Mortgage banking is, in the true sense of the word, a type of service designed to disburse funds for the purpose of acquiring a home of one’s own or improving it. The main parameter is a mortgage loan secured by a mortgage on the property. However, we also come across the term online mortgage banking. What is it?
When you say mortgage loan
A mortgage is a long-term loan, the repayment of which is secured by a mortgage on real estate, which must be located in the Czech Republic or in an EU Member State or a state that forms part of the European Economic Area. It can be either the loan object itself or another property (or more than one property).
A pledge created by a written pledge agreement is then an obligation of the owner of the real estate, by which he gives the creditor (the bank) the possibility to claim satisfaction of his claim from the pledged property. The bank does not become the owner of the mortgaged property, but only secures its loan claim.
What is online mortgage banking?
You’ve certainly come across the term personal banking, but what is mortgage banking, which can now be used online? Until recently, those who wanted a mortgage would make appointments at individual banks or use the services of a personal financial advisor. Today, this can be done from the peace and comfort of home.
You can arrange your mortgage online via the internet or over the phone, and you will be guided through the entire process by an experienced mortgage specialist who will be available to you at all times.
- The online mortgage banking is accessed via a mortgage calculator, where you describe the mortgage you are looking for and compare offers from different banks.
- You can also find out the fees for processing the loan, its management, drawdown, property appraisal, land registry, etc.
- When you choose a mortgage from the offer, you fill in the necessary details, attach two proofs of identity for the main applicant and any co-applicants and send these documents for processing.
- You will then hear from a mortgage specialist who will help you with the next steps. He or she will send you a list of documents needed to approve the mortgage, send the loan for approval and, when that happens, prepare the contract for you to sign.
- The last step is taking out a mortgage. This too has rules and your assigned mortgage specialist will familiarize you with them and help you through it.
Did you know that thanks to online mortgage banking, you will also find a watchdog tab that will ensure that you don’t miss the end of the fixing period and will also keep an eye on your mortgage anniversary and the date of the special payment?