How much money do I need to buy a house? What to consider in your budget to buy a house

MEXICO CITY.- If the purpose of buying a house is included in your New Year’s plans, surely you already know that it is essential to have savings to help you cover the purchase of a property. However, do you know how much to save to buy a house?

Currently, according to housing price index in Mexico of the Federal Mortgage Society, in the third quarter of 2020 the average price of a home nationwide was 1 million 163 thousand pesos, and the median price of 683 thousand pesos.

However, there is no way to know the exact amount you must collect since it depends on your income, if you want to acquire a mortgage loan, the size of the home, its location and services, but know what are the expenses that you must consider within Your budget to buy a house will help you calculate an approximate sum and avoid surprise expenses.

Initial expenses

Credit opening

If you buy your new house through a bank loan, it is prudent that you consider the commission for opening the credit within your budget to buy a house, in case you request it through a banking institution.

Depending on the bank where you apply for your mortgage loan, it can be between 1.0 and 3.0% of the property’s value. Luckily, there are multiple financial entities that offer ways to exempt this payment.

Property appraisal

A property appraisal is an analysis carried out by a real estate expert to determine the current condition of a property and, in the case of a mortgage appraisal, the loan that can be granted for the property.

Generally, to authorize a mortgage loan, financial entities such as banks and Infonavit and Fovissste require a real estate appraisal of the property, a procedure that must be financed by the buyer of the property.

Determining the cost of the appraisal to add it to your budget to buy a house can be difficult, since this process does not have a fixed price, since it changes every 6 months. Also, it usually corresponds to a percentage of the property’s value.

Property down payment

Generally, when calculating how much money you need to buy a house, it is necessary to take into account that an average mortgage loan only covers about 80 to 90% of the property’s value.

This means that the remaining percentage of the property’s value must be covered by the buyer. Traditionally, this 10 or 20% is delivered to the seller when signing the contract of sale and is known as down payment.

Mortgage payment

Paying your mortgage is the most important expense when figuring out how much money you need to buy a home. It is recommended that your mortgage payment be equal to or less than 30% of your monthly income, so that you can cover this payment without sacrificing your quality of life.

To know how much money you will have to pay for your mortgage credit, you can use a mortgage credit simulator, a tool that allows you to calculate the monthly payment of the financing from data such as the total amount of the loan, the interest rate, the term of amortization and the Total Annual Cost.

Notarial charges

The cost of the property deed and registration, as well as the payment of the notary public’s fees are other expenses that you should consider when calculating how much to save to buy a house, since these are not covered by the mortgage loan.

Both the deed and the property registry and the payment of notary public fees vary according to the value of the property for sale, as well as the location where the procedure is carried out.

Tax payment

Another payment that is made during the deed of the property and that you must include in your budget to buy a house is the payment of the Property Acquisition Tax (ISAI).

Similar to notary fees, the ISAI payment changes according to the entity where the sale and purchase process is carried out. In Mexico City, the minimum fee for paying ISAI is 207 pesos and 92 cents, while the maximum fee is 918 thousand pesos.

Knowing the charges that you must cover when investing in a property will help you create a budget to buy a house efficiently and thus avoid damaging your financial situation.

If you are ready to buy your new home, at Vivanuncios, eBay’s real estate portal, you can find thousands of houses and apartments for sale throughout Mexico with the features and amenities you are looking for.

– .