Housing and Real Estate

The future guarantor should consider whether you really need their support or if there are other alternatives for buyers like to wait a while to get a payroll more stable, more solid savings or a decline in housing prices. Is also the possibility of buying a cheaper apartment or starting on this adventure by renting a house with option to buy.

The guarantor has to take into account the current economic situation and their expectations for the future. In making the decision must weigh their own needs and those of other relatives who may need their help after a while. When endorsing a son or a friend sometimes do not take into account that the priorities may change and the guarantor may need outside financing that will be difficult to achieve.

If it is determined to endorse, agree with the bank should be the best conditions for those who support the mortgage. Whenever possible, it should explicitly sign that the guarantor will be informed of any delay in the payment of the mortgage payments for a small non-payment does not result in a seizure of their property. While this is to be presumed and the guarantor trust the borrower never hurts to be in writing. It is also important to ask to be informed of any change in the conditions of the loan.

Banks usually enter the compensation clause of debts and credits that allows the entity to pay his debt the borrower taking money directly from the deposit guarantor. To the extent possible, should reject this charge, even if the bank does not always allow. Nor should sign a “renunciation of the benefit of exclusion and division order” that gives the bank the possibility of seizing the guarantor that is more accessible, where there is more.

In general, it is essential to read all the clauses of the contract and ask what is not understood to workers of the bank as to any qualified advisor.