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How to buy a property with a mortgage loan: everything you need to know to be successful - Infobae
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www.infobae.com
November 14, 2024
In order not to rush into the purchase decision, it is vital to first know whether it is better to select a home or obtain a mortgage loan. Experts provide recommendations to avoid risks
By Jose Luis Cieri
Couple walks through the apartment with intentions of buying (Illustrative Image Infobae)
Buying a home is one of the most important financial decisions in the lives of many families, and when it is done through a mortgage loan, planning becomes even more crucial.
Unlike other investments, this process requires detailed preparation, from assessing the financial situation to knowing financing options and long-term costs. For a safe purchase, it is key to make informed decisions and move forward without rushing.
According to economist Federico González Rouco , from the consulting firm Empiria and an expert in mortgage loans, the first step should be to ensure eligibility for a bank loan. “If someone has the house of their dreams, but no bank will lend to them, it makes no sense,” he warned Infobae .
It is recommended that prospective buyers first secure credit, or at least the possibility of obtaining it, and then begin searching for a home at the same time. Comparing banks is a relatively simple task that should focus on evaluating interest rates, repayment terms, cancellation costs, and the maximum amount of financing offered by each entity.
“With this information in hand, the buyer can identify which bank offers the best conditions for their needs,” said González Rouco.
It is vital to get the numbers right in order to access mortgage financing to be able to buy the home.
Soledad Balayan , from Maure Inmobiliario, advised: “The first thing you should do is review your personal financial situation. Starting the search for a home without meeting the minimum requirements to access a loan is unfounded.”
It is essential to know in detail the characteristics of the different financing options available; however, it is even more important to thoroughly analyze family finances, taking into account income, monthly expenses and savings.
In the Almagro neighborhood, the average price per square meter is USD 1,845, which is equivalent to USD 79,335 for a standard apartment, according to Real Estate Report. For a transaction of this type, a financial institution could lend an amount of $76,756,613, with an estimated initial payment of $450,372.
The monthly income required to access this mortgage loan would be $1,801,488, and the buyer would need USD 19,834 for the down payment.
“Prequalification allows you to know with certainty the available budget, which facilitates a more realistic and safe search. In addition, it is recommended that any reservation of the property be made ad-referendum of the approval of the credit, to avoid inconveniences if the financing is ultimately not approved,” he said.
As an initial step, it is crucial to apply for credit and obtain a prequalification, which provides a clear idea of the budget available for the purchase. If the buyer decides to make a reservation, this must be conditional on credit approval, and it is advisable to make this explicit at the time of reserving the property.
It is advisable that any reservation of ownership be made ad-referendum (meaning that the reservation is contingent upon confirmation of certain additional conditions or terms) of credit approval, thereby protecting the buyer in the event that financing is not approved.
“Taking the time to properly structure your finances and analyze all credit options not only makes the purchase easier, but also allows for greater long-term security,” Balayan said.
The process of buying a property can take up to 90 days, from choosing the property to taking possession (Illustrative Image Infobae)
Ideally, the monthly loan payment should not exceed 30% to 35% of the applicant's or family group's income, although this percentage may vary depending on the applicant's type of employment, whether it is an employee, self-employed or micro-entrepreneur.
The bank will also calculate loan eligibility based on job stability, seniority and proof of income.
For employees, a minimum of one year's seniority is required, as well as the last three pay stubs and a certificate of employment. Self-employed and micro-entrepreneurs must present their registration certificate and proof of payment, along with a certificate of income issued by an accountant.
The property must also comply with legal requirements and not present restrictions such as liens, since the property will serve as mortgage collateral.
Life and fire insurance are also included to protect the investment of the bank and the buyer.
On average, from property selection to taking possession, the entire process can take up to 90 days.
www.buysellba.com
Source:
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Para no apresurarse en la decisión de compra, es vital saber primero si conviene la selección de la vivienda o la obtención del crédito hipotecario. Expertos brindan recomendaciones para evitar riesgos
www.infobae.com
November 14, 2024
In order not to rush into the purchase decision, it is vital to first know whether it is better to select a home or obtain a mortgage loan. Experts provide recommendations to avoid risks
By Jose Luis Cieri
Couple walks through the apartment with intentions of buying (Illustrative Image Infobae)
Buying a home is one of the most important financial decisions in the lives of many families, and when it is done through a mortgage loan, planning becomes even more crucial.
