Binding offer in a mortgage, what is it?

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If you are looking for a mortgage loan, you are probably receiving a lot of information from different banking entities and their respective mortgages . Once you have decided, you will receive the famous binding offer of a mortgage. In this article we tell you what it is and what it is for.

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What is the binding offer in a mortgage?
A binding offer is a document delivered by the bank or credit institution that reflects the conditions and characteristics of the mortgage loan that it undertakes to fulfill with its client. This document is delivered once the client has shown their willingness to take out a mortgage loan, after carrying out the appraisal of the property and after having carried out the economic study for the approval of the mortgage.

The entity must present this document in writing, included in the European Standardized Chinese Overseas America Number Data Information Sheet (FEIN), in which it must maintain the binding offer for a minimum of 10 days . In addition, the bank will also have to provide the Standardized Warning Sheet (FIAE), which explains the most relevant clauses and conditions of the mortgage.

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What should a binding offer contain?
This document must contain:

The amount of the loan requested and approved by the financial institution.
The appraised value of the property.
The mortgage amortization table for the repayment of the mortgage loan.
The relationship between the loan amount and the value of the home.
The number of installments and the amount of each of them.
The interest rate, whether it is fixed or variable and the mortgage reviews.
The opening and cancellation commission.
What is it for?
The binding offer of a mortgage contains the personalized conditions of the mortgage after the evaluation of the profile of the mortgage applicant, so it serves so that the client can calmly review the conditions , plan the installments and to raise any doubts that they may have. arise before going to the notary. We recommend that you have the help of a mortgage broker to advise you throughout the process.


Infographic about the binding offer in a Housfy mortgage.
What does a binding offer require?
When the client receives the binding offer of a mortgage, he is not obligated to anything . If there is any point that you are not convinced or that he does not agree with and he wants to negotiate again, he can do so.

On the other hand, this document obliges the banking entity to maintain the conditions stipulated in the offer for a minimum of ten days, that is, this document is only signed by the banking entity, so it only binds it.

Additionally, you have the right to review the deed document that you are going to sign at the notary, three days before the date scheduled for signing. This way you will be able to carefully review everything detailed in the offer and if you have any questions you may have, you can consult the notary.