There is a better time than any other for everything. And a signature mortgage It is one of the most important decisions in any person’s life so you have to try Find the best moment for both personal and real estate And it’s not just the savings that can be made by the home or prospective mortgage lender in signing the mortgage, but also the economic and macroeconomic environment, because this will condition financial institutions’ bids. .
So when is the best time to buy a home and apply for a mortgage? Realistically, the answer would be: the best moment is over. Yes, the time to buy a home was 2021, Euribor recorded the lowest levels in its entire historical series and therefore mortgages were cheaper than ever, interest rates below 1%. However, since it is very difficult for us to return to this, what we must now consider is, if it is worth hiring as soon as possible mortgage or until 2023 if it is better to wait a little.
To give the most accurate answer possible, we analyzed three determining factors: the current and future macroeconomic environment, the interests of banks, and the interests of consumers.
“Interest rates will continue to worsen”
Comparator and mortgage advisor iAhorro’s Director of Mortgage, Simone Colombelli, is clear on what to expect in the coming months.in six, seven or eight months things will get worse”, that is, “the sooner a mortgage is signed, the better”. What does it mean? What better way to sign now than wait until 2023? flat rate worsens significantly If Euribor continues to rise, because Euribor is currently positioned at 3%, this forces banks to position themselves in this environment and the trend is for it to get worse,” adds Colombelli.
So much so that the European Central Bank (ECB), which has already increased interest rates to 2 percent this year, has suggested that it plans to increase interest rates. we will reach 3.5% levels in the middle of next yearwhich means that the increases will continue and this will affect banks’ offers.
The downside is that while inflation is rising rapidly, saving becomes a much more complex task and also make a living. For this reason, banks are now a little more secretive about issuing mortgages and evaluate their customers’ financial situations more. They don’t want to risk defaulting on their mortgage payments. Of course, Colombelli makes this clear. organizations also “continue to need work” and they continue to be hungry for mortgages and even more hungry for good or half-decent customers”. In other words, a able-bodied client with a good salary and stable job should not have to worry about whether he or she will be able to give him a loan right now, in addition to the minimum savings that can apply for a mortgage.
Banks are also working towards targets
Another reason why it’s better not to wait until next year to sign the mortgage is that the third quarter of the year is always the time when banks tighten the nuts a little bit more and try to get better rates to retain their customers. . and thus achieve the goals. Because yes, banks, like other companies, work towards goals, and signing X mortgages per year is one of them. That is, in case they didn’t hit the targets, November and December are usually the most beneficial months. for mortgage futures that may require more when negotiating your mortgage.
However, fulfilling this premise this year is more difficult for two reasons. The first of these started the year very well with record mortgage companies in our country and unrivaled offers to customers. For this reason, financial institutions have already reached the targets they had to reach at the end of the year, and it may even have been months since they reached these targets.” iAhorro Mortgages. Another reason is that with the ECB rate rising to 2%, The probabilities of negotiating a mortgage at a lower rate than that are complexand a lot. It is much more to see the values of Euribor, which closed the month of November at the level of 2,828%.
Holidays may delay the process
“January is usually a bad month to sign a mortgage because of the number of holidays in December,” Colombelli explains. And an operation signed in January is started to be managed at least two months in advance, but there are many holidays in December that may cause that operation to be postponed or even taken until February. Therefore, if you need to sign the deed to your house before January 1st, it’s best to hurry or even turn to a mortgage counselor to help you go through all the procedures.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.