Before carrying out the purchase and sale operation, it is important to take into account some factors that will determine the purchase of the desired property, since when engaging in a credit of 10, 15 or 20 years it is necessary to generate a commitment, not only with the seller / owner and / or the financial institution, but also with your own pocket.
1.- SALARY CONSIDERATIONS:
The Salary is the first thing you should pay attention to, because it depends on you acquire the property, From the total of your net monthly income (and after corresponding deductions) it is desirable to schedule that 30% of i is destined to the payment of the mortgage. We suggest you not exceed this percentage to avoid bleeding your personal finances and, in addition, divide the money, in this way it will give you opportunity to be flexible whit additional expenses that arise along the way. To give an example: if you earn 20thousand pesos, separate six thousand pesos for mortgage payment and make sure you have a significant savings for the down payment.
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- The Down Payment is the amount you will have to pay as a down payment, usually in Mexico, a base of 30% of the total value of the property is established, but it value of the property is established, but it varies depending on the type of mortgage you obtain or of the property is going to be settled in cash. Anyway, it is not bad that you start thinking about this percentage.
- To get a loan, it is prudent to have a clean credit history with no debts. This, will set the pattern to delimit the percentage of credit that the financial institution will grant. Therefore, we recommend that you consult the credit bureau (free service), which gives visibility of the status of your history in this matter, to find out if it is appropriate to liquidate the past due balances, as well as improve your background.
- There are some payment you should keep in mind before taking the big step. For this reason, we suggest that 70% of you salary is more than enough, apart from10 to 20 percent for additional ones such as the property, the notarial procedures and any structural or superficial improvement that you wish to do in the selected space.
- Briefly, we can say that the notarial procedures include the deed (among which are the taxes of the sale of the property), the rights derived from the operation performed and the notarial fees, which are paid 100% by the buyer.
2.- SEARCH PARAMETERS:
With the aforementioned criteria put on the table: with the amount you are going to allocate from your salary to buy a house or apartment, as well as additional expenses also mentioned and with a credit history without penalty, it is time to take the next step, which It is usually the one with the greatest illusion.
All this process is the result of questioning if one wants a new or used property, be it a house or apartment, or if you prefer to buy it under the pre-sale model.
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- PRE-SALE: The figure of the pre-sale of Real estate has the advantage that the buyer acquires a previous property or during the construction process and while paying it at a given initial price is prepared to inhabit it at the moment the developer delivers the keys. This means that the price is taken as an opportunity, but we must not forget that it has a pair of Achilles heels: guarantee delivery times and not be able to live immediately.
- NEW: Buying a new property has the quality that nobody has touched it more than its builders. This brings benefits from the perspective that generally they do not present any damage, but the drawback is that many of these do not come fully equipped with all its components: kitchen, closets, floors, among others. That’s why we suggest you consider every aspect of your decision.
- USED: This type of housing describes itself. It has the advantage that it is easier to negotiate the price taking into account the state of the property. Damages such as cracks, paint, locks or the last waterproofing are a good reference to counter the conditions of the sale, as they are additional expenses that you will have to do to live in an optimal space
- If you are one of the people who prefer to have total privacy, you should look for a house, because it has the advantage of not sharing the cost of maintenance, nor the common areas. However, the majority of the horizontal housing stock detracts from the lack of security, which is often found in vertical housing developments, which becomes an additional expense in maintenance when living in the apartment.
3.- RESOURCES FOR THE SEARCH
Not long ago, The search for property was a weekend theme, where you took the family for a drive and took don the phones that are displayed outside the properties and then dial and get in touch with the owner or Real estate agent.
- Using Real estate ports optimizes the time of those interested, proving greater visibility of properties (in terms of volume) in less time. At the moment you enter the portal, check the description well, place where the dimensions of the properties for sale, the distribution (room, bathrooms, living room, garden, etc.), facilities, services and amenities are presented, Pay attention to the photographs of the house or apartment, these have to be of good quality giving a real picture of what you will find when visiting for the first time. During the visit, check that it looks exactly as shown.
