How to buy a house – Part 1

Determine the financial situation

  1. Review your financial situation. You’re thinking about buying a house, your finances are going well … or not? Your work situation is at least stable enough? Maybe just you just find a good job and are somewhat hooked on emotion.
  2. Note that purchasing a property is a commitment that can last for many years. It is difficult to speak with certainty of the future, but try to estimate the income you have secured facing the near and medium term; add the amount of your savings to the equation.
  3. Taking into account existing payments. Although there is different credit schemes that allow contributions of your company or the extra support of a financial institution, take into account some figures. According to the consensus among specialists to undertake the adventure of acquiring assets it is advisable to have from the start with the liquidity to pay:
    • The initial deposit of between 10 and 30% of the total value of the property
    • The process of deeds, that is, the cost of putting the title of a property in your name, amounting to between 6 and 7% of its value
    • The commission of the relevant financial institution, which can amount to 2.7% of the amount requested, in case you think apply for credit. In addition, if so, your income should not be jeopardized by more than 30% loan repayment (20 to 25% is ideal). Especially if at all possible, avoid longer maturities to 15 years: true, fertilizers are more expensive, but you could save half a million pesos.

 

How to buy a house – Part 2

Compare the different methods of purchase

  1. Use an estate agent has an obvious advantage: the advice of experts in the field. A good agent can auxiliaries throughout the entire process: help in the diagnosis of your financial opportunities, explain the solemn and convoluted language of legal paperwork and save you the fatigue of visiting properties that do not match your needs.
    • Of course, all this has a cost. The commission of a real estate agency can vary between 4 and 10% of the total value of the property. And less than 4% commission is not necessarily a saving; it may signal an irregular agency.
  2. Make a direct deal. The direct treatment offers the charm of doing business face to face. If you have the ability to haggle, you can get a substantial discount, and even negotiate with goods which cannot rely otherwise as motor vehicles.
  3. Determines whether you can make a trade. Remember that the country is not unusual to see on the street or in newspapers signs like this: “I sell or change for car of the year”.
    • Of course, this kind of business increases the risk of dealing with scammers and deal with properties that have legal problems or debts in tax payments. If you’re faced with an owner who admits, it can be a factor of reduction.
    • In any case (after not tell anyone warned you), it is highly recommended that count on the appropriate legal advice. While negotiations between you and the seller may be hunky-dory, so that the sales contract is valid must be made before a notary public, and that’s definitely your lawyer field.

 

How to buy a house – Part 3

Apply for Credit

  1. Apply for credit that allows including in the operation bank loans or other loans. If the tips have given you have been generous lately, or your sales commissions have been on the rise, some programs let you include tab that kind of income, to increase the amount of credit you can receive.
    • The same interest rate of around 12% and the online portal offers a free workshop for you to decide what kind of credit is the best for you.
  2. Check if you can apply for credit. Now if you are a public sector worker, you can request a credit. According to the mode, you can get a credit of almost one million pesos as one of the beneficiaries of an annual sweepstakes or 100% of the money you have accumulated in the SAR (System Retirement Savings), without having to participate in the draw.
    • But remember that obtaining credit is not winning the lottery. In both cases, you have to design a payment schedule; however, you may not have to carry this responsibility alone.
  3. If you do not work in a formal business or a government body and also your resources are rather limited, it would be worth you to review if you qualify for a subsidy (National Fund Trust for Popular Housing), which grants through various programs (especially in rural areas) and requested at the offices of state or local government.
  4. Mortgage requests, if you do not get a government loan. This is an option is far less cumbersome than government loans.
    • It is true that their programs usually require their customers checking a higher income; also, banks are interested go to your history in the Credit Bureau.
    • The positive is that the interest rate you must pay can be much lower (in some cases up to 8.5%): one or two percentage points less can be tens or hundreds of thousands of pesos in total.
    • Also, according to the design of payment you choose, you can avoid too high a down payment; get a reduction in your monthly payment in times of low income or life insurance, sickness and even unemployment.
    • However, you should be very careful with marketing: a loan with CAT (Total Annual Cost), monthly payments and lower interest rates very likely means that during the first years of the loan not amortize capital. This means that your payments during that period are intended to cover the interest on what you paid the bank and not the loan itself.

