Having possessions always leads to greater stability. Therefore, if you want to be a landlord and have financial solvency, you should take the step and buy a house.
Having a house of your own, you can modify it to your liking or make some reforms. Also, your children can inherit the property and thus you will secure them a roof for their future.
If you decide to rent the house, you will transform it into an asset and you will start getting performance from it. If, on the other hand, your economic situation worsens or you want to live elsewhere, you can always sell the property.
To check in a practical way that it is the right time to buy an apartment or a house, we offer you a new tool, a calculator which helps you to know firsthand the expenses you will have to face in this real estate transaction. So that you get rid of doubts and make the best decision!
This is what you need to apply for a mortgage
Like the vast majority, we imagine, you won’t be able to pay for a house in cash and in a lump sum, therefore To tackle the purchase of a home you will need to apply for a mortgage loan.
Banks must guarantee the payment of mortgage installments for the entire life of the mortgage and therefore they usually do not approve all requests. There are a number of conditions you must meet for the bank to finance the purchase of a house.
Salary and stability are key to getting a mortgage. You must have a guaranteed income so that the bank knows that it will be able to collect the mortgage payments every month without problems, installments that cannot exceed 35% of the net income.
To check your employment status, they will ask you for the employment contract. In this sense, civil servants and employees with permanent contracts will fare better compared to those who have fixed-term, work and service contracts or who are unemployed. the self-employed, For their part, they must have a stable business with demonstrable benefits for at least the last two years before applying for the loan.
There is no minimum age to apply for a mortgage, but being young it will be more difficult for you to be solvent. On the other hand, banks usually require that the mortgage be no more than 70 years old when the mortgage is due.
Seniority and the absence of outstanding debts are also requirements that banks will take into consideration.
The mortgage, fixed or variable rate?
The mortgage we request can be at a fixed or variable rate. With fixed rate mortgage installment and interest rate they stay the same for the entire term of the mortgage loan. The repayment term is usually shorter and offers higher interest rates.
Adjustable rate mortgage It involves changing the interest rate each period, so the fee may vary. With this type of mortgage, the repayment period is usually longer and the interest rates are lower than those of fixed ratesalthough they are subject to changes that occur in the markets.
Expenses related to the purchase of a house
Banking institutions finance, at most, 80% of the home’s appraised or sale value. Like this, You must have saved the remaining 20% in order to pay for admission.
Acquiring a property means having to deal with it a series of expenses related to the sale and mortgage, 10% approximately, such as the public deed at the notary, taxes or registration in the Land Registry.
The cheapest cities to buy a house in Spain
When buying a house in Spain, the price can vary greatly depending on the region. The list of the cheapest cities includes Palencia, Ciudad Real, Lugo, Zamora, Soria, León, Castellón or Alicante.
Conversely, the highest prices to buy a property are recorded in Barcelona, Madrid and San Sebastián.
Is 2023 a good time to buy a house?
The war in Ukraine, the increase in interest rates, the expected economic slowdown in the coming months… We are currently in one a situation of change and variation…
The Euribor should close 2022 above 3% and everything indicates that it will continue to skyrocket next year. In this way, the increase in the cost of mortgages and the tightening of requirements by the banks will make it very likely that the demand for housing decreases.
Many families may postpone their plans and leave the idea of buying a property for later. However, many analysts also agree that, after the first quarter of 2023there are chances of a good time to buy a house on convenient terms.
The tool to clarify your expenses
To help you decide whether to buy now or wait a while to acquire a property, we suggest using this calculator which, in a simple and fast way, will allow you to see in a personalized way the expenses you will have to face if you decide to take this important step.
