For many, owning a home is one of the most important goals they set in their lives. And for most people, getting a mortgage is one of the steps toward achieving it. If you’re thinking about buying an apartment and wondering how to get started, What is a mortgage loan you’ve come to the right place!
In the following article, we’ll show you what a mortgage loan is, how it works, and other important details. Keep reading to learn more !
What is a mortgage loan?
A mortgage loan is financing provided by banks or other institutions for the purchase of a property. It is characterized as a long-term loan, with terms ranging from 5 to 30 years, estonia phone number library and with monthly payments that include the principal borrowed plus established interest.
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Types of mortgage loans
1. Traditional mortgage loan
This financing is provided by financial institutions in Peru for real estate purchases, using the acquired property as collateral. Applicants can access various conditions within traditional mortgage loans, such as fixed, variable, or mixed interest rates, makes products for other companies as well as choose between soles or dollars according to their needs.
2. Mivivienda mortgage loan
The Mivivienda Mortgage Loan is aimed at those seeking their first apartment with state support. This program offers incentives such as the Good Payer Bonus and preferential interest rate conditions. Available amounts depend on the property’s location and require meeting certain income criteria and not owning any other assets.
3. Flexible mortgage loan
This option allows the monthly payment to be modified according to the borrower’s financial capacity, bgb directory providing greater flexibility. It is used for purchase, construction, or remodeling, with adjustable terms and amounts. Some programs include subsidies and the option to change the financing currency according to the client’s needs.
Who usually applies for a mortgage loan?
Most people take out a mortgage. This is necessary if you can’t afford to pay the full cost of the property on your own. There are also some cases in which it’s worth taking out a mortgage on a home , even if you have the money to pay for the new property. For example, investors sometimes mortgage properties to free up funds for other investments.
What is the difference between a loan and a mortgage?
As you know, a loan is a financial transaction in which an entity gives a sum of money to an applicant, who agrees to repay it within a specified period.
A loan, on the other hand, is a type of loanspecifically designed for the purchase of real estate and is secured by the property itself: the acquired property. This means that, in the event of default, the lender can foreclose on the mortgage and recover its money through the sale.
What documents do you need to obtain a mortgage loan?
Among the documents you’ll need to present are those that identify you and prove your monthly income. These may vary depending on the lender you apply for the loan from. However, the basic documents required to obtain a mortgage loan are as follows:
- National Identity Document (DNI)
- Documents that certify your monthly income
- Self-assessment documents
- Certificate of seniority at work
- Receipts for basic services, such as telephone, electricity, and water
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How to apply for a mortgage loan?
Below, we show you some of the steps to apply for a mortgage loan :
- Determine what type of home you want. Consider factors such as size, number of bedrooms, amenities, location, and more.
- Find out if the owner is a natural person or a real estate company.
- Go to the bank you’ve chosen and ask for an evaluation. A counselor will review your credit history and your ability to make payments, and will request the necessary information based on the evaluation.
- Set the down payment, if the outcome is favorable, and then schedule the corresponding mortgage disbursement .
So far, we’ve seen what a mortgage loan is , how it’s applied for, what you need to apply for it, and more. The truth is, it’s a viable option if you want to buy an apartment but don’t have all the cash you need.
Don’t forget that acquiring real estate is a great investment opportunity thanks to the capital gains, among other benefits. We hope this information has been very useful!
Edifica Real Estate has over 15 years of experience developing projects in the most established districts of Lima and other cities. You’ll find the best apartments and offices. If you’d like more information about our projects, please contact us .