When is a good time to buy a house?
You don't get the stability that comes with having your own home by renting it out, plus many other advantages you get if you own the home you live in.
However, buying a property is not something that should be done without thinking, you have to think a lot and find the right time, because the payment to be made is high and the mortgage is usually for many years.
In this article we are going to offer you a tutorial about the moment in your life when you can consider buying your home.
These are the factors that you must take into account:
Having a sufficient and regular income
The first thing to consider is whether you have a fixed income that will allow you to meet your mortgage payments.
Mortgage loans usually have a repayment period of 30 years or more, and you must pay the monthly instalment contracted with the financial institution.
Be clear that you want to settle down definitively
Buying a home involves your long-term establishment in a location. This makes you lose the ability to move to another town, province or country if your job or your partner's job forces you to do so, although you can always put your house up for rent and rent another one wherever you have to go, but it's already more complicated.
The fact of getting married and starting a family is something that also pushes you to take root in a place, so it will be another factor that will make you decide to buy a house, as long as you can afford it.
Consider whether the real estate market in your area maintains competitive prices
The purchase can be made to individuals, through Internet portals, developers, real estate agencies or banks, but always visit the property before and make sure that the real estate market in the area maintains competitive prices to ensure the best offer.
Have a low or no debt level
In order to apply for a mortgage loan, it is necessary not to have large debts. The maximum amount that you must devote to the payment of debts must not be more than 40% of your income.
Banks will not lend you money if you have another mortgage, or credit cards and personal loans that total more than 40% of your monthly income.
You can opt for a fixed mortgage, with a constant interest rate and payments, although currently higher than those of an adjustable rate mortgage.
Another option, in the event that the house you buy is still mortgaged, is to make a subrogation of the loan, which involves changing the ownership of the mortgagor and you take charge of what remains to be paid.
Having saved enough to pay 80% plus purchase and mortgage costs
Another factor to take into account is that you have saved enough to pay 80% of the mortgage loan, plus the costs of buying and selling and managing the mortgage.
There may also be other expenses and commissions, such as the opening fee, although it is usually possible to finance this.
Nowadays it is difficult to find mortgages that offer 100% of the appraisal value.
A mortgage entails a series of expenses, such as the appraisal, which must be paid to the client, and which range between 200 and 400 dollars. To this expense, you must also add the VAT, which will be 10% if you buy a new house.
In the case that you decide to buy a second hand one, you must pay the Tax of Patrimonial Transmissions that, depending on the autonomous community, oscillates between 5% and 10% of the notarized price of the house.
Other expenses that exist, and that it corresponds to pay to the bank, are the following ones:
1. The Tax on Documented Legal Acts, for which you pay between 0.1 and 1% of the value of the house.
2. The notary's office expenses, with fees between 0.1 and 0.5% of the price of the property.
3. The registration expenses, which have as expenses the payment of the simple sheet, to verify the ownership of the house and its charges; and the registration of the deed of sale.
4. The agency fees, which are not limited by law, and vary between 150 and 300 dollars.
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