Home mortgage loans: you must to know before you buy
Home mortgage loans are loans given by a bank, Mortgage Corporation or other financial organization for the purchase of a primary house.
You want to buy your house or apartment? Before applying for home mortgage loans, follow these 5 tips to help you make the best decision.
The world is experiencing a real estate boom from recent years. Demand and property prices have increased in the cities.
The dream of many people is to have a house or apartment own housing options and mortgage loans are many. Therefore, in this article we explain everything you need to know if you’re starting the odyssey of buying the house or own department.
- Save money.
Houses are expensive; they are not paid with the salary of a month. Some people save many years before buying a house, mortgage loans help you if you are not of those who started saving long ago.
A mortgage is a long-term financial commitment where an institution lends you money to complete the payment of a house in exchange for this money back (with interest) over a period of several years. If you pay attention, the keyword is: Interest. This loan has a cost and this cost (interest) can be significant when paying every month for several years.
- Try to get a significant first payment.
In case you borrow cash, it is less so you pay less interest. If you have something saved, it’s never enough. Save more and plan your savings, thinks that the practice of separating money every month to save is similar to having to pay a monthly fee, just not pay you interest anyone. Make sure you will be paying the highest possible interest for the money you save, so grows a little.
You must also know that some banks offer programs mortgage savings, which is a commitment to deposit monthly amount (type share your department) for a period of at least one year, after this period the bank knows you’re disciplined in your finances and your savings you will have an initial fee to access a mortgage loan.
- The deadline depends on your economic conditions.
If you ask what time is best to ask for a mortgage loan, the answer depends on your economic conditions. Ask less time means lower costs (less interest to pay each month and for less months). However, it also means more pay monthly fee and this can be a limiting factor for your finances.
A practical guide is to verify that the monthly fee is not more than 30% of the value of your salary, so that the rest can cover your other costs survival. If you are disciplined and you can prove that you can live with less than 70% of your salary for a sustainable period, then you can raise the ceiling for the monthly fee to 40 % or perhaps 50 % of your salary.
Plan your budget and keep that in mind to choose the term of your loan.
- Compare and choose the loan that suits you.
Another important tip to consider is to choose well the mortgage loan that suits you.
Aspects to consider:
– The services that the bank provides you with the project you’re buying.
– The possibility of prepaying your loan without penalty,
– Double installments in the months that you receive more money.
All this we can check on the value of the proportion that you can simulate the financial institution. While lower the fee, the better! You will pay less each month.