How do I get the best financing rate for my property?
Getting the best financing rate when buying a home is one of a person’s big financial goals. However, the value of this fee is composed of many items and varies according to the movements of the economy.
In addition, a borrower’s financial behavior can greatly influence the way a bank views it as a customer, making it impossible for them to have access to the best conditions available on the market.
In order for you to understand how you can get the best financing rate for your purchase, it is essential that you understand some basic concepts about the financial market.
Therefore, we publish this article. After reading this text, you will be able to outline your goals to prepare for real estate financing. Come on?
When to use real estate financing?
The most obvious scenario for someone to use real estate financing is when the person wants to buy a property, but does not have all the capital. However, there are cases where the buyer has the money, but does not want to commit all of his assets to the purchase.
There are still people who want to escape the rent. They already have a monthly expenditure on housing, but they would be happy to exchange the payment for this service for financing their own home.
What is “the best financing rate”?
The financing rate may vary from bank to bank. Logically, the customer wants to pay for the lowest fee, as this will represent a good savings for their pocket in the medium and long term.
As with any other type of business, the best way to get a price that suits your needs is by researching. Banks make a lot of information available on their websites, but the quickest way to gain access to information related to financing is by running a credit simulation.
The client will inform how much he earns, what the value of the property is, how many installments he will want to pay for the financing, etc. After providing this data, he will have access to the costs of the operation, finding out if he is facing the best possible financing rate.
It is also important to highlight that the prices of the real estate market influence these values. For example: a few years ago, the same property you want to buy today could have been much more expensive, requiring greater financing.
The drop in real estate prices represents an indirect opportunity to pay less for financing. Therefore, it is worthwhile for the buyer to do a good research to identify the good opportunities that exist in your city.
What is Total Effective Cost (CET)?
The interest rate is not the only factor that makes up the monthly installments of a real estate loan. Therefore, as important as looking for the best financing rate is to be aware of the contract’s CET.
The CET includes a series of ancillary costs that need to be paid for the client to have access to capital. Financing insurance, inflation readjustments, costs related to arrears, etc.
Therefore, more important than knowing the interest rate is to know the value of the CET. This is the item that the customer should consider when comparing banking institutions, since the bank that offers the lowest financing rate may have the most expensive CET in the market.
How to reduce the amount of the financing fee?
Using your FGTS
Knowing that the interest rate affects the value of the borrowed capital, the simplest way to reduce its impact is to give a good down payment when buying your property.
In this case, the customer can use his FGTS balance. For the purchase of properties that cost up to R $ 1.5 million and to be financed by the Housing Finance System (SFH), the use is permitted.
The buyer needs to meet certain requirements, such as working in the city where the property is located. This is important because the purpose of SFH is to help citizens buy their first property – and not to invest in the real estate market, for example.
In addition, you can add balance from different FGTS accounts, as long as the purchase is being made jointly.
Applying your money to buy the property
Another way to raise capital to enter the property is to sell objects and goods that you have. Do not underestimate small values, because when applied well, they can help you with the acquisition of your property.
Electronics you don’t use, appliances you don’t need, clothes in good condition: all of these can be sold and turned into cash.
It is still possible to sell your car and, with that, get a good capital for the purchase of a property – in addition to getting rid of debts, such as IPVA, auto insurance, fuel, parking etc.
Understanding what credit analysis is
Credit analysis is the process by which the bank will check details on your financial history, concluding whether the financing is at risk of not being paid.
In order for the customer to transmit a good image to the banking institution, it is important that he does not have active debts at the time of the credit analysis.
So, if you are in default, seek an agreement with your creditor, as this contributes to increasing your credit score – a score that helps companies define how risky it is to do business with a person.
In addition, provide all necessary documents for financing, including those of the seller and those of the property. In addition to streamlining the analysis process, this helps the bank to analyze these papers, finding out if you have the capacity to pay off the mortgage.
As we have seen, getting the best financing rate requires a little work on the part of the client, as he will have to do some research. A crucial tip at this stage is to look for companies that have extensive experience in this sector, as they offer the best rates and service.
This is the case with CrediPronto. We have already issued more than 30 thousand contracts, granting more than R $ 7 billion in credit. So, talk to us, as we can help you realize your dream of buying your home.