Financial solutions for property purchase
You have arrived at that moment in life when the dream of home ownership is taking shape and is more than ever palpable. But despite wanting to, you still have doubts about how to buy an apartment.
In fact, this is one of the biggest financial decisions in a person’s life. If you’re dying to get out of rent and conquer the dream of owning your own property, keep reading this article that will surely help you fulfill your desire!
How to organize for the purchase of a property
To enter the dream of home ownership, it is necessary to keep the following ideas in mind:
Make a simulation of your household budget
It’s no use wanting to take the step bigger than your leg, as debt can snowball. List all the expenses that are involved with the cost of home ownership.
Save money and try to save
The only way to buy a property is to have money for down payment. If you haven’t started yet, now is the time to start a booking. Also try to eliminate all unnecessary expenses. Well-executed financial planning is a way to achieve your goals.
Being one of the most important topics, you should ask yourself the following questions:
- What size property do I want?
- How many bedrooms and bathrooms do I need?
- Is a garage needed?
- Will it be new or used?
- Can it be on the plant or a finished property?
- What minimum and maximum amounts am I willing to pay?
- Is it necessary to buy furniture or is it already furnished?
- Do I want something more in this property? Example: condominium with swimming pool, gym, etc.
At this point you already know what you want and how much you believe you can afford, so it’s time to roll up your sleeves and start researching. There is no other way to know if it is viable or not without researching prices, location, among other details, to continue with the next step.
Schedule visits to preferred properties
You already have your favorite properties, right? You can now contact brokers and make the visits to be sure. See if you can take pictures and have a list of your priorities for the future home.
Evaluate the budget
This is the last step before making a decision. With the values of the properties chosen, have the following questions answered before taking any action:
- How much is needed for entry?
- What are the paying ways?
- What is the deadline for payment of the purchase?
- How many times will it be possible to split it up?
Then it’s just a matter of evaluating which budget fits best with your reality!
Credit options for the purchase of property
It would be great to be able to purchase a property on sight, but we know that this is a privilege for few people. The vast majority of people depend on some type of financing or loan to access the dream of home ownership.
Therefore, it is essential to research the existing alternatives and analyze which one fits best with your profile. Therefore, we have separated some of the options:
- Housing Finance System: is a credit line from the Federal Government that uses resources from the FGTS and the Brazilian System of Savings and Loans. The term of the financing can be extended up to 35 years, with an interest rate of 12% per year. You can finance up to 80% of the property’s value;
- Real Estate Financial System: like the SFH, the SFI is a credit line, however, with the difference that the second has no maximum limit for the property’s financing value. As well, there is no maximum ceiling for the buyer’s income commitment and, because of that, the interest is higher;
- Personal loan: you can do everything without leaving your home, from researching the best financial institution to waiting for credit release. Having the necessary care for sites with certificates and reputable is one of the least bureaucratic and faster ways. Interest depends on the amount and time of the loan;
- Loan with vehicle guarantee: this modality is a great option for those who have a car, as it gives you the option of placing your vehicle as a guarantee for payment of the credit line. One of the great advantages is that interest rates are lower due to the risk of not paying since the risk of default is minimal.
How to apply for a loan to purchase a property
To obtain the loan needed to purchase your property, you will need:
Separate the following documents (varies from modality to modality):
- Marriage certificate (if you are married);
- Proof of residence;
- Certificate of debts related to federal taxes;
- Income Tax Statement;
- Work card;
- FGTS extract;
Ask the following questions before comparisons and simulators:
- What is the property’s value?
- How much do you intend to give as a down payment, in addition to the FGTS?
- What is the amount you think about financing/taking the credit line?
- How much of your budget are you likely to use?
Remember that the questions above can define the right modality for you to use when purchasing your property. Don’t forget that interest rates are different for each of them;
If you opted for a loan, you can use the following simulators:
- Staff ;
- Vehicle warranty.
Attention to extra costs
In addition to the costs built into the values of a loan or loan, there are other costs to consider:
- ITBI: the Real Estate Transfer Tax is mandatory; must be paid by the buyer at the time of the purchase transaction;
- Registration: this certificate will update the property registration with your name. After the procedure is done, the property is officially yours;
- Bank assessment: is a fee charged by banks to carry out the inspection of the property and all documentation, if it is done by financing;
- Insurance: in the case of financing, it is mandatory to pay this fee;
The effort is worth it
Even though there are many obstacles to conquering your own home, there is no way not to agree that the result is worth it.
After all the tips above, what do you highlight as the most difficult point to get the necessary credit line? Let us know in the comments below to find out more!
Are you unsure where to start your apartment buying journey? So be sure to check out the e-book “Search and Acquisition of Property: A Jornada”, to prepare even more with detailed information, and understand more deeply how to buy your property.