Acquiring the first home , move house, buy a car or choose the school your children are situations that usually do not really ask ourselves until it’s time to take the plunge. But what happens when we have to face making these decisions?
Many times we feel lost at the lack of information or, conversely, overwhelmed by the volume of documents and data to be collected and understand. Prior information is vital to help us that the way to our future home is as easy as possible.
Aware of the headaches that can cause buy a new property and as a result of our experience, we collected all the steps of the buying process you have to consider.We started?
12 Step By Sept Process of Buying a Home
- Know your budget.As a starting point it is necessary to know the maximum amount you can spend to purchase. The next question is: how can I calculate the “ideal monthly payment”?
- Inmobiliaria we recommend that the amount destinies this purchase does not exceed 35-40% of your net monthly income stable. In addition to this calculation, it is important to consider the money saved in case you have it.
- Choose the payment method.Having passed the first phase, which accounts budget know, it’s time to decide how to pay for the new building. In this sense there are different options:
- The cash payment, represents the total outlay of the price agreed with the seller; usually it materializes by delivering bank check to the seller simultaneously with the signing of the deed of purchase.
- The mortgage loan is a bank product that allows you to receive an amount of money for the purchase of a property. All loans normally have acquired specific guarantee as homeownership, but know that in addition to the above, also responds loan with present and future assets of the debtor. Depending on the age of the buyer and other circumstances, there are financial institutions that offer repayment periods of up to 40 years. Typically, banks offer up to 80% of the property value, 20% must come from the savings of the buyer. In this regard,
- The mortgage subrogation is the change of ownership of the debtor on the mortgage, positioning the new debtor in the same rights and obligations than the previous one . It is highly desirable that the lending financial institution surrogacy accept us prior to purchase so you have to apply at the same entity as the seller keep the home mortgage you will acquire character. Subrogation has the advantage of saving tax costs for the constitution of a new mortgage, but has the disadvantage that the amount, economic conditions and repayment terms of the mortgage are already preset and can not adapt to your needs; in this case you have to expose your creditor financial institution needs to negotiate an extension of the loan amount, or to modify economic conditions, or to increase the repayment periods, or all at once. At the time of formalizing the deed of subrogation, be implemented what is called a deed of novation of the loan in which collected will include modifications to mortgage the original they have been agreed with the bank.
At this point you should talk to your bank and also assess the period within want tore pay the loan, as longer – term, the monthly fee will be adjusted but obviously the final interest burden increases. Use simulators available on the websites of financial institutions or request a study on your branch. However, before deciding, it is important to have different offers from banks, to assess the economic conditions offered and products linked in some cases requesting entities (payroll, insurance, direct debit …) so that you can apply more advantageous conditions.
- Search and decides the housing type. Once you know your budget, finding housing starts. What kind of housing you looking for? New home, second – hand, free or protected … Here we share a brief explanation of the features and advantages of each.
- New housing: they are newly built homes that have not been transferred to third parties since its construction, also called first transmission housing. Your purchase will normally be taxation for VAT .
- Second – hand housing: is those houses that have already been transmitted at some point. Normally they are homes that have been inhabited, so we must pay special attention to state where they are and the work to be carried out in case it is needed; However, within the range of real estate owned homes you can find housing banks and individuals that are not first transmission really are homes brand new since they have never habit ado.
- Social housing, is one that has a more affordable price than the existing market and is intended to sectors of the population that are more difficult to access a home. This type of property has economic and tax advantages and access to them must meet certain personal requirements and / or economic. They also often entail obligations and limitations should you know in each case.
Besides the type of property, the location will also be decisive in making the decision.Depending on your needs, you will need to know the infrastructure that has the district hospitals, shops, schools, supermarkets, public transport, green spaces …
- Choose the vendor. If you already have determined the location of your future home and accounts with a target price, your searches will be much more productive. It is important to note that the negotiation and facilities when buying a house are conditioned by the selling for you opt.
- It allows you to interact directly with the person selling the house so that negotiations are more direct and fast, although there is the disadvantage that you are not advised by professionals and may arise unwanted technical and legal problems. Being owned homes will have to be attentive to the state and preserving it.
- Enlist the help of a real estate consultant to accompany you, advise and counsel throughout the buying process can be very useful because it will show those properties that best suit your needs and budget, while solve all your technical, financial, and legal concerns.
- Acquiring a property directly from a developer guarantees you the facilities of living in a new house but have to keep in mind that sometimes the choice of housing will have to be plan and this can make the final choice. Keep in mind that every construction site , and more if purchased plan has some degree of uncertainty as to their proper completion depending on different factors. You can request the promoter that will contribute to your satisfaction guarantee if you are to give advance payments before notarize.
- People who decide to buy a flat owned by a bank can take advantage of many benefits and preferential conditions in mortgage lending.
