Taking a mortgage loan is not “coconut straw.” It is to enter into an agreement that involves a long period of time, and if it is not planned properly, it can become a mess. That is why in Nexxi I want to propose some guidelines for you to plan.
Understanding the mortgage loan
The mortgage loan is one of the main products offered by banks. In fact, according to the Credit Statistics of the Superintendency of Banks , in terms of amount it represents 21% of money lent as of December 2017. And the rationale for this debt instrument is housing. That is, when you want to buy your “ranch”.
It has three main characteristics:
- Long term (15 to 30 years)
- Use the same home as a guarantee
- The rate tends to be stable over time.
In other words, it is not something now for now; implies that you are going to compromise “your future”; the bank assumes the same housing as a risk collection and you should not have outbursts in the monthly installment; since there are no sudden changes frequently.
How to plan my mortgage loan?
Starting from the fact that to assume a mortgage loan is to enter the “big leagues” of personal loans, I want to offer you some guidelines so that you plan this step and it is not uphill for you to take it.
Take your time
No hurry, take your time. One of the principles by which I manage to make an important purchase decision is the following: “Offers are repeated, money is not”.
This is one of the few almost absolute truths in the market. There will always be a good offer; That apartment you saw that you liked is not the only one there; Believe me there are many other offers that you can access. Therefore, do not despair. For money matters it is better to make coldly calculated decisions, to ardently out of control.
Evaluate your financial capabilities
Take pencil and paper or an electronic spreadsheet and, after having what it would imply in terms of loan amount, installment, rate, and time; Analyze how this is reflected in your monthly cash flow.
That is, stage a budget with and without the fee, so you can see how much it varies. If the variation is very pronounced and does not leave you a margin, it is probably not the right time to acquire a home. So you must be very critical of the result. Remember that mortgages an important part of your future.
Each weight counts
Finally, each weight counts. Save as much as you can, and don’t waste your money on things that don’t contribute to you. Focus on what adds value to your finances.
Keep in mind that you will have a commitment of several years; therefore, you must have an emergency fund in a savings account or a financial certificate that covers several months (3-6 months). Therefore, focus on coining each weight.