 

How to buy a house – Part 4

Method 4 of 5: Find your future home

  1. Scours the perfect home. With a clear picture of your financial situation and once chosen a purchase method, it is time to choose a house.
  2. Scores and ranks the different elements that you’d find in the property you’re looking for. What is more important, the proximity to your work or space to grow your family? A garden provides a pleasant recreation area, but a space where your car left for safekeeping at night sleep will leave you calmer.
  3. Stick to your price range. Check properties through the newspaper, on the ground or through the lists of an agency, keep track of houses that you cannot or should not pay more than a distraction: it can also become too expensive.
  4. Note the area. Do not rush, even if you found the house meets your expectations.
    • In US it is common to find real bargains in disreputable neighborhoods: sometimes just a little research on the Internet to learn about the latest crimes around. And security is not the only factor: maybe the ground floor is very wide, but the nearest supermarket could be half an hour by car.
    • Do not be shy and if you have already visited some property, talk with neighbors to find out the data that you would any real estate agency.
    • Unfortunately, there are rare residential complexes that some builder or certain bureaucratic maneuvers have left with no or intermittent basic services, or defects in the structure because of very low quality materials.
    • To remedy this situation somewhat, since 2014 new housing developers offer quality coverage: a guarantee that it is insured for ten years against design flaws or waterproofing. Asked if the property that interests you has it.
  5. Find out about the future. You should buy a home in a place where gradually replaced condominiums homes on one level? On the other hand, maybe you’ve heard of the “gentrification”: the renewal and reconstruction of some buildings and dilapidated neighborhoods.
    • Buy a small property in a site that is experiencing this process, or will do so soon, it can be an excellent investment in the medium term, but it can also lead to a considerable increase in the cost of living and services. You also may find yourself in an environment very different from what you had planned dynamics.
  6. Re – evaluate your expectations. Sometimes perfection is something that is revealed to you during the search and includes factors that had not previously considered. In such cases, it is also prudent that do not cling irrationally to your initial requirements.

 

How to buy a house – Part 5

Method May 5: Buy the house

  1. Close the deal. You have found the house that convinces you. When signing, releasing the money and occupy the new property. But still you need to be aware of some aspects.
  2. Consult your attorney. This was mentioned above and is reiterated. He or she is the one who can tell you about the legal documents that are needed in a sales transaction and monitor are in order.
    • Some of them are the letter of intent (containing an offer by the buyer and terms of payment), the titration study (by which verified that the property is registered in the Public Registry of Property and Commerce) certificates encumbrance (which ensures, among other things, that the property is not at issue) and no debt prosecutor, as well as an official appraisal.
  3. Be sure to make property transactions before a notary public. The notary public is who is responsible for correctly identifying the property and attest that the documents of both parties are in order.
    • In an ideal world, the notary carry out these actions scrupulously and honestly; in the real world, it is no more than you or your lawyer will inform the holder of the notary’s office where the operation is performed.
  4. Ponders the type of sales contract or suits you best suits your circumstances. The transfer of property from seller to buyer is affected by this contract. A term contract with reservation of ownership will allow you to enjoy the property even if not yet have paid the full amount of the operation (of course, the title will remain with the seller until the debt iniquities).
    • If you are a foreigner, but you want to buy a property in US in one of the so-called “restricted areas” such as beaches, you can do so through a trust with a bank. Be very clear the total price you pay for the house, the time it takes to give it to you and under what conditions.
  5. Take into account that horrible word, the tax. In our country, at the time a real estate transaction, the buyer is required to pay a tax of 2% of the value of it. However, there are some exceptions, such as when a parent gives a property to his son asks if, by chance, your case can be seen in some of them.
    • Using hitch or initial deposit, which must be at least 10%, you can begin the process of legal acquisition. The remainder will be paid according to what they subscribe in the sales contract; normally it is made by signing the scriptures in front of the notary.
  6. Enjoy! You are the new owner!

Tips

  • If you do not have a regular lawyer, be careful when choosing one. Find out about the experience of your prospects and ask for references from them. Inquire among your acquaintances to see if they have someone you trust.
  • If you are applying for a bank loan, you should know your history in the Credit Bureau. You can do this (and seek advice to clean it up, if necessary) here.

Warnings

  1. Note: If a bank loan, but the payment plan you no longer satisfies, US law allows you to transfer it to another bank.
  2. By law, notaries must notify the Financial Intelligence Unit when a real estate transaction goes from the 1.076 million dollars. Developers and estate agents are required to do the same for excess of 540,000 dollars amounts. This is a recent legal provision to prevent money laundering.
  3. You can have the money and maybe lured the idea of ​​taking in suitcases to close a deal, but still cannot use more than 540,000 dollars in cash to buy a house. US law requires that if the transaction amount exceeds this amount, the rest should be paid through a bank instrument such as a check or a transfer.