The mortgage transfer is a good business and good business must be taken on time. Why pay more if you can pay less for your mortgage credit. However, requesting a transfer of a mortgage loan at an inconvenient time may damage the business.
A few months ago, a friend bought a apartment. His dream was to become independent and live near his workplace. Sometimes dreams have small problems. In this case, for my friend, the drawback was the bank that financed the project. He had no commercial link with the entity and the rate he offered was not the lowest in the market. After making accounts and evaluating the cost of the bond letter, he decided to accept the business with the idea of making a transfer to another bank as soon as possible.
- I already have to pay the third installment. Can we start the transfer request? He called me one day, clearly excited.
- It is not very soon.
- Remember that I can save money if I move.
- I have it clear. Precisely, because a lot of money is at stake, we cannot harm the business, ”I replied.
I learned it from a law professor, who surely learned it from his grandparents. There is a moment for everything. Waiting is an art and a good business.
What does a bank do when accepting a mortgage transfer?
Let’s review the topic from the beginning. You want a transfer because you are interested in improving some of your mortgage loan business . Lower the rate, lower the monthly fee or change the term, for example. The bank, for its part, is also interested in doing a good business:
- Get a good customer
- To pay in full
- And buy other products from the bank.
How can you prove to the bank that you are a good customer?
The financial institution will ask for some documents to verify the status of your mortgage loan.
- It will verify the fulfillment of the current obligation , that is, the timely payment of each installment of your mortgage loan . How many are enough to prove you are a good payer? Some. Sounds vague, I know. The reason is that, while paying on time is one of the important factors in the negotiation, it is not the only thing.
- The entity will also study your economic situation. It will evaluate your job stability . If you recently changed companies, it would be better to wait a few months to prove that your income is safe.
- Of course, he will look at your bank movements, new loans or the use of a credit card . The important thing is to be clear about this: you have not submitted the papers for the request to transfer your mortgage loan, but you are already negotiating. If you overdo it, you can damage your borrowing capacity.
- Age and health status are important variables for the bank. The bank expects that when you finish paying the credit you are in the allowed age range , which changes in each entity, and is between 20 and 70 years .
As you can see, you have to have an active calm for a few months. My recommendation as a broker is that they be between four and six months. In this way, we will be sure to get a good offer.