Do you long for your own home and already know that you will get one in the near future? Then it’s good to know that you can arrange a mortgage without a property and find one later, within an agreed period of time.
A mortgage without a selected property is also referred to as an upside-down mortgage
The standard procedure is to find a property and then apply for a mortgage. However, when there are multiple people interested in a property, the first person who can pay for it gets the majority. That’s what a reverse mortgage (otherwise known as a forward mortgage or forward mortgage) can help you with. By arranging it up front, you’ll have the money available and an advantage over other bidders. Plus, once you’re approved for a mortgage, you don’t have to prove your income again.
There are disadvantages to a mortgage without a property
However, it is important to know that you have a limited period of time until which you have to acquire the property, if you do not do so, you will pay a fine, which can be several tens of thousands of crowns. This period is a maximum of 3 years. However, the difficulty can also be that you have to estimate the mortgage amount in advance and then fit it in.
Did you know that a forward mortgage is also advantageous for those who do not currently have a selected property but want to guarantee favourable interest conditions?