- Direct contact with the owner. The owner does not always have the experience that an agent or Real estatesales consultant has, that is why you will be the o who asks the questions and tries to be very incisive taking into consideration the points that we have already addressed in this property Purchase Guide
- Deal with an intermediary / Real estate Agent. This type treatment the protagonism of the owner, who gives the responsibility of the sale of property to a Real estate Agent, Broker or intermediary. This usually has preparation in the Real estate business and will take you by the hand throughout the process to be your guide, whether you work independently (have your own brand of Real estateagency) or be part of an agency real estate already recognized in Mexico.
- Deal with the Real estate Development sales team: When it comes to a new property, it is possible that the Real estate project of you interest has a “showroom” or sales booth whit a person who attends you. This person, whom we will call sales consultant, like the Real estate agent is the one who will give continuity throughout the process, from the first vist, teach the documentation, even in many cases, follow up the credit issue
4.- VISIT THE PROPERTIES
- Review of the state of the property. Each time you visit a property option, we suggest you do the following exercises: Open and close keys, closets, doors, etc… make sure they all work without problem. Check that the gas, electricity and water installations are in good condition, without leaks, that turn on all the dampers, that water comes out of the tap and that it serves the lever of the toilet correctly. Take a look at the surrounding streets and the colony on foot, make sure it is the place where you want to live, observe the state of the asphalt, if you have the opportunity to talk with a neighbor to give you their opinion, maybe you know the owner of the property you are visiting. It locates the polices stations, firemen, Nearest medical Center. This will help you have more peace of mind in the long run
- Property and services: Ask the owner, agent or Real estate consultant to show you the current payment of the property tax and all services such as electricity, water, maintenance (in case of loving in group or condominium.
- The Structural Safety Report, which guarantees that the property is in optimal conditions to be inhabited. If you do not have this one, you can ask a Director Responsible for Work (DRO) or Structural Security Correspondent (CSE) to do a study. It also requests the plans and the deed to confirm that the property is in the name of the owner and there is no impediment to the operation. Many of the current developments have sustainability certificates, to demonstrate that they are friendly to the environment; It would be pertinent for you to ask about them.
- Never commit ti deposit or transfer money to someone you have not met in person.
- Always try to verify the identity of the person you are dealing with and confirm that it is really a Real estate Agent or the owner.
- Search for properties in reliable Real estate Agencies or trusted websites click here
- Always insist on inspecting the property for yourself. If the owner or Agent say that it is not possible to do it for some reason or another, or is not available discard the agreement
5.- DECISION-MAKING PRIOR TO PURCHASE OF THE PROPERTY
Do not close, we advise you to make more than one visit so you can compare and go for the best option for your pocket and lifestyle. Compare will always be a good opportunity to analyze the pros and cons of each of the spaces that interest you.
- Price Comparison of the select colony: One of the easiest ways to compare prices of the selected colony, is to resort to Real estate portals, where you can examine more than 10 properties with similar characteristics and with it, make the final decision. Doing this will save you lot of time and provide you with a wider visibility into the behavior of market prices.
- You can also take the phone and call numbers of other properties, even if they are not of your interest to know the prices that are being offered in the area of interest. It is also important to make an analysis of the strengths and weaknesses of all properties previously visited, here you are at least steps from making you dream come true
- Strengths: The things that make more coherence in your search are those that become your strengths; everything that you liked, from the property to the seller’s treatment.
- Weaknesses: Everything that makes you noise, that does not match your search parameters, which detracts from you evaluation. Consider choosing the owner with the most strengths over weaknesses, if you reach a tie, return to the analysis taking into account aspects that you had not previously addressed.
6.- FINANCING OPTION
After choosing the property for sale that fits all your criteria or parameters, proceed to go to any financial institution to apply for a mortgage
- Mortgage Credit:
Traditional, This type of loan works under the loan scheme of financial institution, assigning the borrower a certain amount that must be paid in installments during a certain periods of time (10,15,20 years). Its peculiarity is that it is only granted by an institution and nor in conjunction with others.
