Buying a flat or a house is one of the most important decisions in a person’s life. What’s more, in a good majority of cases, it is only taken once and its consequences will be felt for many years. Before deciding if we are going to become owners, it is convenient to have some information and clear up some doubts that may arise along the way. There are all kinds of them, and they are all legitimate, from those related to the type of mortgage we want to contract to everything we must check before stamping our signature on a sales contract.
Therefore, we have included some of the most common questions in six major sections that you must take into account yes or yes when you decide to take the step and become the proud owner of a real estate. From El Confidencial, by the hand of Ibercaja, we have prepared a guide that will help you clear up those questions and choose the home and mortgage loan that best suits your needs.
1. How I want my ideal home to be
It may seem like a truism but, before making other decisions, it is essential to know what we want. Or do we plan to get on the first floor that crosses us? The minimum requirements we are looking for can be answer very simply: How many meters am I looking for? In what area? Do I want it to be a new or second-hand apartment? Do I want to make reforms? Will I need a garage and / or storage room? Do I have a family or plans to have one? Is it going to be a first or second residence? If all of them have an answer, you are more than clear that you want to mortgage yourself.
2. Let’s talk about money: how much to ask and how to pay it
Another of the essential points of any mortgage loan is the figure that we are going to request. This type of credit usually has more advantageous conditions than personal loans, although it is necessary to meet certain requirements. The first, that your ability to pay (your income minus expenses) is satisfactory. Or, in other words, that the fee to pay does not exceed 35% of your income. The second, the appraised value of the house, which will allow you to know how much money you can ask the bank. Finally, the percentage of financing you request. Currently, banks do not usually grant more than 80% of the appraised value, to which must also be added the expenses derived from the sale, which are usually around 10% of the sale price.
3. Don’t leave anything to chance regarding your new home
Registrations, taxes, defaults … There are many scares that we can take a posteriori, so it is smart to do a series of checks to verify that everything is in order in the property that we are going to acquire. For example, in the Property Registry we can see if the apartment or house we buy is free of registration charges; it can be verified that they are not leased to third parties; that the IBI receipts are up to date (if they are not, a reduction in the purchase price can be agreed); that the community fees are paid or other documents such as the energy efficiency certificate.
4. What is the best mortgage for me?
Fixed or variable? It is one of the great questions that ordinary mortals ask themselves when taking this step. You can find out the answer yourself. Do you want a smooth experience while always paying the same fee? Bet on the fixed. Do you prefer to risk and pay less out of the box, knowing that market fluctuations will review your quota every 6 or 12 months? Headlong for the variable.
Keep in mind that in addition to the maximum 80% of the appraised value, the mortgage will include other expenses such as management, notary, registration, appraisal or the tax on documented legal acts. Fortunately, currently the client you only have to pay the appraisal.
When you receive the offer from the bank on duty, you will also have other information of interest at hand. For example, the equivalent annual rate (APR), which will allow you to compare the conditions with other entities; the maximum amount of the credit and its duration; the conditions that, if met, may carry bonuses; the conditions required for the possibility of an early reimbursement and its costs; and, finally, the resulting monthly fee.
5. Who handles all the paperwork?
Although considering the application for a mortgage loan may seem overwhelming at first, the truth is that an important part of the procedures derived from it they will be made by the same bank that facilitates credit. Everything so that the client only has to worry about looking for the best possible floor.
Among the procedures that the bank will be in charge of carrying out are the signing of the deeds before a notary, the payment of the house in the agreed terms, its registration in the property registry, the payment of the necessary taxes and even changes of direct debits that are necessary. Now that you are going to start a long-term relationship with your bank, let this help you get started in the first moments, which can seem the most complicated.
6. Do I need home insurance?
If you wonder if there is a home mortgage loan, the answer is yes. The apartment is a guarantee of the loan so it is necessary to preserve its value during its life. But beyond this situation, it is always convenient to have both a continent insurance, which can protect us from possible damage or those that we cause to the neighbors, as well as content, to keep our personal belongings safe in case of theft. or domestic accident. Being insured against eventual incidents is always a good choice.
* El Confidencial, in collaboration with Ibercaja, helps you resolve doubts related to your mortgage and other financial matters. If you want to know more information, click here.
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