If you are about to face the real estate market for the first time and you don’t know where to start, this time Yarmoloy Group experts present a guide to the 10 things you need to know before launching yourself in search of your ideal home.
1. Get advice from a professional so you know how to choose a mortgage loan that suits your needs. The process to buy real estate is usually long, but you can save yourself a lot of time and avoid unpleasant surprises if before starting the search for your ideal home you start by reviewing the financing part, this will allow you to know in advance what amount your credit can reach and so you can focus your search on properties that are within your budget. If you start the process by first choosing a house and then looking for financing, you may be surprised that you do not reach the amount necessary to buy or even find out that you are not subject to credit.
2. Determine what your budget is to buy a house. Specialists recommend that the payment of all your debts never exceed 35% of your income, this includes not only the mortgage but also other loans or credit card payments. In addition, you must take into account all your monthly expenses and a percentage of savings for emergencies. By considering these factors, you will be able to determine how much you can really allocate towards your monthly house payment. In our blog, you will find more detailed advice on what percentage of your income your mortgage should represent.
3. Remember that a mortgage loan will not finance the total cost of the home, so you will need to have savings that will allow you to cover the down payment of approximately 20% of the value of the property; In addition, you must be prepared to make other payments such as the cost of the appraisal, notary expenses, taxes and even some reforms or adaptations to the home.
4. Beyond the initial payments and the monthly amount of the mortgage, you should consider that owning a property also implies assuming the costs of maintenance and repairs (which will be necessary over time), the property tax that you will pay year after year and even neighborhood fees if your house is in a private one.
5. Take time to review in detail the contract that you are going to sign to acquire your house. These types of documents (long, in fine print, and full of technicalities) are almost an invitation not to read them. But remember that you are about to sign a legal contract that implies heavy financial obligations for a long period, so you must be fully aware of what you are signing. If you have doubts about the terms of the contract, consult a professional and ask for any doubtful points to be clarified.
6. To avoid being a victim of fraud, it is very important to make sure that the home you want to buy is debt-free and that the person you are dealing with is the owner or has legal authorization to sell. You can find this out by going to the Public Registry of Property, a dependency that will give you a document detailing the legal situation of the property in question.
7. Before you decide to buy what appears to be your dream home, you should consider your long-term plans. Ask yourself how you see yourself in 10 years, what kind of job do you want to do, if you plan to get married and have children. By answering these types of questions you will have a clearer picture of the type of property you should be looking for. Keep in mind that the things you like today may not be the best idea when you reach a later age.
8. If you are thinking of buying a house that needs improvements or that, although new, does not have all the finishes, you must do serious calculations about what it will cost you to turn the plans you have in your mind into reality. Don’t make the mistake of only thinking about the cost of paint or kitchen or closets; You must also take into account labor costs, which can considerably increase the budget, causing the project to be half done or not to achieve the quality that you imagined.
9. Buy the house you know you can afford, not the one the bank thinks you can afford. If you have a stable job and a good income, it is possible that the bank will offer you a much higher mortgage loan than you had in mind, but before deciding to take full advantage of it, you must do a very honest analysis of your expenses; take into account not only your monthly payments, think about those expenses that are not periodic but that you will need to make throughout the years that your mortgage lasts; we are talking about things like changing cars, property maintenance, your children’s education and health. These factors could complicate your mortgage payments in the future.
10. A good tip is to use a real estate agent. Although many people prefer to avoid hiring a real estate agent to save the commission, the truth is that being advised by a professional has its advantages. A real estate agent will guide you through the buying process, find properties that fit your wish list and budget, help you negotiate the price, recommend the best mortgage credit options, and advise you to carry out all those cumbersome procedures that entail buying and selling.
Buying a home is a big decision, and while it can be a good financial investment, there’s a lot to consider before you take the plunge.

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