The use of a mortgage loan is often necessary for the purchase of a property since it strengthens our purchasing power, expanding our options at the same time. However, there are points that we must pay attention to in order to make the ideal choice: the one that will be more profitable for us in the long run, while making sure that our daily life is not significantly disrupted during the repayment period.

Buying a property with a mortgage needs a lot of attention to the fine print. Choosing a mortgage loan with a fixed interest rate allows us to maintain the same, fixed interest rate either for the entire duration of the loan or for a specific initial period. Unlike fixed, the floating rate seemingly provides more flexibility, but incurs a small additional cost over time. Depending on the financial benefits and repayment ability available to each interested party, the guidelines for choosing the appropriate loan are created. It should be noted here that today, anyone watching the rise in ECB interest rates can compare floating to fixed rates, which act as a buffer against the uncertainty caused by rising inflation and the upward trend in floating rates.

Choosing the right loan term is very important in the real estate market. A relatively short term usually translates into more money saved, as it comes with lower interest. However, in cases where the interested party has the only possibility of long-term repayment with lower installments, it is recommended to choose a longer term loan, even if this turns out to be more expensive in the long run. The monthly income combined with the fixed monthly expenses are in most cases a reliable comparative factor for choosing the appropriate plan.

It is important to ensure that a starting capital is already in place before proceeding to the next step. Initial capital for a larger down payment implies, in most cases, a higher probability of a loan being approved. Banks know that an initial equity payment that exceeds 30% of the value of the property reduces the chances of defaulting on the total amount. Few banks will accept to finance a mortgage if at least 20% of the value of the property is not available at the time of application, although this possibility is not excluded in cases where the interested party meets the income criteria or can document in other ways (liquid assets assets and real estate) his creditworthiness. The real estate market moves and changes, and so do the conditions that govern it.

The executives of INVESTA Real Estate – Larissa properties, cooperate with banking organizations and are regularly trained by official bank executives in issuing bank loans. For more information about bank loans as well as for the necessary supporting documents for loan pre-approval, contact us at 2411104111.

Thanasis Stamou is the director of INVESTA Real Estate - Larissa real estate agency. He has experience in the field of real estate since 2005. He is a real estate agent, appraiser, negotiator and investment advisor. It specializes in the training of Consultants