Many people struggle between making great efforts to save until they buy their first home or apply for a mortgage loan that finances a high percentage of their purchase. Actually, both options are necessary; because every loan to buy housing requires a previous fund from the applicant that allows it to cover expenses such as paperwork, fees and other initial services.
When buying homes under construction or new, you can take advantage of the period of feasibility approval or pre-sale; in order to make some of these payments by installments that can be canceled until the moment of delivery of the property. While when it comes to homes in use, it is not feasible to cancel fees; The mortgage loan must cover a large part of the total value.
Savings prior to applying for the mortgage loan will always be necessary; Since the greater the amount of money that can be collected to cancel the initial fee, there are more possibilities to cancel more easily and with comfortable fees. When it is necessary to resort to a loan where most of the real estate expenses are included; Sure this will be more expensive and difficult to cancel, since it can generate high fees.
The two sides of the coin
It can be said that savings and mortgage loans are complementary if it is considered viable that saving is easier to apply for a loan; In addition to greater savings, better credit conditions are achieved. Another option is the purchase of mortgage debt to cover monthly expenses while paying off the loan.
At the same time, a savings account is always an excellent credit guarantee that facilitates the pre-approval of the loan; as long as you have an important record of responsibility with your administration. In any case, saving is wise and always avoids over-indebtedness; since you can count on liquidity to cover certain expenses that require availability when processing a loan.
The profitability of requesting a loan
It is conditioned by the way it is carried out and the moment in which it is decided to apply; it is favorable to study the requirements demanded by the promoters; in order to make requests when you have certain savings that allow you to make payments with order and planning.