Buying a home or apartment for the first time is an exciting experience that requires an informed decision. Not sure where to start? How much money do you need?; How do mortgages work?
The money for the purchase of a property is generally obtained through a mortgage loan. This is a contract where a borrower receives from a creditor an amount at a specified cost and time, whose payment guarantee is the house itself. Although it is not the only way to pay for a home, it is the best option to get it.
We spoke with Fernando Soto-Hay, founder and CEO of to Hepatica Facile, to resolve any doubts. Fernando considers that there are positive credits and negative credits: the positive is one that allows you to acquire items that tend to retain their value over time, buy equipment or services to grow a business, personal activity or that allow you to build equity. This is the case of mortgage credit, a vehicle specifically designed for this purpose, focused on the long term and with lower interest rates than other financing mechanisms.
According to Fernando, there are 3 basic points to consider when applying for your mortgage loan:
Buy the house you can afford: Make sure you can afford the house you want; that is, you can allocate 30% of your monthly income to the payment of the mortgage loan. If you can live on the remaining 70%, you are ready to take this step. You must credit 3 times this income: if you want 1 million, you must credit 35 thousand pesos; 2 million, 70 thousand; 4 million, 140 thousand pesos.
Try to save between 25 and 30% of your income to have enough money for the down payment. In this way, the purchase of your house does not become a point of stress or anxiety in your life.
Save previously: In addition to having cash flow for the monthly payment, it is a good idea to prepare 20% of the value of the house for the down payment and initial legal procedures. Make sure that the loan to be acquired is not for more than 80% of the value of the property.
Acquire 15-year debt: In a 15-year loan you amortize up to 60% more capital than in a 20-year loan. For every million pesos in 15-year credit, you will be paying $ 11,500 pesos per month, while in the 20-year loan you will allocate $ 10,500 pesos; the difference is not very big and you will be able to settle faster.
A fundamental part of La Haus is helping people find their ideal home, and we are sure that the most important tool is knowledge. As part of the support we provide to make the shopping experience easier, we also help answer questions about loans and financing options. Some myths or prejudices that we have encountered and that it is important to dispel:
1. Banks seek to keep the house. FALSE, since it does not benefit them to keep the property. What they do is lend the money with a guarantee called a mortgage, to have a way to get their money back with a benefit, which is the interest you pay.
2. If the house is mortgaged, you cannot sell it. FALSE, you can rent or sell the property since the house is YOURS. It is important to clarify that if you sell it, at the time of signing the deed you must deliver the balance of the current credit to the notary to make the payment to the bank, and in this way, the guarantee to transfer the property is released.
3. The interests are sky-high. FALSE, there are those who even say that a mortgage loan leads you to pay up to 3 times the value of the house. The reality is that you pay an average of 1.5 times the original value of the property, in a period of 15 years. In this time, your house also gains a new value, but even without counting that, the mortgage loan is a great alternative to get a property.
4. Many requirements are needed. FALSE, basically you only need to prove two things: that your income is stable since this is the guarantee of the payment of the credit; and that you have a good credit history, which serves to ensure that you are a person who is compliant with your payments. It also opens the doors to more attractive credit options in different financial institutions.
Find out and meet your goal of acquiring a home of your own. Buying a property is a way of saving because it forces you to meet your payments month after month, and at the same time, satisfy a need. Find the right advice and create your assets; for any questions, contact us.