Buying your first home is one of the most challenging decisions to make. It requires time, a thorough analysis of your situation and an adequate understanding of the entire process.
Buying your first home: initial decisions
Before starting the search for that first home, it is essential to ask yourself some fundamental questions:
Budget
The starting point when buying a first home is the financial situation. With two essential aspects:
• Savings: if you ask for a mortgage, you should know that banks only finance 80% of the total property value. It means that you need to have a cushion of 20% to cover that part plus another 10% minimum to meet the first expenses (taxes, notary, Property Registry, etc.).
• Income: the general recommendation is that mortgage payments do not exceed 35% of net income.
These issues allow you to adjust the budget available to buy and to face the amortization of the loan.
Type of home
The budget determines the possibilities of choice. But you have to go a little further. Analyzing the real needs and preferences in housing and location will speed up the search. It is always a good idea to leave some margin for this search, that is, to be flexible with some aspects. That will always be a plus.
Search and selection
Real estate portals such as Spainhouses.net are an optimal way to start the search. From there, you will have to select options, considering different elements:
• Location: services and infrastructure in the area.
• Condition of the property: if you choose a property to renovate, you will have to evaluate the cost of the work.
• Property features: issues such as the interior layout, orientation or height, whether there are common areas, etc.
Procedures before buying your first home
Once you have made the decision, there are a few steps to take:
Documentation
It is fundamental to check that the property is free of encumbrances and review the documentation regarding issues such as payment of the IBI or community fees. Also, you shall verify it has an energy certificate and a certificate of habitability.
Reservation
It is usually done with a deposit contract that establishes the conditions of the sale. Generally, the buyer will deposit around 10% of the home price as a guarantee.
Searching for financing
Negotiating with banks takes time, so it is best to do so when you already have a clear idea of the type of property you want. For those under 35 years, we recommend checking the possibilities of taking out a youth mortgage with better financing conditions.
Final steps to buy your first home
The process ends by signing the deeds before a notary, both for the mortgage loan if there is one. It will then be when the taxes from the purchase and registration in the Property Registry must get paid.
If you are looking for your first home, remember that the broadest range of housing awaits you at Spainhouses.net. Take the first steps now to find your first home.