Contrary to what many may think, mortgaging a house is not a financial action that necessarily has to be negative. This practice, if done well and responsibly, can be an excellent ally to help us achieve our financial goals.
If you are thinking about how to mortgage a house, throughout this article we will explain all the secrets of this action. Apply the information and enjoy the benefits.
Information is power, so do not miss the opportunity to know everything about mortgages before mortgaging a property.
What is mortgaging a house?
Mortgaging a house is the action of offering your own home as a guarantee to access a specific amount of capital granted by a financial entity. Usually this practice is related to the purchase of a new property, but it can be caused by other factors as well.
Requirements to mortgage a house
- Take out a lien insurance.
- Owning the house you want to mortgage.
- Not having put the home as collateral for other financial products.
- The house cannot be under construction.
- The property must have its factory declaration.
- Be the age predetermined by the loan company you choose.
- Comply with the minimum fixed income established by the financial.
- In some cases it is necessary that the home be insured.
- Have a good credit history.
How to mortgage a house in Mexico?
If you are planning to mortgage your home, in Mexico you can find several financial entities willing to help you. Before hiring any, you must make sure you are financially prepared to face the responsibility.
Keep in mind that you will have to choose between different types of mortgage loans. There are them with fixed, variable or mixed interest rates, and the idea is that you hire the one that best suits your needs.
Also make sure you know and apply the following information.
How to know if my house is mortgaged?
In the declaration document or any contract that specifies all the details of the house you can find that information. You can also choose to go to your local government offices and request information about the property.
On the internet there are also sites that can help you find that information. Usually you just have to enter the house address and then complete the fields that appear.
How to mortgage my house to the bank?
The first thing you should do is compare the mortgage loan offers of the banks in Mexico and choose the one that best suits your needs. Then you will have to meet the specified requirements, and make sure you pay the fees on time to avoid penalties.
Mortgage my house to pay debts
It is possible to use a house as collateral to obtain liquidity, but the mortgage concept itself may not be correct for that case. A home mortgage is often used as a tool to buy another property.
If you want to pay debts, banks and other financial institutions will gladly provide you with loans or lines of credit using your home as collateral.
Before hiring such a financial product, you should keep in mind that these are usually subject to higher interest rates. It should also be noted that with hiring you have to pay opening fees or hire other products such as insurance, etc.