By Larissa Ciantar, Senior Manager – Mortgage Lending at MeDirect
Article published on the Architecture and Design Publication and Malta Today.
Buying a new home is exciting but it can also be complicated and stressful. If the time has come for you to purchase your first property or are thinking about moving to somewhere new, keeping the following tips in mind might help make the process a little bit smoother.
Have a clear budget.
One of the most common mistakes homebuyers make is to start looking at properties without having a clear understanding of what their budget is or, to put it more bluntly, knowing what they can afford. Keep in mind that, in addition to the cost of the property, there are other expenses including notarial fees and any applicable taxes which, of course, can run into several thousand euro. You might also need to finish or want to renovate the property you will be buying which will again have a significant impact on costs. Understanding all this in advance and knowing how much you can actually afford will provide you with a clear budget.
You can get clearer guidance by speaking to a bank representative and requesting information on the amount you can borrow for your ideal future property. This can then be used to ensure that you will view properties that are within your budget.
Getting a quote from your bank.
If you have decided to start looking for a new property and want a quote from your bank to see how much you can borrow towards making the purchase, you will need to provide the bank with some documentation. Remember to discuss the possibility of bank financing for finishings, alterations or furnishings that might be required as the terms and conditions for these might be different. Most banks will require similar information, including identification documents, recent income documentation and evidence of other financial commitments you may have. In the case of MeDirect, you can carry out this process online by reading through the information here and contacting us directly through the website.
Once you have found the property you wish to purchase, it is time to apply for your home loan. To do this, you will need to give the bank additional documentation including, for example, recent bank statements and a copy of the promise of sale agreement. You can find MeDirect’s full check list here which covers all the requirements. Once the bank has issued a sanction letter, you will need to provide a copy of this to your notary, have an architect complete the bank’s valuation form, supported by applicable plans and permits. At this point you will also need to make sure that adequate life and building insurances are in place to cover the home loan you shall be taking out. Once again, MeDirect provides customers with a personalised checklist to help make the process as easy and straightforward as possible.
Being prepared is the key to success.
Buying a new home need not be a stressful experience, provided you know what’s required and are adequately prepared. Luckily, with MeDirect most of the processes can be carried out online or over the phone. We also use technology to make the process of issuing sanction letters and subsequently enabling the signing of the final deed much faster. In addition to standard home loans, we also offer green home loans, home equity loans and property investments loans. More information is available here.
MeDirect Bank (Malta) plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.