Buying a home is an important decision in which doubts always arise. Before embarking on to buy a flat or a house we have to know the steps to be followed in the acquisition and the numerous procedures, you can help us better understand the buying and selling process. Before signing the contract we must be very sure that it is the best decision and that it is the house we were looking for.
We are going to tell you the basic steps when buying a home.
If we are going to invest our savings and we also have to incur a debt, we must be very sure that we can pay for our home in the next few years without problem. We have to know our borrowing capacity and try not to exceed 35% of our monthly net income and other debts that we have (eg other loans). We should also know that banks grant, as a general rule, between 70% and 80% on the lower of the following amounts: (i) appraisal value or (ii) sale, although sometimes it may reach a higher concession percentage .
Expenses to buy a home
Although the expenses can change according to each autonomous community, we have to count on the appraisal, or the insurances, and in some occasions commission of opening, study. It is also necessary to take into account the expenses of the sale (which the debtor always assumes) for new or used housing such as the Tax of documented legal acts or property transfers or VAT.
The usual thing is to ask for a bank loan in which a number of payments is established for a certain time.
The price calculation
The value of a house is officially determined by a report called appraisal, but we can get an idea if we look at the price per square meter in our province. Official appraisals are carried out by entities accredited by the Bank of Spain that issue quarterly reports of the value per square meter of a property by zones. It may also be interesting to know the prices of housing in the specific neighborhood. It is always good to visit the area where our future house will be before to check the environment and services offered by the area. .
At the time of signing the sale of the house we will need the seller to provide documents such as the Deed, the Cadastral certificate, the energy efficiency certificate. It is also important to know the burdens that the house may have that are registered in the property registry, the debts to the community (by means of a certificate from the community of owners), if the urban contribution (last IBI receipt) has been paid or possible urban procedures of expropriation or reparcelación.
The signature of the sale and purchase
Finally, the day before the notary formally finalizes the sale, all these documents must be submitted. In this act will be present the notary, the selling party, the buyer, the representative of the bank and, where appropriate, that of an agency.
As a buyer you should review all documents before signing, make a copy of the deeds and deliver to the seller the agreed amount according to the payment method you have agreed with the bank.
You will have previously met with the bank to inform you before signing all the mortgage details. The seller must provide all the documents requested, sign the sale and deliver the keys of the house to the buyer.
All these steps are essential when buying our new home and knowing them will help us to face them. Although it is a long and somewhat complex process, with the help of the bank and a manager, it will allow us to make the sale of our house.