It has become more difficult to be allowed to borrow in the bank. Thus, there is another form of borrowing that has emerged again. We explain the development here.
The mortgage loan is back in earnest. And this in the wake of many buyers getting no from the banks and mortgage lenders if they do not have the necessary funds available.
Therefore, we are also finding that realtors are referring buyers to mortgage companies where a loan is easier to get through. We’ll take you through all the aspects here.
The expensive loans
There is a good reason why you always go to the mortgage lenders first, because the loan is much cheaper. For that very reason, there are also great demands on those who must record it. Mortgage mortgages, on the other hand, are somewhat more expensive, with interest rates ranging from 8-9%, while on a 30-year fixed-rate mortgage, they are just over 4%.
Who chooses it
The fact that more and more people still choose a mortgage loan is because they have no other options. The mortgages have tightened the requirements, and look very square on both the borrower and the property. Therefore, there is not much that can be rejected in the bank or the mortgage institution.
So from the time the mortgage bond market was almost dead, demand is now increasing explosively. This can be felt both on the rise in the new mortgage deeds issued, but also on the addition of new mortgage deeds.
Collaboration with the Realtors
It can be really difficult for a real estate agent to sell a house if the buyers are not allowed to lend to it. Therefore, it is also in the interest of real estate agents to get loans through – and thus home sales.
Several real estate chains have entered into informal collaborations with mortgage letter companies.
The banks not only say no in relation to the borrower’s finances and availability, but also from the viewpoint of the property. They look a lot at whether the area is characterized by many relocations, whether there are several empty houses that have long lives and whether there are long distances between the workplaces. All of this pulls down the likelihood of being allowed to take out a loan.
Mortgage loan as an option
If the bank says no, many real estate agents today propose mortgage loans. The mortgage loan is far cheaper and therefore in the vast majority of cases it will be the first priority. But if a bank loan is simply not an option for the given buyer, a mortgage loan may be their rescue. In this way, the mortgages can also help to settle the properties that do not meet the requirements of the mortgage banks.
A few years back, the banks closed down on mortgage loans because they were associated with heavy losses when it was revealed that many homes were financed at overpricing. But after the financial crisis, a steady rise in prices has come again, and the mortgage loan can thus be a really nice option, for families or homes that do not live up to the bank’s requirements.