One of the biggest expenses that a person makes throughout his life is the acquisition of the property that will serve as his residence. Very few pockets can afford to pay such a high amount without resorting to financing systems to buy a home.
To get enough money to be able to pay the price of a house , financial products are used that are usually offered by banks. These are the usual alternatives that are usually found:
Mortgage. It is the form of financing to buy a more used and well-known home. They are usually contracted with banks and consist of a loan that has the property itself as collateral. In other words, in the event of non-compliance with payments, the creditor (the bank) can foreclose on the home to collect the debt.
In most cases they usually cover up to 80% of the value of the home , so it is always advisable to have money saved to pay for that part. If not, you will have to resort to a personal loan.
To obtain a mortgage, it is usually requested to demonstrate the economic stability of the buyer. For this reason, for this method of financing to buy a home, a lot of paperwork is usually needed and figures such as the guarantee are used to offer even more guarantee.
Bridge mortgage. It is a specialty of the previous modality. It is used for cases in which the buyer already has a mortgage for having previously acquired a house that he wants to sell to acquire a new one. It is a reunification of loans until the previous property is effectively transferred.
In that case, the old mortgage is completely canceled and the conditions of the new loan are modified. This financing system to buy a home can be done for a period of 6 months to 5 years .
Rent with option to buy. It is a system by which rent is paid for a home for a period of time, after which the tenant can choose to purchase it. The maximum term for this financing system to buy a home is 5 years as established in the Urban Leasing Law .
The tenant does not have to wait for that time to end to buy the home. For the payment of the property, the amounts that have been paid as monthly rent will be deducted. It is a more flexible system that allows people to enjoy a home and have options to save for their purchase.
In addition, it is not necessary to make a large initial outlay to acquire a house. For this reason it is one of the most interesting options.
Family financing. In many cases, it is people from the family who pay the money for the purchase of a house. In these cases, attention must be paid to whether this payment is made with the intention of being returned or not.
In the first case, it would be a loan between individuals that must be regulated by contract. In the second case, this financing system to buy a home would be a donation . This is really important to take into account since the corresponding tax should be paid.