Even before starting the search for a specific object, you should visit the bank to consult. An initial consultation with a home loan provider can be beneficial, regardless of whether you succeed in getting a loan.
Associative photo from pixabay.com
. Edvinas Jurevičius, head of retail banking at Luminor, shares several questions that early consultation can help resolve.
Will explain what benefits can be applied
After consulting with the bank, you can learn more about the two main financial support programs in Lithuania and find out whether they can be applied to you.
“One of them provides a financial incentive for young families purchasing their first home in the regions, the other is a housing loan that is partially compensated by the state, using which you can purchase a home throughout Lithuania. Using these programs, 15-30% of the costs are subsidized. received housing loans”, says the representative of Luminor bank.
It will help to choose the type of interest
A home loan specialist can also advise on the most suitable interest rate for you, says the expert.
“There are two types of interest: variable interest rate and fixed interest rate. The first consists of a variable interest base of 3, 6 or 12 months EURIBOR and to it is added an individually determined bank interest margin. The second can be set for a period of up to 5 years. After that, the interest is automatically changed to variable interest or a fixed fixed interest rate is set again,” says E. Jurevičius.
Because different types of interest have their own advantages and disadvantages, they may be more favorable to people with different needs – a financial advisor can help you choose.
It will help you understand what you need to know about credit history
It is also worth consulting with a specialist in order to better understand your credit history and its meaning, as it can determine whether a loan will be granted at all.
“From the credit history, you can see how a person has met all the financial obligations he has ever had. Before granting you a loan, the bank will need to get acquainted with it in order to be sure that the person will be able to repay the borrowed amount sustainably and on time,” says the expert.
According to E. Jurevičius, if the bank sees that a person does not fulfill his financial obligations on time or has debts, it will be more difficult for him to get a loan of the desired size. In this case, a specialist can help you figure out how to proceed so that the credit history does not get in the way in the future.
Will explain what documents are needed for the application
After getting to know your individual situation, the specialist can advise you on what documents will be needed to obtain a home loan. E. Jurevičius notes that the process of granting a loan usually goes more smoothly if the client receives the necessary declarations and statements in advance and only then applies to the bank. If you apply for a loan without the necessary documents, the procedure takes longer.
“For example, regardless of whether you are self-employed or under an employment contract, banks will always look into the sustainability of your income. Also, if you apply for a loan with your spouse or partner, the bank will take into account his or her financial obligations and credit history. Some additional documents may be required to show all this,” says the expert.
They will help you calculate the installation budget and advise you on insurance
The real estate and financial markets are constantly changing and not everyone is able to be interested in their current affairs. The bank’s financial advisors are well-acquainted with current trends, monitor the situation of existing customers, and therefore can specifically answer questions that concern you, for example, about home insurance or preliminary installation costs.
“A potential lender can tell you how the price, type, and other factors may depend on what taxes you may have to pay, and will also estimate how much funds may be required to furnish the home as a minimum. In addition, the mandatory housing insurance premiums will depend on the type of housing structure and equipment, the preliminary amount of which will be assessed by a financial advisor,” says the expert.
