Buying a property with a mortgage loan: a guide with the steps and keys to a successful transaction - Infobae
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www.infobae.com
October 1 1, 2024
The details when analyzing a loan, what aspects are important in the process and how to avoid setbacks
By Jose Luis Cieri
According to general guidelines, applicants for credit must be a formal worker, whether employed, self-employed or a micro-entrepreneur, and meet the conditions of seniority and age.
Buying a home using a mortgage loan is a process that requires detail and planning. To begin with, it is essential to have sufficient savings to supplement the loan required to purchase the property and cover the costs associated with the transaction.
The reintroduction of UVA mortgage loans generated a significant increase in enquiries ( more than 250,000 were made until June ) in more than 20 banks that offer them, both for the purchase of homes and for construction, expansion or renovation. However, the economic context, added to more than five years without granting this type of credit, slowed down the process, affecting the pace of service and credit lines in banking entities.
But since August, a more noticeable process of property purchases has been observed, both in CABA and in the province of Buenos Aires, with more than 1,300 transactions in both districts. However, the phenomenon is still incipient.
"There is dynamism and week after week there is a good pace of enquiries and visits to units suitable for credit. The market is at its best in more than 5 years and we trust that people will be encouraged to take the risk in the coming months," Vanesa Ibarra , from Salguero Properties, told Infobae.
In the process of purchasing a home through bank financing, there are several stages that must be followed to be successful.
In addition, it is key to evaluate the financial situation: analyze the monthly income and expenses to determine whether the commitment can be made.
“The monthly loan payment should not exceed 30% to 35% of the person or family's income. This aspect will depend greatly on the type of work the applicant has, whether it is in an employment relationship, self-employed or a micro-entrepreneur,” Ibarra recommended.
In addition, the monthly income required to access this mortgage loan would be $2,194,008, with a down payment of USD 24,155, equivalent to 25% of the value of the property. It is also necessary to have an additional reinforcement to cover the real estate commission, which averages between 3% and 4%, as well as the costs of the mortgage and other expenses.
Therefore, anyone who takes out a loan, in addition to the 25% advance, must have an additional 5% to 7% to cover all expenses.
In addition, it is advisable to have a licensed real estate agent to speed up the process and provide security.
Necessary documents include ID, proof of income, property title deed, and municipal maps.
For those who are employed, it is necessary to have a minimum of one year of continuous employment. In addition, they must present the last three pay stubs (or retirement/pension stubs) and a certificate of employment, validated by a bank or a public notary.
In the case of self-employed workers, a minimum of one year of experience in the activity and proof of registration with the AFIP are required, along with the last three payment vouchers. It is also necessary to present a net income certificate issued by a public accountant with a legalized signature and the last three payment vouchers for the Self-Employed Regime and the Gross Income Tax.
From the time the home is viewed for credit until possession, it is estimated that the entire process for purchasing with a mortgage loan takes around 90 days (Illustrative Image Infobae)
For self-employed taxpayers, a minimum of one year of seniority is required, as well as proof of registration for the self-employed tax and the last three payment vouchers for both the simplified regime and the Gross Income Tax or proof of exemption.
“A key aspect is that the quota does not exceed 25% of the applicant's income,” explained Chej Musse.
Banks also require that the property be free of liens or other legal restrictions.
“Knowing these details is vital for effective mortgage loan planning,” said Chej Musse.
In addition, it is advisable to request a pre-approval of the loan to have a clear idea of the amount available. Ibarra added: “This allows you to adjust the search for housing to your budget and many banks already offer this procedure online.”
The monthly loan payment must not exceed between 30% and 35% of the applicant's income, depending on the type of work, whether it is in an employment relationship, self-employed or micro-entrepreneur (Illustrative Image Infobae)
Additionally, it is essential to consider additional expenses such as taxes, real estate fees, and moving costs. Including these factors in the initial budget helps to avoid unexpected surprises in the purchasing process.
Chej Musse said that “if supply exceeds demand, prices can be more competitive, offering a good opportunity to buy. In this context, it is essential to take advantage of moments when the value of the square meter is low.”
In an inflationary environment, initial payments may be more affordable, although they may rise later. “It is crucial that buyers assess their long-term payment capacity, since if inflation exceeds income growth, difficulties may arise,” Ibarra concluded.
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Source:
Comprar una propiedad con un crédito hipotecario: una guía con los pasos y las claves para concretar una operación exitosa
Conocer las etapas clave y los detalles a considerar al solicitar un crédito hipotecario es fundamental para concretar una compra segura. Descubrí qué aspectos son importantes en el proceso y cómo evitar contratiempos
www.infobae.com
October 1 1, 2024
The details when analyzing a loan, what aspects are important in the process and how to avoid setbacks
By Jose Luis Cieri
According to general guidelines, applicants for credit must be a formal worker, whether employed, self-employed or a micro-entrepreneur, and meet the conditions of seniority and age.
Buying a home using a mortgage loan is a process that requires detail and planning. To begin with, it is essential to have sufficient savings to supplement the loan required to purchase the property and cover the costs associated with the transaction.
The reintroduction of UVA mortgage loans generated a significant increase in enquiries ( more than 250,000 were made until June ) in more than 20 banks that offer them, both for the purchase of homes and for construction, expansion or renovation. However, the economic context, added to more than five years without granting this type of credit, slowed down the process, affecting the pace of service and credit lines in banking entities.
