The dream of many people remains to be able to get their wealth by buying a home. Although it may not be one of the priorities of young people, there comes a stage in their life where this begins to be relevant. However, many people can start with leaving their home and renting a house or apartment.
Tips Before Buying a Home
Because this is a big step it is important that you have certain considerations before making the big decision for Buying a Home.
Finance in rule
As long as you have the finances in order in addition to referring to having a control and a good management of your personal finances through a budget, we also mean that a number of your debts is not very high. In fact, it is recommended that before applying for a mortgage loan or a loan your debts are at the lowest levels. Acquiring a debt with a mortgage loan is usually much greater than any other debt, often times you sacrifice up to 50% of your income for the monthly payment on time.
Achieve much of the advance
Banks and financial institutions will offer you great deals. Often they are up to almost 90% of the total value of the home. And although it might seem like a great opportunity, since you do not need to have much money for the hitch, it is completely recommended otherwise. If possible try to save as much as you can for the hitch, so you will be paying for fewer years and a smaller amount.
Many people often accept loans in a very high amount because they believe that the value of real estate could increase over time, in fact, there are many factors that determine that a home can increase its value or not. In most cases, this is not the case.
Pay close attention to the period for which you apply for the loan
Some banks even offer credit for up to 20 or 30 years, although the odds of one of 10 or 15 years could be very similar to those of 30, at the end of the day you are paying a lot more for a longer period.
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Opt for fixed and non-variable rates
Most financial institutions assume that the young people or people who are applying for a mortgage loan will go up slowly obtaining higher income over time. That is why they often offer variable rates. However, many times as your work life progresses, so do your financial responsibilities, in other words, even if you earn more you may have other debts or more things to pay.
Safety at work
Of course, before making the important decision to apply for a mortgage loan you should make sure that you have some assurance that you will be able to keep your salary and your work over time. To be able to protect against unforeseen circumstances, you can apply for unemployment insurance.
Successful completion of paperwork
Errors can be made anywhere in the process of buying a Home. From the purchase before the notary to the registration in the Property Registry. If you are not very sure about all the formalities, it is necessary to ask for legal advice.