How do I choose a mortgage loan ?

How do I choose a mortgage loan ?

There are several types of mortgages on the market. You certainly do not take out a mortgage loan every day, so you may find it difficult to choose the best one.
We understand that it is a difficult decision and, in order to simplify everything for you, we propose, based on our experience, to consider 5 criteria for choosing a mortgage loan:

• Credit purpose

There are several types of credits for various purposes (acquisition, renovation, housing, mortgage, etc.). Thus, it is important to choose the one that is best for you.

• Flexibility

A mortgage loan is a long-term commitment, so it would be very helpful to have a degree of flexibility about:
The analysis commission – when the loan is granted, a analysis fee is paid because we also have additional costs for documentation preparation, financial analysis, legal analysis, etc. This commission differs substantially on the market, from one financial institution to another.

Monthly rates – when you buy a home you also have other significant additional costs that can be harder to cover, especially when this happens at the beginning of your professional career. There are products that give you a grace period within which you do not return any of the borrowed capital. We advise you to choose this option only if it is absolutely necessary because it will cost you more in the future. Verida has decided to introduce the 30-year Fixed Installment loan, which ensures that the interest and the monthly installment remain fixed throughout the loan. In addition, we rate the correct payment behavior by gradually lowering the initial rate. This credit will be granted and reimbursed only in dollars. Learn more about this product type.

• The maximum amount that you can obtain

This is calculated based on your monthly income, but also on certain features of our credit products. We invite you to do some loan simulations using the credit calculator on this site to find out what is the maximum amount you can borrow for each product. For a detailed calculation, please contact us and one of our credit officers who will provide you with all the necessary information.

• Currency

There are loans in different currencies on the market (Euro, RON, USD). Our advice is to choose the currency that suits your income so that the exchange rates fluctuations does not affect you costs.

Also, make sure you are comparing credits using the same currency. The currency in which the credit is granted is important, but there are other conditions that can strongly influence the characteristics of the loan. For example, one of these is the evolution over time of the banking index for the currency you borrowed, the index of which is the interest rate.

• Current and future credit costs

It is important to be aware of how these are presented (there are cases where you can be misled) and other additional costs (sometimes substantial). Always check the Annual Interest Rate to compare more mortgages because there are several factors besides interest rate that affect the total cost of a mortgage loan. Also check the period for which the interest rate varies (3 months, 6 months, 1 year). We invite you to read carefully the section “Costs of a mortgage loan”.