The Best Tips Before You Buy the Housing of Your Dreams.
Acquiring our home, or buying a car or finding a new job or
looking for the best school for our children are situations that we do not
normally consider until it really is time to take the plunge. But what happens
when we have to face these decisions?
It is normal that on these occasions we feel lost in the
absence of information or, on the contrary, exceeded by the volume of documents
and data to be collected and understood. Having prior information is vital to
help us make the purchase of our future home as simple as possible.
Aware of the headaches that can cause to buy a new property
here you have all the steps of the purchase process that you have to take into
account.
1. Find out What Is
Your Maximum Price Before Starting the Search.
THIS IS THE FIRST THING YOU MUST DO , knowing how much you
can spend, because if the numbers according to your financial capacity say that
you can only access a house of € 80,000, do not waste your time visiting real
estate that has a price higher than this amount.
As a starting point it is necessary to know the maximum
amount that you can allocate to the purchase. The next question is: how can I
calculate the “ideal monthly payment”?
I recommend that the amount you allocate to this purchase
does not exceed 35-40% of your stable monthly net income. In addition to this
calculation, it is important to consider the money saved in case you have it.
Keep in mind that banks in most cases will only leave you 80% of the appraisal
price, so the other 20% has to be money FROM YOUR POCKET, that is, money saved.
2. How Will You Pay It?
Once you know what budget you have, it is time to decide how
you pay for the new property. In this sense there are different options:
The cash payment represents the total outlay of the price
agreed with the seller; normally it is materialized by the delivery of a bank
check in favor of the seller simultaneously to the signature of the deed of
purchase before a notary.
The mortgage loan is a bank product that allows you to
receive an amount of money for the purchase of a property. All loans normally
have as a specific guarantee the acquired home itself, but you must know that
in addition to the above, the loan is also responsible for the present and
future assets of the debtor.
Depending on the age of the buyer and other circumstances,
there are financial institutions that offer more or less long repayment terms;
it’s all about negotiating the best for you.
The mortgage subrogation consists in the change of ownership
of the debtor in the mortgage, positioning the new debtor in the same rights
and obligations as the previous one. It is very convenient for the creditor to
accept the subrogation prior to the purchase, so you will have to request it in
the same entity that the seller maintains the mortgage of the home you are
going to acquire. Surrogacy has the advantage of saving fiscal costs with
respect to the constitution of a new mortgage, but it has the disadvantage that
the amount, economic conditions and repayment terms of the mortgage are already
fixed and may not be adapted to your needs; In this case, you must expose your
credit institution to your needs to negotiate an extension of the loan amount,
or to modify the economic conditions, or to increase the repayment terms, or
all at once. At the time of formalizing the deed of purchase with subrogation,
what is called a deed of novation of
the loan will be implemented in which the modifications to the original mortgage loan that have been agreed
with the bank will be included.
At this point you should talk to your bank and also assess
the term in which you want to repay the loan, since, in the longer term; the
monthly installment will be more adjusted, although logically the final
interest charge increases.
You can use the simulators available on the websites of
financial institutions or request a study at your branch. However, before
deciding, it is important to have different offers of banking entities, in
order to assess the economic conditions they offer, as well as the related
products that in some cases the entities request (payroll, insurance, direct
debits …) so that they can apply more advantageous conditions.
3. Until You Already
Know How Much You Can Spend, the Search for Your New Home Begins
Once you know your budget,
the search for housing begins. What type of housing are you looking for? New,
second-hand, free or protected housing… Next, we share a brief explanation of
the characteristics and advantages of each of them.
New housing: they
are new construction homes that have not been transmitted to third parties
since their construction; they are also called first-transmission housing. Your
purchase tax will normally be VAT.
Second-hand housing:
these are those houses that have already been transmitted at some time.
Normally they will be homes that have already been inhabited, so it will be
necessary to pay special attention to the state in which they are located and
the work to be carried out in case it is necessary; However, within the real
estate offer of second-hand homes you can find homes of banks and private
individuals that although they are not first transmission, they are really
brand new homes since they have never been inhabited. Their taxation will
normally be by ITP / AJD.
Protected housing:
it is one that has a more affordable price than the existing one in the market
and that is destined to the population sectors that present greater
difficulties to be able to access a home. This type of property has economic
and fiscal advantages and to access them, a series of personal and / or
economic requirements must be met. They also usually entail obligations and
limitations that you should know in each specific case.
In addition to the type of property, the location will also
be decisive in making the decision. Depending on your needs, it will be
necessary to know the infrastructure that the neighborhood has: hospitals,
shops, schools, supermarkets, public transport, green areas…
4. Who Are You Going
to Buy
If you have decided on the location of your future home and
have an indicative price, your searches will be much more productive. It is
important to keep in mind that the negotiation and facilities when buying a
house are conditioned by the type of seller you choose.
Individuals: It
allows you to interact directly with the person who sells the home so the
negotiations are more direct and quick, although there is the inconvenience
that you are not advised by professionals and may arise unwanted technical and
legal problems. When dealing with second-hand homes, we must pay attention to
the state and conservation of the same.
Real Estate Agencies: Having the help of a real estate advisor who
accompanies you, advises and advises during the entire purchase process can be
very useful, since they will show you those properties that best fit your needs
and budget, while solving all your technical concerns , financial, and legal.
Promoters: Acquiring a property directly from a
developer guarantees you the facilities of living in a newly built house,
although you will have to keep in mind that, on occasion, the choice of housing
will have to be made on the plan and this can make the final choice difficult.