Unlike other investments, this process requires detailed preparation, from assessing the financial situation to knowing financing options and long-term costs. For a safe purchase, it is key to make informed decisions and move forward without rushing.
According to economist Federico González Rouco , from the consulting firm Empiria and an expert in mortgage loans, the first step should be to ensure eligibility for a bank loan. “If someone has the house of their dreams, but no bank will lend to them, it makes no sense,” he warned Infobae .
It is recommended that prospective buyers first secure credit, or at least the possibility of obtaining it, and then begin searching for a home at the same time. Comparing banks is a relatively simple task that should focus on evaluating interest rates, repayment terms, cancellation costs, and the maximum amount of financing offered by each entity.
“With this information in hand, the buyer can identify which bank offers the best conditions for their needs,” said González Rouco.
Financial situation
According to the real estate market, it is important to evaluate the family's financial situation as a whole, taking into account job stability, savings capacity and the ultimate goal behind the purchase.
It is vital to get the numbers right in order to access mortgage financing to be able to buy the home.
Soledad Balayan , from Maure Inmobiliario, advised: “The first thing you should do is review your personal financial situation. Starting the search for a home without meeting the minimum requirements to access a loan is unfounded.”
It is essential to know in detail the characteristics of the different financing options available; however, it is even more important to thoroughly analyze family finances, taking into account income, monthly expenses and savings.
In the Almagro neighborhood, the average price per square meter is USD 1,845, which is equivalent to USD 79,335 for a standard apartment, according to Real Estate Report. For a transaction of this type, a financial institution could lend an amount of $76,756,613, with an estimated initial payment of $450,372.
The monthly income required to access this mortgage loan would be $1,801,488, and the buyer would need USD 19,834 for the down payment.
Should you choose the property first?
Balayan suggests that property selection should be a step after bank prequalification.“Prequalification allows you to know with certainty the available budget, which facilitates a more realistic and safe search. In addition, it is recommended that any reservation of the property be made ad-referendum of the approval of the credit, to avoid inconveniences if the financing is ultimately not approved,” he said.
As an initial step, it is crucial to apply for credit and obtain a prequalification, which provides a clear idea of the budget available for the purchase. If the buyer decides to make a reservation, this must be conditional on credit approval, and it is advisable to make this explicit at the time of reserving the property.
It is advisable that any reservation of ownership be made ad-referendum (meaning that the reservation is contingent upon confirmation of certain additional conditions or terms) of credit approval, thereby protecting the buyer in the event that financing is not approved.
“Taking the time to properly structure your finances and analyze all credit options not only makes the purchase easier, but also allows for greater long-term security,” Balayan said.
More vital aspects
Among the first steps to acquire a home, once the bank has been selected, the interested party must request a credit pre-qualification, a key process to evaluate the amount of the loan and ensure their ability to pay.
The process of buying a property can take up to 90 days, from choosing the property to taking possession (Illustrative Image Infobae)
Ideally, the monthly loan payment should not exceed 30% to 35% of the applicant's or family group's income, although this percentage may vary depending on the applicant's type of employment, whether it is an employee, self-employed or micro-entrepreneur.
The bank will also calculate loan eligibility based on job stability, seniority and proof of income.
Documentation
The bank will require specific documents, including ID, proof of income, proof of CUIL/CUIT/CDI and the property title deed, as well as municipal plans in the case of horizontal properties.For employees, a minimum of one year's seniority is required, as well as the last three pay stubs and a certificate of employment. Self-employed and micro-entrepreneurs must present their registration certificate and proof of payment, along with a certificate of income issued by an accountant.
The property must also comply with legal requirements and not present restrictions such as liens, since the property will serve as mortgage collateral.
Additional costs and deadlines
In addition to the initial advance payment, the buyer must plan an additional 5% to 7% to cover all transaction costs, including real estate commission and notary fees.Life and fire insurance are also included to protect the investment of the bank and the buyer.
On average, from property selection to taking possession, the entire process can take up to 90 days.
www.buysellba.com
