4 Tips On How to Finance Your First Home

The purchase of the first home is one of the most important decisions in a person’s life, so it requires a lot of reflection and analysis. Although, one of the most important steps is to know the details of the house, such as the size, the common areas, the recreational spaces, as well as the area where it is located, the main problem that arises, in the vast majority of cases, is its financing.

1. Request a loan from a financial institution

This is the most recognized financing mechanism used by those who choose to buy a home for the first time. You can get a loan from any of the many providers in the financial market, among which we can mention banks, financial companies, first home financing options and even cooperatives, but please keep in mind that, despite the different entities that offer mortgage loans, certain details must be taken into account.

For example, with regard to financial companies and cooperatives, mortgage loan rates are higher than those of a bank, the latter being the ones that offer attractive rates of up to 9.85%, according to the Superintendence of Banking and Insurance. However, the former is much more flexible than banks in terms of credit approval.

For this reason, you must take into account what you are looking to pay and the time in which you want to acquire the home to opt for a mortgage loan.

2. Submit a letter of approval from the financial institution to the real estate company from which you want to acquire a property

Once it is clear with which bank or financial entity the mortgage loan is going to be acquired, we’d recommend requesting an approval letter from it for the maximum credit that can be approved, within the period that you wish to approve it. This will allow you to have an idea of ​​​​various things, such as the monthly fee that you will pay. Likewise, clients who arrive with a managed approval letter obtain better conditions with the real estate company to which they apply and facilitate the search for their house since they already know exactly what’s the budget for the property.

3. Consider alternative financing options

In addition to traditional credit, there are other options that will allow you to buy your home with very specific conditions. So, it’s highly recommendable to do good research.

4. Be clear about your personal financial reality

Although it has been recommended that those interested in acquiring a property investigate and inform themselves about the credit conditions, qualification requirements and other details that will allow them to access a mortgage loan, the most important thing is that you clearly know your financial situation. With this in mind, you can choose an International Financial Institution that offers you conditions adapted to your needs and, in a better case, understands your financial reality.