Legal tip 308. Binding offers by financial institutions
Friday, June 25, 2010 @ 11:04 AM
If you, as an individual, have applied for a mortgage in order to buy a home and the amount of the mortgage is under 150.253,03 euros, once negotiations have been finished between you and the Bank or Finantial institution they need to give to you a document called " Binding offer" (oferta vinculante) . This document is is a document that will run at least for ten days, and will specify in detail all elements of the loan:
1. Amount and way of delivery of loan
2. Repayment: number of instalments, frequency of payment, amount and payment date of the first and last instalment, commission for partial early repayment
3. Interest rates: nominal, if it is fixed or variable, and in the second case, how, when and depending on which index will be changed and the reference index that will be applied.
4. Commissions, opening fee and commission for -early redemption in whole or in part, this latter only applies if happens.
5. Other costs that are borne by the borrower: property valuation, notary and registration fees, etc...
6. TAE