But since August, a more noticeable process of property purchases has been observed, both in CABA and in the province of Buenos Aires, with more than 1,300 transactions in both districts. However, the phenomenon is still incipient.
"There is dynamism and week after week there is a good pace of enquiries and visits to units suitable for credit. The market is at its best in more than 5 years and we trust that people will be encouraged to take the risk in the coming months," Vanesa Ibarra , from Salguero Properties, told Infobae.
In the process of purchasing a home through bank financing, there are several stages that must be followed to be successful.
First steps
According to the Real Estate Market Statistical Observatory of the Colegio Inmobiliario Porteño, one of the first steps is to choose a reliable bank that offers the best conditions for credit. “Once the bank has been chosen, the interested party must request a credit prequalification,” said Miguel Chej Musse , coordinator of the Observatory.In addition, it is key to evaluate the financial situation: analyze the monthly income and expenses to determine whether the commitment can be made.
“The monthly loan payment should not exceed 30% to 35% of the person or family's income. This aspect will depend greatly on the type of work the applicant has, whether it is in an employment relationship, self-employed or a micro-entrepreneur,” Ibarra recommended.
Practical example
In the Belgrano neighborhood, according to a report by Reporte Inmobiliario, the price per square meter is USD 2,247, which is equivalent to USD 96,621 for a standard apartment. For an operation of this type, the amount that a financial institution could lend would be $93,480,818, while the initial payment would be around $548,502 per month.In addition, the monthly income required to access this mortgage loan would be $2,194,008, with a down payment of USD 24,155, equivalent to 25% of the value of the property. It is also necessary to have an additional reinforcement to cover the real estate commission, which averages between 3% and 4%, as well as the costs of the mortgage and other expenses.
Therefore, anyone who takes out a loan, in addition to the 25% advance, must have an additional 5% to 7% to cover all expenses.
Requirements and documentation
Requirements vary between banks, although there are similarities. The applicant must be a formal worker (employee, self-employed or micro-entrepreneur), with a minimum length of employment and proof of sufficient income.In addition, it is advisable to have a licensed real estate agent to speed up the process and provide security.
Necessary documents include ID, proof of income, property title deed, and municipal maps.
- Have minimum seniority according to the type of work.
- Demonstrate sufficient income.
- The property must be suitable for mortgage security.
- Proof of income (pay stubs or income certification for self-employed workers).
- Deed of ownership of the property.
- Municipal plans and regulations for co-ownership in horizontal properties.
- Certificate of CUIL–CUIT–CDI.
For those who are employed, it is necessary to have a minimum of one year of continuous employment. In addition, they must present the last three pay stubs (or retirement/pension stubs) and a certificate of employment, validated by a bank or a public notary.
In the case of self-employed workers, a minimum of one year of experience in the activity and proof of registration with the AFIP are required, along with the last three payment vouchers. It is also necessary to present a net income certificate issued by a public accountant with a legalized signature and the last three payment vouchers for the Self-Employed Regime and the Gross Income Tax.
From the time the home is viewed for credit until possession, it is estimated that the entire process for purchasing with a mortgage loan takes around 90 days (Illustrative Image Infobae)
For self-employed taxpayers, a minimum of one year of seniority is required, as well as proof of registration for the self-employed tax and the last three payment vouchers for both the simplified regime and the Gross Income Tax or proof of exemption.
Key factors for prequalification
Bank prequalification is based on credit history, payment capacity and the legal status of the property.“A key aspect is that the quota does not exceed 25% of the applicant's income,” explained Chej Musse.
Banks also require that the property be free of liens or other legal restrictions.
Additional expenses
The process of obtaining a loan includes costs such as life and fire insurance, as well as notary fees.“Knowing these details is vital for effective mortgage loan planning,” said Chej Musse.
Tips
It is important to compare the different options offered by banks in terms of interest rates, terms and fees.In addition, it is advisable to request a pre-approval of the loan to have a clear idea of the amount available. Ibarra added: “This allows you to adjust the search for housing to your budget and many banks already offer this procedure online.”
Scenario and choice of housing
Defining the type of housing and its location is vital. Decide whether you need a house or apartment, how many rooms it has, and consider the amount of expenses if it is a horizontal property. “In times of economic uncertainty, many buyers prioritize units with low expenses,” added Ibarra.
The monthly loan payment must not exceed between 30% and 35% of the applicant's income, depending on the type of work, whether it is in an employment relationship, self-employed or micro-entrepreneur (Illustrative Image Infobae)
Additionally, it is essential to consider additional expenses such as taxes, real estate fees, and moving costs. Including these factors in the initial budget helps to avoid unexpected surprises in the purchasing process.
Market conditions and interest rates
Real estate market conditions and interest rates are key factors when taking out a mortgage. If there is high demand and low supply, prices tend to rise, making the purchase more expensive.Chej Musse said that “if supply exceeds demand, prices can be more competitive, offering a good opportunity to buy. In this context, it is essential to take advantage of moments when the value of the square meter is low.”
In an inflationary environment, initial payments may be more affordable, although they may rise later. “It is crucial that buyers assess their long-term payment capacity, since if inflation exceeds income growth, difficulties may arise,” Ibarra concluded.
www.buysellba.com
