Buying an apartment is a real estate investment that can start at several tens of thousands of USD and extend up to several hundred thousand USD. Succeeding with this investment requires you to prepare your budget and choose the right financing.
Prepare the purchase of an apartment
Whether in the context of a first home ownership or simply as part of a rental investment, the purchase of an apartment is a real estate project that is preparing. The first step is simple, define its ability to borrow and repay a monthly loan. Indeed, the maximum debt authorized being 33%, it is necessary to be able to support a monthly loan of real estate with the current situation, that is to say taking into account expenses and incomes.
The assessment of borrowing capacity quickly provides an estimate of the amount of the apartment that can be afforded. The bank will simply study the bank accounts of the borrower taking into account his income (pay slips) and his expenses, including outstanding credits. If no loan is in repayment, the capacity to borrow will be even greater for the apartment.
What credit to buy an apartment?
There are two credits that can be requested in connection with an apartment purchase, the mortgage loan and the affected consumer loan. That is to say that in the context of an apartment purchase whose price is less than 75000 USD, the bank will offer a loan conso affected simply because the mortgage is only feasible if the amount of the purchase exceeds 75,000 USD. This loan will take into account the amount of the apartment but also fees and the passage to the notary.
If the amount is actually higher than the 75000 USD of the loan conso, then it will be a mortgage, associated with a guarantee by mortgage or suretyship. The advantage of the mortgage is that it can also include an amount reserved for the renovation of the apartment, it is often useful when you buy to renovate. Thus, we take advantage of a single rate and a single monthly payment to finance both the acquisition and the work, it must however provide the supporting documents, namely a quote or a purchase order.
Get a real estate loan estimate for the apartment
After defining the ability to borrow, it is possible to move to the simulation stage, it is simply the filing of a mortgage application in a simulator that allows to compare the offers of banks on the market. The interest of this simulation is to obtain financing proposals, to compare the rates and to be able to direct its project towards the banking institution proposing the best conditions.
Each bank has its own criteria, some are specialized in mortgage guarantees, others will be well placed on short term mortgages while others will have better conditions for loans with works, it is for this reason it is advisable to use a simulator to find the right financial partner.