Upon applying for a loan, irrespective of its type—mortgage, pledge-backed, personal, etc.—, institutions granting them shall be identified as well as such loans that are of your interest. Once this selection has been made, gathering all the available information on costs to be paid once a loan is granted is advisable.
It is worth underscoring that the interest rate is only one of the components making up the cost of a loan.
Therefore, for an adequate cost comparison, the Total Financial Cost (CFT) must be used, which includes the annual nominal interest rate (TNA) and all other costs related to the transaction (such as insurance policies, taxes, third parties’ assessments).
Additionally, the requirements demanded by every institution as well as your chances to meet such requirements must be analysed.
Once the institution where you shall apply for a loan has been chosen, you should contact such institution to clarify any doubt you might still have about the characteristics or conditions of the loan you wish to apply for.
You should make sure you are aware of the obligations you shall comply with, verifying that they adjust to your budget, and that you shall have no difficulties to make the payments owed.
By signing an agreement referring to a bank product or service, you accept the obligations and rights contained therein. Therefore, before signing, you should always read and understand the contents of all documents requested by the bank and try to be given a copy of such documents.