When you have a mortgage loan (mortgage) with a bank, it may be interesting to change the mortgage to another financial institution to obtain an improvement in the conditions of your loan, without having to cancel it and formalize a new one. This operation is carried out through a subrogation of the creditor or between entities, that is, the debtor decides to change the financial entity to benefit from a change in the conditions of the operation and/or in the amortization period.
But, how complex it is to make the mortgage change to another bank to access a better offer on the loan- Ipadkopen installment loans in corona ca. The change of a mortgage to another bank is regulated by law and requires the new financial institution to study the situation, as well as compliance with the requirements and costs associated with the subrogation.
Procedure to change the bank mortgage
During this process, the new entity chosen will inform the debtor and accompany him throughout the procedure for the change. First, the new financial institution will study the situation and verify that the requirements for the granting of the mortgage loan are met. In case the study is positive, the new entity will present a binding offer to the debtor, in which the new financial conditions of the new mortgage loan appear.
Once the offer has been accepted by the debtor, the new entity will notify the other bank of its decision to subrogate and will require it to issue, within seven calendar days, a certificate on the amount due for the mortgage loan.
Once the certification has been delivered by the bank, it will have fifteen calendar days to enervar the subrogation, that is, to formalize with the debtor a modification of the loan conditions that equal or improve the binding offer.
If, after 15 days, the current bank does not manifest its binding disposition to formalize the modification of the conditions with the debtor, the deed of mortgage subrogation may be signed.
In addition, it must be borne in mind that the change of a bank mortgage involves costs related to notary, agency and registry expenses, as well as a subrogation commission as stipulated in the contract. Likewise, the debtor must advise on possible additional costs that the subrogation may entail such as cancellation or cancellation expenses, interest rate risk, new valuation of the property and tax of Documented Legal Acts.
The change of mortgage to another bank can mean an improvement in the conditions of the operation and/or in the repayment term. The debtor will have to meet the requirements for the granting of the new loan and, in this way, the new bank presents a binding offer to the debtor with the conditions of the latter. If the current bank does not equal or improve the offer made by the new entity, the deed of subrogation will be signed with the new terms of the loan. Finally, the operation involves costs that must be borne by the debtor.