Financing property is a great option for realizing the dream of home ownership. With planned values, it is possible to acquire the good, leave the rent and guarantee equity. Before starting similar process, however, it is important to know some details of the option. After all, they will allow security throughout the installment payment period.
That’s why we’ve listed seven things you need to know about financing. Check out!
What is Property Financing?
Financing is a loan, possible in banks and specialized companies, where the consumer acquires all the necessary value for the purchase of his property, and then pays monthly installments until repaying the amount.
Property financing allows the purchase of the property in cash, with payment of monthly installments later.
Installment plans usually last up to 35, with duration varying according to the value of the asset and the installments. For these same reasons also vary the interest rate charged by the financial.
Up to 90% of the property value can be financed.
What are the requirements?
To purchase a property in installments, the client must be over 18 years and have fixed income. It also needs to have a “clean name” in the market, as its credit will be evaluated on the Credit Protection Service (SPC) and Centralization of Banking (Serasa) lists.
In addition to these, the bank also requests input value of the plan. Generally, the amount corresponds to 10% of the total cost of financing, and must be delivered upon adherence to the contract.
- Leave the rent
- Possibility to use your FGTS
- Immediate use of the property
- Accrual of benefits
- Bad choice of location
- The bank can receive up to three times the value of the property.
Step by step
In order to get credit, the interested consumer must first search among various financial institutions, as conditions and rates vary widely. Civil servants even have more advantageous opportunities in some institutions.
After this step, you need to do simulation. The websites of the banks themselves offer this possibility, which requires, for example, estimated value of installment and real estate, and monthly income.
When the simulation pleases, the user should attend a physical bank branch or company, with documents such as ID, CPF and proof of income and address. Personally, he will be able to request more details about his future plan, and show interest in it.
For proof of monthly income, the client may also offer proofs of the person who will enter the loan jointly. Considering that only 30% of a home’s monthly income can be committed to the values, the strategy ensures greater amount for credit consideration.
Soon, the creditor will analyze the credit. If approved, the customer will sign the contract and assume the responsibility for monthly payment of the property purchased.
The values of financing interest rates vary among companies, property value and repayment term. The values are set at the signing of the agreement and cannot be readjusted during the plan.
Is it possible to use FGTS
Employee Severance Fund (FGTS) resources are available after three years of contribution. They can be used for residential real estate financing when it is for property located in the region where the user lives and / or works.
The possibility of using the amounts is in the offer of entry of the plan, payment of late installments or even final payment of the amount due to the bank.
Spending goes beyond Financing
When buying the property, the new owner of the property must bear documentation of the location, which will prove who owns the property after the transaction. There are also expenses with Real Estate Transfer Tax (ITBI), charged by the city and corresponding to 2% of the property. The amounts may be included in the financing installments, but the option must be requested upon adhering to the plan.
In addition to spending on financing, homeowners must bear real estate taxes.
A construction also requires the annual payment of the Urban Property Tax (IPTU), and any costs with moving to the new space and renovations.
You Can Lose Property
When not paying their installments on time, the consumer is subject to the payment of fines and, for longer periods of default, loss of property. This is why planning finance over the years is so important.
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