Now that you’ve found the house of your dreams, it’s time to think about how you’re going to pay for it. At this stage housing credit is usually the main way to finance the purchase of a home, so it is critical to follow some tips to have the cheapest credit on the market.
Dreaming does not cost, but buying a house costs a lot!
Buying a home is an important time in your life, even if it is not the first. The choice of the property as well as its financing carry a great responsibility, so the best you can do to ensure your quality of life is to ask yourself these two basic questions:
What is the maximum amount you can pay for the house?
What is the space in your family budget for housing loans and all associated expenses? At this point, we recommend that you visit a mortgage simulator and study different scenarios in terms of amount, term and interest rates.
What are your future plans?
Already have children and do not plan to have more? Is it a house for a couple only? Think about your future goals and choose a house with a size appropriate to them.
Two realities not to forget before asking for financing to buy your home:
- Buying a home is a relationship for the long term.
- Finished the days of the financing to 100%
Two ways to have access to cheap housing credit
Provide guarantees to the bank
If they ask you for money, what else will you worry about? Find out if the person will eventually have money to pay you back, what is your consumer profile and what your level of indebtedness , right? Banks do the same. They will lend money to clients who offer guarantees that they will be able to repay the money. Thus, you must demonstrate with facts that you are a reliable customer, through your employment contract and your income , your effort rate , “clean” bank statements or a low level of indebtedness .
Have money to give as input
On these days it is no longer possible to buy a house only with the money from the bank. For impositions of the Bank of Portugal will have to have at least 10% of the value of the acquisition to give entry. The entry further compromises the buyer and reduces the risk of the operation, which reduces the cost. Not everything is bad!
Negotiate your fees
There is (almost always) room to negotiate! If the offer offered by your bank is not the most advantageous for you, do not forget to try to negotiate your rates. There are products and services that you can hire and that can lower your spread, as is the case of the Housing Credit Life Insurance.
The next step will be to simulate your installment and deal with all the formalities to finally have the house of your dreams.