Buying a house is a major life moment for everyone. This decision has not only to do with the fact that you are making one of the biggest investments in life, but also if it will fit personal needs of your actual life, and also the expansion of the family in the future.
If you do not have previous experience in applying for a home loan, it is necessary to be properly informed. OTP Bank Albania brings some information which can help simplifying the application process.
First suggestion is to find a house that suits your needs, equipped with proper documentation. In case of buying a house with financing from bank, it is necessary for the seller of the property to agree for this process.
Secondly you may head to the nearest branch where you will be familiar with the borrowing process, interest rates and fees. Customer relationship managers are ready to assist throughout the financing process by informing you of everything that will be needed.
A key factor in approving a loan is proof of income from all your financial sources such as: salary income, second job, rent, self-employment, etc. In order for the bank to estimate income and expenses, it is important to identify your monthly expenses. Thus the bank concludes in a correct decision regarding the amount that can be applied, loan term and the monthly installment.
It is also taken into consideration the history of previous installment payments. A good payment history shows the bank that you are paying off your obligation on time.
What are the terms you will encounter during the application?
- Principal – The amount of money which is borrowed from the bank.
- Property Insurance policy – A commission that covers a financial liability for the policyholder as a result of a triggering event causing major property risks, such as fire, theft or weather damage.
- Life Insurance policy – Commission which applies for life insurance where in case of misfortune, the insurance company pays the financial debt, without the need for family members to inherit it.
- Fixed interest loan – Loan which applies fixed installments for a certain period, agreed with the bank.
- Variable interest loan – Loan which applies variable installments depending on the interest rate of the Bank of Albania.
- Payment History – Report of installment payments of banking products obtained in banks.
OTP Albania Bank offers financial advice from a qualified staff who helps you in every step of this journey, saving you time and effort and making the borrowing process as simple and fast as possible.
For more detailed information regarding the terms and conditions of the home loan, click here.