If you dream of buying a property, start planning now.
The decision to buy your first home is one of the best and most important resolutions you will ever make. After all, for most people a home is their life’s most important investment and has very specific financial advantages, including: wealth accumulation, appreciation and tax benefits. It’s also an automatic savings plan, it’s a way to build capital, and it’s impossible to do when you have to rent!
The process of buying a property has several key stages:
First, you must define how much of your monthly family income you can allocate for mortgage expenses, municipal and school taxes, electricity, condominium expenses (if applicable) and room insurance.
Sufficient savings for the down payment and expenses associated with the purchase should also be considered
icipales y escolares, electricidad, gastos de condominio (si es que aplica) y seguro habitación.
También se deben considerar ahorros suficientes para el pago inicial y los gastos asociados a la compra.
A question that arises very often is what is the maximum amount that a Bank can lend me? This will depend on your income, credit history, and other credit obligations.
A financial institution will pre-approve you for a specific amount, but you decide how much you can comfortably pay each month. Remember, the Bank only sees your financial situation on paper. The decision of how much you are willing to adjust your budget to have the house of your dreams is yours and only yours.
Once a bank pre-approval is obtained, the property search can begin. But how or where to start? There is a huge supply of properties and diving into this without any guidance can be overwhelming and confusing. The most important rule to reduce stress is to rely on the knowledge and experience of your Real Estate Agent to help you confidently throughout the entire process.
Once you’ve found a home you love, the next step is to make an attractive offer. While emotions are likely to run high when you find a home you’ve fallen in love with, it’s important to remember that a home is an investment. Your Agent will search for similar properties in the neighborhood to help you determine the market value, and a fair price, for your new property. The person you choose as a Real Estate Agent will also be in charge of explaining the documentation and together, they will determine the conditions and clauses of the contract.
Inspection of the property is not mandatory however it is highly recommended. The inspector’s job is to find everything uncovered, no matter how big or small. The inspection report may be long, but anything that can be easily repaired can be ignored. In the event that a major problem appears in the report, you have the option of requesting the repair of the damage or canceling the offer.
Once the property is selected, the financial institution will be able to grant the mortgage loan, since it is the property itself that will remain as a guarantee of the amount granted by the Bank. The purchase promise is conditional on both the inspection and the mortgage approval letter. Be prudent and maintain control of your credit and economic situation without making very expensive purchases, between the pre-approval period and the signing of the sale certificate.
The purchase process does not end when all the conditions of the offer are fulfilled. The Notary is responsible for analyzing the legal aspects of the transaction and preparing the minutes of the mortgage and the sale.
If you are interested in buying soon, I invite you to register on this page.
© 2022 All Rights Reserved.
