Although it is a very important step, buying a house requires adequate information, since there are many steps and actions to take into account, in addition to different people and institutions being involved.
The following tips for buying a home can help you make an informed decision, considering the different stages of the process.
1. Find out everything about the house you are going to buy
If the house is second-hand, the first thing to do is request the title of the property and make sure that the property is free of debts or is compromised in another credit. To do this, just go to the Public Property Registry to request a document that indicates the situation of the house before that institution.
It is also helpful if you visit with an expert to help you estimate what kind of modifications it might need.
2. Check if you will have the necessary financing
Before choosing a mortgage loan, it is necessary to know the value of the home you want to acquire. You can use our BBVA Valora tool to review its approximate value.
Evaluate the differences between a fixed-rate and an increasing-rate home loan. Know its characteristics in What type of mortgage credit to choose? and verify which is your best option before acquiring your credit.
Remember that the cost of a loan is more than just interest, as it is necessary to calculate other expenses outside of the value of the house. More than the interest rate, it evaluates the Total Annual Cost (CAT), an annual percentage indicator that adds up some extra costs.
3. Calculate the down payment and other initial expenses
One of the tips for buying a home is how to best use the down payment. The more savings you allocate for the down payment, the lower the financing and the monthly payments.
The down payment is not the only initial payment, other expenses such as appraisal and notarial expenses, among others, must also be added. He considers that not all states or municipalities require a commercial appraisal, and the bank appraisal is only for credit authorization.
Keep in mind that you should never give money as a down payment or deposit without a contract that formalizes the operation.
4. Don't forget the notary and the deed expenses
The notary will draw up a deed stating that you will be the new owner of the home and that you are mortgaging it in favor of BBVA Mexico for the credit it granted you. The notary must verify, among other things, that the person who sells you is the owner and that the home is regularized.
The deed is the document that the notary drafts and authorizes and is made up of the lien certificate and the proof of non-debts. These documents represent the majority of the notary's costs and the rest are your notary fees plus VAT.
Finally, when buying a house there are two compulsory payments that you must cover as a buyer: the property acquisition tax, which is a percentage of the value of the house, and also the registration fees in the Public Property Registry. Consider that some co-financing schemes with INFONAVIT or FOVISSSTE may contemplate the payment of a part of these expenses. Remember that, in some cases, it is possible to cause Acquisition Income Tax.
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