We suggest how to buy a property in a few steps. What you should know, what to look for and where to start.
Creditworthiness – it is important to go to the bank or a good credit expert at the very beginning of the road to your own property to estimate your maximum creditworthiness based on your income. Establishing creditworthiness at such an early stage will help to avoid disappointment when we find the dream property and the bank refuses to credit us due to insufficient capacity.
It should also be remembered that each bank calculates creditworthiness differently depending on the form of employment. Working on a commission contract, for a specific task, running a business in the form of a tax card, a lump sum you can also apply for a loan.
When estimating creditworthiness, we must pre-determine the amount of own contribution that we will have at the time of purchase. The minimum own contribution that we should have, i.e. 20% of the value of the purchase price of the property. However, some banks allow you to apply for a loan with a 10% own contribution. It should also be remembered that own contribution can be made in various forms.
Real estate – once we know the maximum capacity, we start to look for real estate. We can do it with the help of a real estate agency or by searching ads by ourselves. It is very important to carefully analyze the legal status of the property and the land and mortgage register (in particular sections III and IV).
Secondary market / developer status
At this point, we often face the big challenge of estimating the value of renovation / finishing. We must remember that when applying for a mortgage we can also obtain additional funds that we will spend on renovation / finishing.
Credit offer – at the moment when we already have the property selected, proceed to the next selection, i.e. the credit offer. We can also do it in two ways: go to the banks yourself to find out the offers and choose the right solution (this is a fairly time-consuming process, we need to spend about 1.5 hours to visit one bank), or go to a credit expert who will present offers and help you choose the right one, tailored to your needs and expectations (high time savings, during one visit 1.5 hours, you can learn about the offers of all banks, calculate your capacity and discuss the loan process).
Preliminary / reservation agreement and loan applications – the next stage when we chose the offer is signing the preliminary / reservation agreement with the seller and completing all required documents for the loan and then signing the loan applications and submitting documents to the bank / banks (alone or with the support of a credit expert) ). It is important to remember about the valuation of the property, we can do it in two ways, order through the bank or go to a property appraiser on the bank list who will independently make such a valuation for us.
When the bank approves the loan application and we meet all the conditions, we sign the loan agreement. An important element is to carefully and thoroughly read the provisions in the loan agreement and all the costs we incur. If there are any doubts, they should be clarified before signing the contract.
Notarial deed and payment of mortgage – after signing the loan agreement at the bank, we go to the notary public to sign the act, which we immediately submit to the bank, based on which the bank pays funds from the granted loan to the seller’s account.