What is the process of buying a house with a mortgage?

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A mortgage is a long-term commitment, we can talk about terms of 30-40 years, during all this time many things can happen and the decision to sell can be made before paying off the debt. Can be done? Yes, you can sell your house with your mortgage outstanding and it is quite common. In today's article we will focus on the process of buying a house with a mortgage.

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What is the process of buying a house with a mortgage?
Buying a house with a mortgage is a very common operation and the buyer Chinese Overseas America Number Data has three different ways to do it:

Mortgage subrogation: from seller to buyer
It is not the most common way to buy, the profile of the seller and the buyer would have to match for it to be viable. In the event that the buyer has a better profile, he would be accepting much worse conditions than those he would get by taking out a new mortgage. In the opposite case, if it is the seller who has better conditions, the bank will most likely not accept the change of owner.


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If the bank accepts the request to change the debtor, the buyer can accept the subrogation or, alternatively, accept it and subsequently request a novation to improve the conditions. But, keep in mind that you will have to do two different procedures with the corresponding costs. The expenses are as follows:



Notary.
Management.
Appraisal.
Commission for novation or subrogation.
Buy without a mortgage
The simplest case is to buy the house in cash, but obviously few people can afford to save such a large sum of money. In addition, you must keep in mind that it is advisable that you continue to have some savings once you have bought the house for any unforeseen events you may have. But, if you can do it, these would be the steps you would have to take:

Write a check to the bank with the outstanding amount of the property loan.
Check to the owner  with the amount you have already paid on the mortgage.
Take out a new mortgage
The most common thing is that you choose to take out a new mortgage loan. In this case, the owner would have to cancel the mortgage with his bank so that the buyer can proceed to apply for a loan. These are the steps you will have to follow to request a mortgage:

Search and compare
When you want to apply for a mortgage, it is essential that you first search and compare the different types of loans that exist. It is the best way to see what options exist and which entities offer the best products.

Ask for information
Once you have done this analysis, the next step will be to request information. It is best to choose a maximum of 3 banks.

Submit the documentation
Keep in mind that it is one thing for the bank to have good products and another for you to have a good profile to access them. For this reason, the entity will ask you for certain documentation to do a feasibility analysis and see what type of financing you can access. You will have to do this process with all the banks you have chosen.

Offer and negotiation
If the bank sees that your profile is viable, they will send you an offer with the conditions they can offer you for the mortgage. It is essential that you read it carefully and pay attention to these points:

Financing conditions.
Mortgage interest .
The Standardized Warning Sheet.
Expenses broken down.
Contract clauses.