1. Real estate market information
Investing in a property is one of the best decisions we can make, it improves our quality of life and ensures our personal finances.
Sometimes we are guided by emotions and we end up buying a property that seems very nice, but in an area that in the long term will not generate capital gains.
This can happen because it is in an area that is not in constant investment, it is not a well-known area and does not have easy access to hospitals or schools that guarantee us a real opportunity.
2. Credit authorization letter
Before choosing the property that is to your liking you will need to meet the necessary points with the institution granting the credit you will use. This in case you are going to use a mortgage loan. Even when accessing the benefits of Infonavit or Fovissste, it is necessary to present this letter before your notary.
This is a guarantee for the person who sells you the property, since you are proving that you have the resources to carry out the transaction.
3. Verify the documentation of the house you are going to buy.
If the house is second hand, the first thing to do is to request the title of the property and make sure that the property is free of debts or is committed in another credit. For this, it is enough to go to the Public Registry of the Property to request a document that indicates the situation of the house before that institution.
4. Check if you will have the necessary financing
Before choosing a mortgage loan, it is necessary to know the value of the house you wish to purchase.
Evaluate the differences between a fixed-rate mortgage loan and an increasing-rate mortgage loan. Learn about their characteristics in Which type of mortgage loan to choose? and verify which is your best option before acquiring your loan.
Remember that the cost of a loan is more than just the interest, since it is necessary to calculate other expenses beyond the value of the house. More than the interest rate, evaluate the Total Annual Cost (CAT), an annual percentage indicator that adds some extra costs.
5. Calculate the down payment and other initial expenses
One of the tips for buying a house is how to make the best use of your down payment. The more savings you set aside for the down payment, the lower the financing and monthly payments will be.
The down payment is not the only initial payment; other expenses such as the appraisal and notary fees, among others, must also be added. Consider that not all states or municipalities ask for a commercial appraisal, and the bank appraisal is only for credit authorization.
Keep in mind that you should never give money as a down payment or deposit without a contract that formalizes the operation.
6. Notary and deed expenses
The notary will draw up a deed in which it will be stated that you will be the new owner of the house and that you are mortgaging it in favor of BBVA Mexico for the loan granted to you. The Notary must verify, among other things, that the person selling you is the owner and that the house is regularized.
The deed is the document drafted and authorized by the notary and is made up of the lien certificate and the proof of no debts. These documents represent most of the notary's costs and the rest are his notary fees plus VAT.
Finally, when buying a house there are two obligatory payments that you will have to cover as a buyer: the real estate acquisition tax, which is a percentage of the value of the house, and also the registration fees in the Public Registry of Property. Consider that some co-financing schemes with INFONAVIT or FOVISSSTE may contemplate the payment of part of these expenses. Remember that, in some cases, it is possible to incur Income Tax on Acquisition.
Documentation in deeds
According to the Council of the Colegio de Notarios del Distrito Federal, A.C., the following documents are required for the sale of a home:
1-. Marriage certificate In case of having acquired the property being married. When the buyer of the property acquires it being married under the regime of conjugal, legal or co-ownership partnership with his spouse, he must appear this one to the signature of all the documentation relative to the sale and purchase.
2-. Paid property tax and water bills.
4-. Receipts of light or telephone
5-. Lease contract(s) in case the property is leased.
*Request in the Notary's office several days before the counter deed, a breakdown of the possible expenses or payments at your charge, so that you know them and you are prepared to cover them. Likewise, make sure that your buyer is informed in a timely manner of those that will be paid by him.
Arrive half an hour in advance for any unforeseen event.
Participants in the transaction must identify themselves with a valid official photo ID.
Bring with you all the documents mentioned above.
Deliver to the notary all the documents requested.
Make payment to the seller of any outstanding balance of the agreed price by cashier's check or bank transfer, you can make this payment from your bank's app.