A big or small house? Cash or credit? When looking for houses there are always doubts, so it is advisable to have a small guide of recommendations and advice to buy houses and not get lost, both in understanding the procedures and the steps we must follow.
Buying a house is the dream of many and can represent the investment of savings obtained from a lot of work, so before signing the contract and making the deposit, several factors must be taken into account to avoid unnecessary expenses in the future.
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What are the steps to buy a home?
In general, we should follow a series of steps or procedures to be able to acquire a home in a coherent way.
How much can we pay to buy a home
The first thing we should know is how much money can we spend to buy a house. Although apparently this may be an obvious issue looking at our economic situation, there are two rules that we must follow to be calm throughout the future years, be proactive and make calculations based on different possibilities:
The indebtedness capacity: It is the quota that we can pay every month, which will be calculated based on the monthly net income (It is the base salary, excluding diets, commissions or supplements). Banks and real estate companies, who know a lot about the subject, recommend not to exceed 35% on the base salary.
The amount of the loan: Usually banks grant between 70 and 80% of the appraised value of the home. In some cases, this fee may be higher if for example we have guarantors, we contribute a large sum of money at the beginning of the sale or we have a fixed contract. This is an aspect that must be personally discussed with the bank in the case of requesting a mortgage loan.
These two factors combined are what will determine – to a greater extent – the amount of money that we can assume to buy our property.
What are the expenses to buy a house?
The following graph we can test a general scheme of expenses in the sale of an apartment.
There will be three key points where the money will go:
Mortgage Expenses: Opening commission, appraisal, notary, insurance … etc.
Purchase and sale expenses: For new or used housing (Second hand) where we will see the Taxes of documented legal acts or patrimonial transfers, taxes, etc.
In reality, it is to search the Internet for example “simulator for home purchase expenses” or “calculate home purchase expenses” so that we can find a calculator of the fees that we must pay. Remember that you must differentiate between new and second-hand housing, types of housing (Chalet, Flat … etc), first or second residence, and by Autonomous Communities.
Payment methods when buying an apartment
The payment method is one of the first questions to consider, since it will be the first selection filter. The two most widely used forms of payment are:
- Payment or deposit in a single exhibition. Perhaps the most preferred form of payment, but the question of … Can you always pay for a house in cash? Of course, the benefits it presents are the immediacy with which the property is obtained in its entirety, avoiding making payments for long periods of time and generating interest for the delay in said payments.
- Bank credit. It is one of the most common ways to buy a home. The benefits of this purchase system are that a certain number of payments are established for a certain time, adequate insurance can be negotiated at the time of purchase and the exact payment amount is established.
How to calculate the price of a house
Although on the Internet we have access to a lot of simulators that tell us how to calculate the price of an apartment, chalet, town house, premises … etc. We are going to be a little more serious about the real estate market, the value of a house is officially determined by a document called Appraisal, but we are going to extract two values to get an idea.
What are the keys to buying a home?
Once the visit is made together with the real estate agency and a series of data has been collected (housing status, needs renovation, checking facilities, carpentry … etc), you can have a slight idea of what it would mean to acquire the home in question.
However, in this guide to buying a home, it should not be forgotten that not all the information that is extracted from the visit is objective and valid for making a decision. So, let’s go over the highlights of how to buy a home without wasting time:
The environmental investigation processes
The neighborhood investigation comes first, in it factors such as the type of life in the area are known, possible negative effects that were not seen with the naked eye during the visit, such as annoying noises, works, pollution, crime or other problems.
This information is easy to obtain, only by asking the residents of the area a little bit can you know what is going on in the neighborhood.
For example; if we have nearby hospitals, shops and supermarkets, schools, metro stops … etc. Important, having good services nearby! … this can determine which house to buy or not.
Zonal investigation of the home environment
The community investigation is the one that has to be carried out in the same community of neighbors, from this information is obtained about whether it has problems with the builders, the City Council, or simply if an important spill has been made to correct any reform. of the building, since once the house is acquired, this debt is contracted by the buyer.
Remember, that the student neighbours students or the apartments for tourist rentals, sometimes, because they bring with them quite a lot of noise.
What are the necessary documents to buy a home?
There are a number of documents required when signing a home purchase and sale. In reality these documents will provide us with legal security and detailed information about the property; from the Deed, the Cadastral certificate, the energy efficiency certificate, habitability certificate, simple registry note… etc.
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