Here the 5 tips for investors that will make it easier for them to buy your California house in 2021.
- Save 20% of monthly income
One of the tips to buy a most used house is to make a budget, including the income and expenses of a house. In this analysis, 20% of the income should be allocated to savings, 30% to fixed expenses (such as housing services, transportation, food, etc.), and 50% to personal or eventual expenses.
This saving will make it possible to collect for the down payment of the property, for the first monthly payment of a mortgage loan or for other notarial expenses that must be made in order to start the sale process.
It is worth mentioning that these percentages may vary depending on the financial solvency of the buyer, as well as their needs.
- Carry out an analysis and quotation of the desired homes
It is important to begin with an analysis of the needs that the buyer requires in a home, as well as a list of desired locations and prices of properties for sale.
This will help in the first instance, to establish a goal of time in which the buyer will have to collect the savings for the real estate transaction, while it will give an idea of all the requirements that will have to be collected to acquire the property.
Whether it is a new or used home, all properties need some initial investment in addition to the appraisal and the down payment, so planning and knowing the price, payment methods, and future needs of a home will be very useful.
- Open a savings account and invest in the short term
Savings accounts are very useful financial products for those interested in buying a home. They are generally offered by banking institutions and, as a main feature, they can increase the money saved by a smaller percentage.
This percentage increase depends on factors such as rates of return and the amount of money invested by the bank (with the owner’s permission). In this way, savings accounts not only protect investors’ money, they also increase it and use it productively.
Through these investments, buyers minimize the risk of spending money, while passively generating profits.
- Reduce personal or family variable expenses
Carry out a progressive cut of those expenses that represent a daily imbalance in the finances of a family and that in the long run impede the economic solvency necessary to cover the payments of a mortgage.
Variable expenses refer to outflows that occur eventually and without being planned. Being able to reduce these expenses will not only help the family budget and meet previously established savings goals, it will also provide a long-term benefit.
- Comply with the work requirements to apply for a mortgage loan
Some workers who want to buy a house in 2021, surely do not know the necessary requirements to apply for a loan, or do not know the ideal conditions to do so.
Due to this, government institutions such as Infonavit and Fovissste, make available to their beneficiaries easy ways to know their status as a creditor of a mortgage loan, what requirements they need to meet to finally access this benefit.
For this reason, it is advisable to consult and compile all the necessary documents to begin the transaction without haste or, otherwise, use your own income to contribute enough money to the Savings Sub-Account and get the necessary points (Infonavit 116 and Fovissste 100) , to request a prequalification and later a mortgage loan.
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