- Visit the home and inspects the community.When you have selected the home you want, the visit will be key, in a few minutes you will have to inspect the property and imagine living in it. During your visit you take along a notebook to take notes, one meter for checks and camera or mobile phone to photograph those aspects that appeal to you. What you have to fix? Look at the room layout, orientation of the house, ventilation of bathrooms and kitchen, the walls, the state of the electrical installation, painting, layout of walls and doors, nearby businesses, noises … Take advantage of this time to ask for the energy certificate.
- Ask neighbors. Who better than your future neighbors to find out about life in the community? The owners are the ones who know the conditions of the property, plus you can put the current payments and inform the community of the existence of possible spill. Take advantage of your visit to the house to chat with them, get information and, why not make new friends.
- Make an offer.When the time comes to position itself as a buyer of the apartment is the time of bidding. Depending on the Autonomous Community, seeking potential buyers discounts ranging between 10% and 30% of the initial sale price, although in certain urban areas of large capital the discount margin is almost testimonial.
- Go to register property. Once you are clear that you have visited this house is your choice, it is important to know the registered data concerning the description of the property , which will have to adjust to what you visited, since reality physics can be different from the registration description, check the ownership and loads that may weigh on the property to take no last minute surprises. For such circumstances you should go to register property in which the property is registered and request a simple note . This type of information we apply ourselves, the seller or a real estate advisor. The price varies depending on the urgency and the manager who made the request, ranging between 9 and 20 $.
- Confirm that you authorization mortgage.Although the bank is difficult to decide on the granting of mortgage without all the information, try as much as possible not advance money until you confirm the viability of mortgage credit requested.
- Inspects the house again.Not more make a second visit to the house to answer any doubts that have arisen and we confirm that this is our future home before formalizing the process. Also, if you can accompany someone else, the visit will be more productive and you have a second objective opinion.
- Sign the earnest money contract.This document is the first contract is usually signed and is equally important that the scriptures of the house as it seeks to safeguard the rights of both buyer and also the seller. When the signed contract arras usually overtake the seller up to 10% of the housing. You have to keep in mind that by signing the earnest money contract assume certain rights of delivery of housing but also certain obligations are not complied ultimately could convertible loss given money. Therefore it is important among other things that the deadline to formalize the purchase that should indicate in the contract arras realistic (about 30 days from the date of signing the contract arras ) because if you have to apply for the mortgage loan the bank will have to perform some preparatory work (housing tax, internal authorization request …) that are delayed a few days.
- Signature writing. In this approach made the seller and buyer notarized declare their willingness to buy and sell, as well as the essential conditions of sale. The buyer, in general, has the right to choose the notary. Furthermore, in the act of signing the notary checks the capacity and legitimacy of both parties. In addition to writing the above description should include housing, state of charge , the agreed price, form of payment, the tax applies, and the sharing of expenses.
- Energy certificate. This title evaluates how effective a building in terms of energy consumption and it is essential to present it at the signing of the memorandum for the notary approves the operation of purchase . It must appear included in the deed of purchase.
- Proof of payment of the last IBI.
- Certificate of the homeowners.
- Copy decennial insurance, if any.
- Processing costs and taxes.Often buyers obviates the costs of buying housing and is a significant outlay since the price of housing must be added between 10% and 12% of the price shopping.
The main Expenses are:
- Taxes derived from the purchase as the ITP and VAT.
- Buying a new home first transmission is subject to VAT, 10% .
- The acquisition of a second – hand housing do not pay tax but the tax on property transfers (ITP), the percentage varies depending on each province and / or community.
- Goodwill Municipal, also called Tax Municipal on the Increase in Value of Land It is a tax directly established by the municipalities, who are responsible for its management. In any case, unless otherwise agreed to be included in the writing of this tax must be paid by the seller.
- Notarial charges. Fees are derived from the production of writing.Normally it is agreed that they are assumed by the buyer.
- Registration fees in the Land Registry. It is responsible administrative institution to formalize ownership of advertising real estate , as well as the rights and burdens that fall on them.
- Note that if you apply for funding through mortgage loan will have to add to that the taxes necessary for its constitution, whose very approximate amounts you will facilitate the financial institution itself. These expenses are: Notary fees for preparing the mortgage deed, registration in Registry tax ( tax of stamp duty by the constitution mortgage) and fees of the private agency responsible for processing the documents. If no precise financing for the purchase, you have time and a little patience you can avoid the expense of agency, carrying documents you directly to the Treasury and the Registry.
- Finally, you have to look to whether or not other expenses or mortgage-related products, such as home insurance, life insurance, loan origination fees.
- Remember to change the ownership of the supplies.Already you are the owner of your new home! Do not forget to appear as such in supplies affecting the house.
- It retains all documents. Do not throw any documents, receipts and invoices related to the acquisition, you never know when you may need.
- And of course …Do not forget to pick up the keys, controls, and other documentation of housing.
Enjoy your new home!