12 Tips for buying a property

12 consejo para comprar una propiedad 12 tips for buying a home

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Are you considering buying a property? These 12 tips for buying a home will help you make better decisions.

1.Analyze your current situation and make sure you are ready to buy a property. Determine how long you will be staying in the area, your current job, family size, etc. Do you have plans to grow/downsize your family? Will you be working in that area for a long time?  Make sure it makes sense to buy now.

  1. Determine your debt capacity and establish what type of credit and mortgage options are available. Keep in mind there are two stages for the payment. The first part is the initial down payment which is between 10% to 30% of the total value of the property. This will be paid in one lump sum. The second part is the remaining 70%-90% which will be paid monthly for “x” number of years. Do you have enough saved up for the down payment? What is your monthly payment capacity?  Any bank can pre-qualify your debt capacity.
  1. Check interest rates: It is very important before signing a loan to take into account the interest rates offered by each of the financial entities. Also, take into consideration the duration of your credit: the longer the credit, more interest will be paid.
  1. Consider additional expenses when buying a property. Find out how much are the closing costs, legal fees, moving costs, escrow, etc.
  1. Choose a location that will work for you. Check out access roads, zoning, proximity to shopping centers, schools, etc. Most buyers are looking for convenient services nearby.
  1. When evaluating the property, have a home inspection to make sure everything is in good order. Inquire about the construction company and the architect and verify their credentials.
  1. Find out about the builder and/or developer, their past projects and their reputation. Make sure they have a solid trajectory. Verify that the construction permits are in order.
  1. Read any documentation carefully before signing. We suggest you hire a lawyer to protect your best interest.
  1. Save all advertising and documentation received related to the home you are considering to purchase. This is relevant because it constitutes a guarantee against eventual breaches of contract by the developer once the property is delivered. For example, it has happened that in some condominiums the promised common areas are not delivered or they are delivered incomplete.
  1. Document the property you are buying with photographs, in order to have a backup against any incident.
  2. A few days before closing the deal, request permission to visit the property for a final inspection and walk through. Often times, when furniture is moved, one realizes that the owners were covering up some defect. It is much easier to ask for a discount, fix the problem or negotiate a better price before closing the deal.
  3. Before you purchase a property, find out how much are the property taxes, services, and maintenance fee. This will give you a better idea of ​​how much your monthly and yearly expenses will be.