Co-financing, Unlike traditional credit, the co-financing scheme works when a financial institution whether it is called private banking or public bodies (infonavit or fovissste) approves a loan, allowing the borrower to leverage another financial resource (credit from another organization). It has the peculiarity that can increase the amount of the loan
Conjugal, Unlike the aforementioned, the conjugal credit, as the name implies, is ti collect the amount that each of the indiciduals that make up a conjugal partnership raised in its history of Infonavit or Fovissste. The advantage is that they can be combined both the score and the request for a loan in private banking to increase their credit capacity
Infonavit, The Institute of the National Housing Fund (infonavit) For Workers is an institution where the workers sector, the business sector and the government unilaterally contribute. It is a mortgage that aims ti help those who want to buy a home (new or used) as well as those who want to build a home on their own land. In addition, if you later plan to espand, repair or improve the property, it is possible to obtain financing for these purposes. And if it is necessary to pay the mortgage that was obtained from another financial institution, such can be with the Infonavit
Fovissste, The Housing Fund of the Institute of Security and Social Services of State Workers (Fovissste) is an entity that has the objective of granting mortgages to Mexicans who work in a public institution. So, it is very possible that, if you are interested in buying a home and work in a state agency, consider the Fovissste to obtain financing, for this, we inform you,briefly, what are some of the best-known credit modalities that this housing fund confers
Commercial Bank, Commercial banking is the set of banksthat execute operations of liabilities and assets, such as deposits, loans, as basic investment products. How will you bank evaluate you? Once you have chosen an institution to applyfor a mortgage, you will be studied and qualifield, Your credit history and income will be thoroughly reviewed: one, two, three… as many time as the bank deems necessary. At the Time of evaluation, bank are usually interesed in your debts, unpaid payments of other credits or if you have ever declared bankruptcy or evaded financial responsabilities of any kind.
7.- FORMALIZE THE PURCHASE
In the purchase contract it is essential that all points are put on the table without exceptions, both the obligations of the seller and the buyer, the final amount negotiated, as well as the conditions under which the property will be delivered.
Within the contact the following points should be developed punctually:
- Obligations of the seller to abide by the negotiated price, deliver the property in a timely manner as stipuled in the document, and that the property is free of debits or encumbrances, in addition to being involved in a legal process
- Obligations of the buyer where he finds that he has the financial capacity to liquidate the total amount of the property and where it is assured that he will be the next owner of the property in question.
- Final amount after negotation, showing the compliance of both parties.
- Weel-stipuled devilery dates so that the inconvenience between seller and buyer does nor arise.
- Delivery of documents from both parties to the notary to carry out the corresponding procedures after concluding the payment of the mortgage.
- Notarial procedures:
Official identification of the seller and marriage certificate in case the owner is married and has a co-ownership whit his partner or someone else
In case the seller is a commercial company, request the identification of the legal representative subscribed in the previous deed
have the property title or notarial deed registeres in the public register of property with the information of the location and simensions of the property, the name of the owner and the regime under which acquired the property
Have available the documentation that proves that it is free or service debt, the property tax of the last five years and tax. The letter refers to the mortgages of mortgage loans or problems of seizure of the property
Official identification / birth certificate of the buyer and his spouse, in case of signing jointly, as well as the marriage certificate of the buyers in question
If a mortgage was paid, ask the issuing institution to deliver a credit release letter.
- Payment to the Notary:
Consider that the expenses of the notary´s fees are paid by whoever buys, but remember that resolving doubts does nor generate any costsince the advice and consultancy is offered free of charge, throughout the country
- Transfer of Property:
The transfer of property is an act of a formal nature where a person with property rights over a certain asset transfers these rights to another person. In Other words, as a result of the transfer of property the previous owner of the property ceases to be and now there is another person who has rights over the property
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