Times of uncertainty such as the one we are currently living in due to the coronavirus causes economic instability. Although this 2021 has become the year in which house prices have dropped. A positive aspect to acquire a property.
However, buying a home is not a decision to be made lightly. From the HelpMyCash bank comparison they answer the question of who can afford to buy a home. The economic situation in which we find ourselves is the best indicator to know in advance the possibility of investing in a property. We must assess whether we have sufficient solvency to face the acquisition and ultimately calculate if we can assume the payments of a mortgage.
–
–
What you should know before buying a home
The money saved to buy a home generally does not cover the entire price of the home. Buyers go to their bank to ask for a mortgage. Banks normally finance 80% of the operation, although on certain occasions this percentage may be higher. Therefore, 20% is what the potential owner must pay. Although the bank to accept financing will also take into account own funds that will allow the expenses related to the sale to be made, such as taxes, notarial and registry fees, among others and equivalent to 10% of the value of the property.
Another important element that will tell us if we can buy a house is calculate if it will be possible to meet the payment of fees. To do this, it is recommended to consult the conditions of several mortgage loans (online or directly at the office of various banks) and make sure that the monthly payment does not exceed 35% of the net monthly income of the holders. This percentage is the maximum recommended by experts to dedicate to the payment of financial debts.
In the case of variable mortgages, a different criterion is followed that is more difficult to find out since its interest is related to an index (usually the Euribor) and can vary from time to time. A solution as they recommend from HelpMyCash is ask the bank how much the fees would increase in different scenarios in order to know if they could be paid in each situation.
Likewise, some banks offer discounts on the interest rate in exchange for contracting other services such as an account with the entity, insurance or a pension plan. Experts warn that in this situation we must pay attention to the installments that the loan would have when we were in a critical situation, that is, when its maximum interest was applied.
On the other hand, remember that these are not the only expenses when buying a home. To the mortgage payment periodic expenses are added such as the IBI receipt, home insurance, the products that are contracted together with the mortgage loan, municipal rates, etc. They insist that these ancillary costs be added to the total calculation over a year.
However, the main advice is to take into account the employment situation. To do this, we must reflect on the time we have been in the company, the salary and the type of contract. In addition, this information is decisive for a bank to provide us with the financing of the mortgage.
– .
