Having your own home is the goal of many people and a dream that is not too far from being fulfilled. Closing this first purchase depends a lot on your good financial status and your planning capacity, therefore, it is good to think twice before embarking on a mortgage that you later cannot pay.
Facing a purchase with as many implications as that of your first home is one of the most important life decisions you can face. As experts we know that buying your first property is a personal adventure. For this reason, we wanted to put together some tips so that the final purchase agreement is the most beneficial for you and you can start building your own home.
Don't sign anything you can't pay
This seems like very basic and redundant advice, but when you are exploring purchasing options you can get carried away by the characteristics of some properties that exceed your budget and it is easy to think that a little more will not be a problem. However, you should find out the financing alternatives and the types of mortgage loans you can use. There are three types: fixed rate, variable rate and mixed rate. Analyze each option to make sure you choose the one that best suits you.
Before putting your offer on the table, you should be sure that you can pay for it, either with the money from the sale of your old house, with a loan or with a mortgage. Otherwise, debt can become a headache. In this sense, you have complete freedom to contract life insurance for a mortgage, both with the financial institution that grants it to you and with your trusted insurer.
Don't buy until you have sold
Related to the previous advice, if the money you are going to use to buy this home is going to be obtained by selling real estate, do not sign a purchase contract until you have the money from the sale in your hands. This will avoid surprises that the market may cause, such as a drop in prices that makes sales difficult.
Evaluate what you are looking for
To start looking for options, it is good that you are clear about what you expect from this first home. Details such as size, location, layout and access to public transportation are important and determine the final price.
Start buying
Once you are approved for credit, it is time to start the final purchase. For this, it is important that you have a real estate agency and, above all, keep in mind that you should not sign anything that you have not previously read, understood and discussed. In these cases, it is best to have an agent so that you can ensure that the contract reflects the buying and selling intentions of both parties. This is known as a deposit contract and is the most common when it comes to already finished homes.
What should appear in this document? All the necessary data must be stipulated to verify the identity of both parties: identification, information about the home, amount of the deposit, type of contract established and final total to be paid.
If you have any further questions regarding this, please contact us. We will resolve any questions you may have.