Mortgage lending: Five tips advisors should give their clients

Thursday, 21.09.17 , written by Anja Schlicht Future homeowners take a lot of money for their dream home. Often, the credit is in the six-digit range. Some mistakes, however, make construction financing much more expensive. But with the right tips, consultants can warn their customers of pitfalls and make a name for themselves as a competent partner. >

Fehler bei der Baufinanzierung vermeiden The dream of owning a home is shared by many people

While savers are suffering from the low interest rate phase, this ensures that borrowers enjoy their loans thanks to very favorable interest rates. Many people are now choosing mortgages to help them build or buy their own house. However, future homeowners do not seldom fall into stumbling blocks . In the worst case, this leads to the dream of your own home breaking and you are sitting on a huge mountain of debt. Which expensive mistakes can happen with the mortgage lending , is summarized in the current financial test magazine (10/2017).

High repayment and long term agreement

Thanks to the low interest rates, borrowers can also borrow more money. At the same time, however, if they set a low repayment, for example, of one percent, the loan has only been repaid in decades. However, it is advisable to make the financial burden of the loan as short as possible. Because no one can say how interest rates will develop in the future. Therefore, a high repayment of two to three percent makes sense to be relatively quickly debt-free.

In addition, the earliest possible interest rate commitment is recommended. Only then can borrowers secure the good interest rates for the next 20 or 30 years. A look at state subsidies for building or buying a house can not hurt either.

Consider additional financial burden due to additional costs

Among the important questions that future homeowners should ask before completing a mortgage, which counts on the additional costs . Expenditure on land transfer tax, notary, land register entry and brokers can account for more than ten percent of the purchase price. If these costs are not taken into account, the financing plan gets cracked right at the beginning.

Last but not least, many borrowers are surprised by additional costs due to so-called provisioning rates. These are incurred if they do not call the loan in one fell swoop, but in stages depending on the construction progress. On average, the interest on the money the bank withholds is three percent. Therefore, it should be clarified in advance with the financial institution, as of which point the provisioning interest accrues. Tip: Point your customers to possible pitfalls in their mortgage lending. In this way, you can profile yourself as a competent contact person trusted by customers. Are you looking for new customers interested in consulting? Then purchase our cheap leads in the Construction Mortgage division and expand your customer base.

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