Review the best tips to buy a house without failing and get ready to take the next step by increasing your family’s assets. Despite it is a very crucial step it entails adequate information because there are many steps and actions to consider and also different people and institutions are involved in the process of buying a house.
The following tips which can be useful when buying a home can be useful when deciding on buying a home with regards to the various stages of the process.
1. Find out everything about the house you are going to buy
If the house is second-hand, the first thing to do is request the title of the property and make sure that the property is free of debt or is committed to another credit. To do this, simply go to the Public Property Registry to request a document that indicates the status of the house before that institution.
It’s also helpful to visit with an expert to help you estimate what kind of modifications it might need.
2. Check if you will have the necessary financing
To approach the question of the choice of the mortgage loan, it is necessary to find out what exactly the value of the house you intend to buy is
Evaluate the differences between a fixed-rate mortgage loan and one with an increasing rate. Learn about its characteristics in what type of mortgage loan to choose. And check which is your best option before acquiring your credit.
Remember that the cost of a loan is more than just the interest, as it is necessary to calculate other expenses outside the value of the house. More than the interest rate, it evaluates the Total Annual Cost (CAT), an annual percentage indicator that adds some extra costs.
3. Calculate the down payment and other initial expenses
One of the tips for buying a house is how to best use the down payment. The more savings you allocate for the down payment, the lower the financing and monthly payments will be.
The down payment is not the only initial payment, other expenses such as the appraisal and notary expenses, among others, must also be added. Consider that not all states or municipalities require a commercial appraisal, and the bank appraisal is only for credit authorization.
Keep in mind that you should never give money as a down payment or deposit without a contract that formalizes the operation.
4. Don’t forget the notary and the deed expenses
The notary will draft a deed stating that you will be the new owner of the home and that you are mortgaging it in favor of BBVA México for the credit it granted you. The Notary must verify, among other things, that the person selling you is the owner and that the home is regularized.
The deed is the document that the notary writes and authorizes and is made up of the lien certificate and the certificates of no debts. These documents represent the majority of the notary’s costs and the rest are his notary fees plus his VAT.
Finally, when buying a house there are two obligatory payments that you must cover as a buyer: The property acquisition tax, which is a percentage of the value of the house, and also the registration fees in the public property registry.