First, it is important to look over all bank offers and read their terms carefully. In most cases, the interest rates are readily available. What you need to pay attention to here is whether you are getting a good deal or not. It is enough to have the word interest rate in front of the word interest rate, and there is a danger of not reaching the interest rate out of the blue. In addition to the interest rate, other bank conditions and fees may be attached to the mortgage. For example, you may be required to open a checking account.
When taking out a mortgage loan, procedures with the government (real estate evaluation, land registry certificate) are unavoidable. However, many banks will take care of this for you, saving you money and time. If you have the option of paying off part of your mortgage early (e.g., inheritance) without incurring additional fees, there is another advantage. Before signing a reservation contract for a property, you need to know perfectly how much mortgage you can afford and at the same time all the terms of the loan. [Some banks offer interest rate guarantees that guarantee that the terms of the loan will not change during the mortgage negotiation period. This is always for a fixed period of time (e.g., 20 days)
Another term you may see is fixation. This means that the interest rate agreed upon with the bank remains unchanged for a fixed period of time (from one to five years, or as long as you continue to make repayments). It is best to discuss the type of fixation that is best for you directly with your bank or financial advisor. At the end of the fixed term, the loan is free of emergency payments. This is another advantage of a shorter fixed term.
Repayments to the bank can be made in one of two ways: by making regular repayments of the same amount, or by gradually decreasing the amount due from the highest amount (gradual repayment), or by increasing the amount due from the lowest amount (gradual repayment). Proof of income (two recent tax returns) and identification are required to obtain a mortgage. Insurance is required for new properties.