Keep in mind that every work under construction, and more if purchased on a
plane, has some degree of uncertainty as to its correct completion depending on
different factors. You can ask the promoter to provide guarantees to your
satisfaction if you have to deliver amounts on account before writing.
Banks: People who decide to buy a flat owned by a
bank can take advantage of many advantages and preferential conditions in
mortgage loans.
5. Touch Visit the
Housing.
When you have selected the home you want, the visit will be
key, in a few minutes you will have to inspect the property and imagine living
in it. During your visit, take a notebook with you to take notes, a meter to do
checks and the camera or mobile phone to photograph those aspects that attract
your attention. What do you have to look at? Observe the distribution of the
rooms, orientation of the house, the ventilation of the bathrooms and kitchen,
the enclosures, the state of the electrical installation, painting, the
arrangement of the partitions and doors, nearby businesses, the noise … Take
this moment to Ask for the energy
certificate.
Ask the neighbors. Who better than your future neighbors to
inform you about life in the community? The owners are the ones who best know
the conditions of the property; they can also update you on the payments of the
community and inform you of the existence or not of possible spills. Take
advantage of your visit to the house to chat with them, get information and,
why not, make new friends.
6. Make an Adequate
Offer
When it is time to position yourself as an apartment buyer,
it is time to make an offer. Depending on the Autonomous Community, potential
buyers request discounts ranging from 10% to 30% of the initial sale price,
although in certain urban areas of large capitals the discount margin is practically
testimonial.
Go to the property
registry: Once you are clear that that house you have visited is your
choice, it is important to know the inscribed data related to the description
of the property -which must be adjusted to what you have visited, since the
physical reality may be different from the description register, check the
ownership and the charges that may weigh on the property to avoid last-minute
surprises. To know such circumstances you must go to the property registry in
which the property is registered and request a simple note. This type of
information can be requested by us, the seller or a real estate consultant. The
price varies depending on the urgency and the manager who makes the request,
ranges between 9 usd and 20 usd.
Confirm that the bank grants you the mortgage. Although it is difficult for the bank to
pronounce on the granting of the mortgage without having all the information,
try as far as possible not to advance money until they confirm the viability of
the mortgage loan requested.
Inspect the home again:
It does not hurt to make a second visit to the house to answer possible doubts
that have arisen and confirm that it is our future home before formalizing the
purchase process. In addition, if another person can accompany you, the visit
will be more productive and you can count on a more objective second opinion.
7. The Arras Contract
This document is the first contract that is usually signed
and is just as important as the deeds of the house as it tries to safeguard the
rights of both the buyer and the seller. When signing the contract, the seller
is usually advanced up to 10% of the price of the home. You have to keep in
mind that when you sign the contract you are assuming some rights for the
delivery of the house but also some obligations, whose non-observance could
ultimately lead to the loss of the money delivered.
Therefore, it is important, among other things, that the
deadline to formalize the purchase and sale to be indicated in the earning contract
is realistic (around 30/60 days from the date of signing the earning contract)
as if You have to apply for the mortgage loan, the bank will have to carry out
some preliminary procedures (appraise the home, request internal authorization…)
that takes a few days.
8. Sign the Writing
In this process, the seller and buyer declare before their
notary their willingness to buy and sell, as well as the essential conditions
of the sale. The buyer, in general, has the right to choose the notary. In
addition, in the act of signing the notary checks the capacity and legitimacy
of both parties. In addition to the above, the deed must include the
description of the property, its state of charges, the agreed price, the
payment method, the applicable tax, and the distribution of expenses.
9. Other Expenses to
Take into Account
Many times the buyers obviate the expenses derived from the
purchase of the house and it is an important disbursement since the price of
the house must add between 10% and 12% of the purchase price.
The main expenses are:
Taxes derived from the purchase such as ITP and VAT.
The purchase of a new first transmission home is subject to
the payment of VAT, 10%.
The acquisition of a second-hand home does not have to pay
VAT but the Property Transfer Tax (ITP),
whose percentage varies depending on each province and / or community.
Municipal Goodwill, also called Municipal Tax on the
Increase of Value of Urban Nature Lands (IIVTNU). It is a direct tax,
established by the municipalities, who are responsible for its management. In
any case, unless otherwise agreed to be included in the deed, this tax must be
paid by the seller.
Notarial charges:
Notary fees are derived from the
preparation of the deed. Normally it is agreed that they be assumed by the
buyer.
Registration fees in
the Property Registry: It is the administrative institution responsible for
giving official publicity to the property on real estate, as well as the rights
and charges that they may have.
Keep in mind that if you request financing through a
mortgage loan you will have to add to the above the expenses and taxes
necessary for the constitution of the same, whose approximate amounts will be
provided by the financial institution itself.
These expenses are:
Notary fees for the preparation of the mortgage deed, registration in the
Registry, prosecutors (Tax of Legal Acts Documented by the constitution of the
mortgage) and fees of the agency in charge of processing the documents. If you
do not need financing for the purchase, you have time and a little patience you
can avoid these expenses, taking the documents directly to the Treasury and the
Registry.
Finally, you have to consider whether or not there are other
expenses or products related to the mortgage, such as home insurance, life
insurance, loan opening fees.
And you will have to see if the house needs REFORMS, because
if so, the purchase price could be different when making your offer to the
owner. Consider the approximate cost of how much these works would amount to.
10. Do not forget to
change the ownership of supplies
You are already the owner of your new home! Do not forget to
appear as such in the supplies that affect the house. You must also keep all documents,
supporting documents and invoices related to the acquisition in a folder, you
never know when you may need them.
And of course… Don’t forget to pick up the keys. Now: Enjoy decorating to your liking, what will be your new home!
Read more here: we buy houses company in Houston, TX