the costs involved charge, the minimum needed to be:
1. Capital of the loan.
2. Amortization.
3. Ordinary interest.
4. Fees and expenses charged to the borrower.
This second document, binding bid, will be delivered in writing, and the period expires 10 days after delivery. The contents of the document will be the financial terms which are then reflected in the loan agreement.
Once the offer is accepted, the loan agreement must be formalized in a deed, and notaries verify that no discrepancies exist between the financial terms of the binding offer and the financial terms of the contract document. In order to enable the client verification and analysis of the contract, is entitled to analyze it within 3 days prior to signature.
Finally for the mortgage is created and becomes effective, you must be registered in the Land Registry, for which the registrar shall verify that there are no unfair terms. Also check that previously has cleared the Stamp Tax.