Buying a home is such an important operation in your life that you will not be able to leave any space to improvisation. If not, it will be a process that requires a lot of planning and a certain degree of dedication. To the point that if you do not understand any of its phases, you will have no choice but to request the services of a professional to help you with its management: lawyer, real estate advisor or administrator. With a single purpose and that is none other than to satisfy the objectives of your demand. To facilitate this work, we offer you some simple recommendations on the steps you have to face to correctly channel this procedure.
For this to be the case, you must calculate what is the budget you have to close the operation. Although you have to go a little deeper and analyze how you are going to pay it. If in cash, through a mortgage or through an intermediate solution. If you opt for any of the last two proposals, you will be obliged to check with your bank. Not only to calibrate if they are going to grant you the financing request. But also to confirm what interest you will have to pay, if the fixed or variable interest mortgage is more beneficial.
The evolution of Euribor will be the reference point to choose one or another financing model. It currently stands at - 0,095%, the lowest rate since its inception. and that will help you to get a more competitive interest on your mortgage. It will also be the time to verify what your repayment term will be and the commissions that your hiring entails.
Third key: choose the property
On these parameters you will already be in a position to guide your demand and what type of home is best for you. New, second-hand or even officially protected housing. In addition, it will be of great use to you check your location. Where it will be of special relevance to have data as important as the offer that the area of schools, hospitals, supermarkets or public transport has.
The marketing channels you choose will also be of vital importance. Because depending on whether they are individuals, real estate agencies or developers, you can carry out one or another negotiation strategy. The home visit will not be a less relevant part of this process. Not in vain, it will be the confirmation of the property you are looking for. To the point that it will be necessary for you to write down which are the aspects of the house that you like the most and least. It's even time to formalize your own offer. Consulting all kinds of doubts you have. From the purely structural and that are linked to the conservation of the property to other more generic such as the expenses of the neighborhood community or if you have the energy certificate.
Third key: signing the contracts
The next step will be to draw up a contract with the seller detailing very relevant aspects of the home. For example, check if the property is free of charges or if liens are maintained on it. It will also reflect the price that the neighborhood community will cost you or the form of payments in which the operation will be formalized. They are some of the contents of the contract for the sale of the home. You will also need to sign the deposit contract. As important as the house deeds themselves because, among things, it will help you protect your rights as a buyer. In addition, it will serve to advance 10% of the operation.
Fourth key: finally writing
The final moment comes when you will have to sign it together with the seller and in the presence of the notary. It will be the official document that legitimizes the real estate operation. Where The most relevant aspects of the property will be exposed. Its description, price, method of payment or distribution of expenses will be part of its content. From this moment you can enjoy your new home.
Reverse mortgages
However, you should not confuse it with what a reverse mortgage is. It is a product that has much more to do with investing than with buying a home. They differ in the age from which they can be hired. In this class of products it is from 67 years. That is, in the precise retirement time and that allows to obtain in this period of life a fixed and guaranteed income that complements the pension. Beyond another series of technical considerations that we will try to explain below.
This option allows seniors with home ownership to receive an additional monthly income, keeping the ownership of their apartment and its use and enjoyment while. Because in effect, financial institutions market it under these commercial constants and customers can choose between different formats of these characteristics. Although the structure is the same for all reverse mortgages, the main difference that is generated resides in the fact that the minimum age to contract it oscillates approximately between the 65 and 75 years. Where it stands out for a very special fact: the older the age, the shorter the term to cover it.
Have a home without charges
Reverse mortgages have a built-in guarantee of waiting, which consists in that while one of the holders of the mortgage pension lives, they will not be asked to repay the debt. While on the contrary, eIn the event of the death of one of the owners, the other may continue to collect the aforementioned rent. The only requirements are to be over 65 years old and have a home without charges. There are also no requirements regarding the minimum income that the holder of the loan has.
It can be a very interesting proposal for the elderly to be in a position to obtain an important source of income. Especially in those who have a small retirement that does not help them to maintain a certain purchasing power in the golden years of their lives. To the point of having more than one problem to live comfortably.
Average interest rate on mortgages
For the mortgages constituted on the total of properties in March, the average interest rate at the beginning is 2,58% (2,3% lower than in March 2019) and the 23-year average term, according to the latest data published by the National Institute of Statistics (INE). Where it also shows that 60,6% of mortgages are at a variable interest rate and 39,4% at a fixed rate. The average interest rate at the beginning is 2,27% for variable rate mortgages (7,1% lower than in March 2019) and 3,24% for fixed rate mortgages (4,1% more high).
For home mortgages, the average interest rate is 2,62% (0,1% higher than March 2018) and the average term is 24 years. 58,1% of home mortgages are at a variable rate and 41,9% at a fixed rate. Fixed-rate mortgages experienced an annual rate increase of 24,5%. The average interest rate at the beginning is 2,34% for mortgages on floating-rate homes (with a decrease of 2,7%) and 3,11% for fixed-rate mortgages (1,6% higher) .
Average interest for homes
With regard to mortgage loans with registration changes, the official report indicates that the total number of mortgages with changes in their conditions registered in the property registries is 6.507, 12,7% more than in March 2019 . Taking into account the type of change in conditions, in March there were 5.113 novations (or modifications produced with the same financial institution), with a 10,7% annual increase. For its part, the number of transactions that change entity (subrogations to the creditor) increased by 24,2% and the number of mortgages in which the owner of the mortgaged property changed (subrogations to the debtor) increased 9,5%.
Within the group of mortgages with changes in their interest rate conditions, it should be noted that the study by the National Institute of Statistics (INE) points out that of the 6.507 mortgages with changes in their conditions, 42,5% are due to modifications in interest rates. After the change in conditions, the percentage of fixed-rate mortgages increased from 7,9% to 16,8%, while that of variable-rate mortgages decreased from 87,1% to 82,3%.
Where the Euribor is the rate to which the highest percentage of variable rate mortgages refers, both before the change (77,9%) and after (77,8%). After the modification of conditions, the average interest on fixed rate mortgages decreased 1,6 points and that on variable rate mortgages decreased 0,8 points.
With regard to mortgage loans with registration changes, the official report indicates that the total number of mortgages with changes in their conditions registered in the property registries is 6.507, 12,7% more than in March 2019 . Taking into account the type of change in conditions, in March there were 5.113 novations (or modifications produced with the same financial institution), with a 10,7% annual increase.