If you have any questions about how to buy a house with a loan from a bank, reading this article you will leave it. Here they will know how the so-called mortgage loans work, with which you can buy your home in installments.
What is a mortgage?
A mortgage loan is a personal loan with limited availability, that is, whose capital can only be used for a specific purpose. This purpose is none other than the acquisition of real estate, which in most cases, is a home.
The mortgage loan works as follows.
- The institution acquires the real estate of your interest, canceling the builder or owner, its corresponding price.
- That said, it is delivered to you in property, and you can immediately use it. But on the house a mortgage is established, that is, it appears as a real guarantee of payment for the credit granted. Then, even if you are the owner, in practice you will not be able to fully exercise your title until you release the mortgage.
- The bank establishes a schedule for payment of credit, in monthly and extraordinary installments, which you must comply fully and on time. These payments include both the remuneration you make of the capital used in the purchase, as well as the payment of interest and other administrative amounts generated by the credit.
- At the end of the credit period, if you have fully complied with the payment schedule, the financial institution will proceed to release the mortgage, and you can then fully exercise ownership over the home.
Tips to buy a house with a bank loan
- Housing, like everything else, suffers depreciation over the years, which decreases its remaining useful life. Financial institutions will ensure that this remainder is greater than the term of the mortgage loan granted. Therefore, they are much more likely to grant you a loan for a newly built home, than another with more than two decades of construction.
- Make sure that the home of your interest has the basic services: water (aqueducts and sewers), electricity and paved roads. The lack of at least one of them will cause the credit application to be denied.
- The mortgage loan only covers up to 90% of the value of the home, so you must look for the remaining 10%. Then, it is important that you establish a savings plan, which in addition to achieving that sum, allows you to create good bank references.