One of the elements that buyers consider the most when investing in property is the price. What most people don’t know is that when buying a home there are a number of related expenses that should also be considered within their budget. Today we’d like to share some of the main expenses you should budget for when investing.
1. The appraisal
One of the initial expenses when buying a home is the appraisal. This is an estimation of the property’s real value carried out by a expert appraiser; this process will yield the home’s current market value. One of the main reasons why you should consider the appraisal is that, if you are going to apply for a mortgage loan, banking institutions may request this information to determine how much money to lend you. In some cases, it also determines the down payment amount that you will have to make on the property.
When you apply for a bank loan to buy a house, banks usually carry out certain research before approving your credit. They do it to corroborate your data, understand your background and credit score, and make sure that you are financially solvent. Some banking institutions charge for these research processes, so if you are going to take out a loan, you should budget for this expense and ask about your bank’s requirements.
3. Down payment
The down payment is usually determined as a percentage of the home’s total value. It is made by the buyer to show the seller their intention to invest in the property. Down payment percentages may vary by banking institution and loan type.
4. Notary and deed certification expenses
In Mexico, the escritura, or deed, is a document certified and signed by a notary public, which represents the title to an immovable property and which must be registered at the local Public Registry of Property where the property is located. This is an extremely important step for the buyer to be recognized as the owner of the home. Other expenses that may include notary fees are the mortgage loan, as well as the costs, duties and taxes stemming from the property’s purchase and sale.
Investing in SIMCA makes your life easier
Invest in one of our developments and never worry about a thing. When you purchase your property with SIMCA, you won’t have to worry about sales-related expenses, since we have our own legal department to help you with everything you need, especially with the deed certification and property registration processes.
The SIMCA customer service department is structured to help you through everything related to the sale, including our after-sales service. In addition, we offer SIMCA Owners Services (SOS), an online system devoted to answering all your questions about different processes. Our executives are always ready to take care of your needs.
Discover our residential developments, learn more about SIMCA, and invest with us.
You may be interested in: SIMCA’S Top Secrets or Why We Offer the Best Real Estate Options.