The weak point of any party in a negotiation is the ignorance of the rules of the game. In a negotiation between consumer and bank on mortgage financing, normally, the consumer is the weak part, since he does not know 100% the rules of financing. So that for the forces to equalize, consumers must strive to read and understand the contract, and banks must explain to customers all those contractual clauses they do not know.
At their service, clients have tools such as E-Money that include the characteristics that will be included later in the mortgage. In this way, the E-Money must become the best ally of the consumer , in the instruction book in which to detect if the conditions of the mortgage loan offered by the entity are adequate or not according to their needs.
What is E-Money and why is it so important for the consumer?
The E-Money is a personalized information sheet on the mortgage conditions that the entity offers to the client, depending on its financial profile. This document is not binding, but it is a statement of intentions of the financing that the bank is willing to offer.
To get the E-Money the client must provide the bank with their financial data and the corresponding information of the home they wish to buy. The entity, after analyzing the profile of the client, will necessarily deliver, whenever the consumer demands it, the E-Money of the mortgage.
This sheet is not a binding offer , so it can be modified, but for this it is necessary to review the document and understand it. Only in this way can you avoid end up signing mortgages with too much linkage, with high interest rates or with clauses that make debt repayment more expensive, such as mortgage land.
In this line, the mortgage buyer Good Finance has launched the first E-Money analysis service . This is a free and limited benefit until May 15 , which allows all clients who have received a mortgage offer to obtain a valuation of the product at the hands of a financial expert.
Conclusions that a E-Money must provide
From the comparator, they point out that the sections in which the magnifying glass should be used when assessing the E-Money are interest, commissions, and bonding. In addition to those clauses that could unnecessarily make the mortgage more expensive, such as the ground clauses.
In the particular case of variable-rate mortgages, it is essential to know the reference index of the mortgage, as well as its substitute and the possible reasons for its modification. While in fixed mortgages it is essential to recognize the cost of the commission for interest rate risk, a commission that is only included in fixed loans and that can exceed 5% if the debt is paid in advance.
Regardless of the interest rate
Attention should be paid to products especially linked to insurance. Identify if it includes a PUF insurance (the cost of which is financed with the mortgage and for which we will pay interest), knows its cost and how much the mortgage interest, the contracting term and the impact that the cancellation of the policy can have on the financing.
After analyzing the E-Money the conclusion that the client must reach is whether the current offer is good or not. If not, the consumer must keep in mind that a mortgage is a 100% negotiable product, so he can deal with the negotiation with the bank as far as his financial capacity allows.