living place
In Spain, owning a home is one of the main goals of any family, we still have in mind the mantra of “Renting is throwing money away” and that “housing is a magnificent investment because it always rises.”
Today, unfortunately, many have realized the error of this approach. That the house also drops in price-
Buying a home is complicated, it always has been and always will be. Therefore, we are going to analyze what should be your personal and financial situation and thus know which house you can aspire to, which is the most important thing, and if this fails us, we will also see how to facilitate the granting of the mortgage.
Because you must be very clear that if due to your economic and personal situation you cannot afford a home, or the home that you would like, you should not even remotely apply for a mortgage.
There are direct and indirect factors that have an influence on determining which house you can afford, depending on your situation:
Direct Factors
Age: Age is a fundamental point to know what housing we can get.
On the one hand, at a younger age you can opt for longer-term mortgages. This has the advantage that the monthly payments to be paid are lower but the disadvantage that the interests that you will end up paying in the end will be higher.
However, an older age has a very important positive point. And the fact is that the older you are, it is assumed that the more time you will have had to save, so you will already have a good part of what the house costs in your pocket.
From my point of view, they have greater benefits those who have patience, they rent for a longer time, they save every month for their home and when they find the house that interests them, at the price they are looking for, that is when they buy.
Economic profile: That is, what is known as payment capacity. Your monthly income determines the maximum amount you can request. At the time of the real estate boom there were many entities that offered amounts with which the monthly installments were even up to 50% of the income that applicants regularly had.
Now, the maximum amount to which any applicant for a mortgage can aspire reaches the 33% of monthly income that it owns although the entities prefer to opt for percentages closer to 25% of them to avoid getting their fingers caught in any operation. This is what it should have been from the beginning, it seems that finally the banks have gained some sanity and are doing things well.
And this is not a bad thing, it is precisely a cap that you should put on yourself so that you do not have future problems to pay for the house.
It is very important that analyze carefully your financial situation and see if you meet a series of non-negotiable points. Without them you should not get into buying a home.
- Have saved at least 20% of the price of the house.
- The mortgage payment would not have to exceed 35% of the total monthly income of the household.
- The price of your home should not be higher than 6 times your net annual salary, that is, what you take “clean” each year, tax free.
If you do not meet any of these points do not worry, you no longer have doubts. You cannot afford to buy a house and must continue to rent, until you do.
Personal circumstances: By this we mean the marital status, number of members that make up the family unit, their ages, etc.
Together they are a factor that determines how much of the monthly income can be used to repay a debt and therefore they determine the amount that you allocate to your future home.
Analyzed so far the factors that directly affect the house that you can aspire to, we enter into more indirect factors, but that also have an important influence.
Indirect Factors
The existence or not of guarantors: The existence of guarantors who support your application also has a considerable influence on the house that you can choose.
Entities now do not want under any circumstances to keep an unpaid property, and that is why they are looking for guarantors with high monthly income (even if they have other mortgaged properties).
Anyway, I do not recommend at all that you have to use guarantors for the purchase of a house. If that is the case, I think it is much more advisable to look for a home that you can afford for yourself, without the need for guarantors. If you need an endorsement, it is because the housing is beyond your means and you should avoid buying. You will save a lot of future problems in case you have payment problems, since the guarantor could even end up losing his own home, as is currently happening.
The apartment itself: The quality of the home itself and the area where it is located also has an important influence.
If the house is located in a residential area, where the average price of the apartments is similar, in case of default, the financial institution has much easier to resell it.
If, on the contrary, the house were in an isolated area, poorly communicated, then the financial institution would have much more difficult to resell it in case of non-payment.
The first option is clear that it favors the applicant when opting for one home or another.
If you can’t get to buy the house you want, don’t get obsessed or try to cover more than you can. The consequences can be dire for you and your family. You just have to turn on the television these days to see thousands of families and people who have lost their homes.
Keep renting, save money, and with patience, you will end up with a home that you like and that if you can afford it.
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