Thinking of your first home? If you are young, surely you have already spent time studying what is better, whether to buy or rent. If finally, you have decided to buy your first house, we’ll share with you in this article some Mortgage options for buying 1st home that we hope will be very useful to help me make the right decision, specially if you are under 35 years old and you are facing this important step in your life.
A mortgage, according to the dictionary definition, is a loan whose payment is guaranteed by the value of a property. That is to say, it is a credit but guaranteed by the house that is going to be bought.
Although we have already explained in other posts about the main things you should know about mortgages, it is a good time to review some important suggestions for a mortgage:
Although we have talked about the general characteristics of mortgages, most banks adapt the conditions of their mortgage loans to the profile of young people, offering a product adapted to their needs.
Some of the characteristics of mortgages for young people are longer mortgage terms, which can reach 35 years, or a higher level of financing, which can exceed the usual 80%.
With the new Mortgage Law, the commissions and expenses passed on must respond to services actually provided or to expenses incurred and if there is an opening commission, it will accrue only once and will include all the expenses of studying, processing or granting the loan or other similar caused by the granting of the loan.
The legislation also marks who (bank or buyer) pays what expenses:
Every bank will offer you a simulator to find out the costs of buying and selling variable mortgages. Very useful.