Apply for 100% mortgages is to acquire 100% of the financing of the purchase price of the home you want to acquire, many people do not have savings to advance part of the amount of that housing, so they look for this type of financing by traditional banks.
It is not common for banks to grant mortgages 100% the most common mortgage offers is to offer the loan of up to 80% of the appraised value of the property you want to acquire if it is the first home, if it is the second housing that is acquired, goes up to 70% of the appraised value.
But if the sale price of the home you want to buy is lower than the appraised value, you could get 100% mortgages.
100% mortgages are more expensive?
You have to take into account that the total financing of a home implies a greater indebtedness, you always have to be sure of the characteristics that each mortgage offers and 100% mortgages is not the difference, to assume this risk and responsibility depends only on you.
If you want this type of financing because you do not have savings it is not the best strategy to follow, on the contrary, if you opt for this type of financing you should be prepared for the consequences.
It is more convenient to opt for a mortgage that only finances 80% of the home to acquire, since it is cheaper both in the long term and in the medium term and is less risky if you are not prepared financially.
Tips for mortgages 100%
A mortgage financing supposes a great responsibility, it is required to have a wide information regarding the other offers and the one that you chose in order to choose the one that suits you the most.
When applying for 100% mortgages, it is convenient to take into account the following aspects:
- Having saved 20% of the price of the house, it is never the case to have saved savings.
- The acquisition of the house imposes expenses (taxes and fees) that are around 12% of the value of the purchase.
- The formalization for mortgages 100% supposes some expenses that go between 3% and 5% of the price of the house.
- We recommend that the monthly payment of the mortgage does not exceed 30% or 35% of the income of the owner, so that he can face the payment of the loan without any problem.
- Ask for a mortgage to buy bank apartments, after the economic crisis, banks have amassed a number of real estate agents in which they are interested in selling as quickly as possible, so if we choose a bank floor, it is possible that we get better financing.
How do I get 100% mortgages?
Very few banks offer this service to finance housing at 100% since this type of operation is usually associated with a high risk of delinquency, for this reason they only grant up to 80%.
So that these traditional banks can approve your mortgages 100% you need to have an excellent financial profile; and having fixed and stable monthly income increases the possibility of 100% mortgages being granted.