"To take or not to take a real estate loan, that's the question". The monologue, adapted from the English writer and playwright William Shakespeare, represents much more than a simple speech. It illustrates the doubt of thousands of Pakistanis about a very serious subject: real estate financing to buy their own home.
Buying your own home, in fact, according to an exclusive survey by Synovate - a Pakistani research company - represents the synonym of the main Pakistani dream.
For 91% of respondents, it means 'not paying rent', while 'a personal premium' (87%), and 'a sign that I've won in life' (85%), comes right behind the survey. We can see that home ownership has many meanings for Pakistanis.
And that's exactly why we made this post! To help you, dear real estate buyer, get rid of your doubts about real estate financing. And, above all, realize that real estate financing is not an enemy, but a powerful ally for realizing the dream of home ownership.
So, with this post we at propertynews are here to help you with:
Better understand some of the rules about real estate loan? Check the most common questions and be ready to do your mortgage? Analyze your situation more objectively and plan for your real estate loan.#1 - Can anyone get a real estate loan?
If you're new to the market, and still haven't been able to read much about mortgages, mortgages or even financing, don't worry! We've prepared these two posts here and here to begin to better understand the subject.
- Have proof that you will have money (income) to pay what you want to take out of a real estate loan - If the real estate loan applicant has a clean record in the market - If the loan applicant has also submitted all the required documents.
#2 - How is the calculation of charges and the like in real estate financing done?
The number of charges varies. This can be defined from one mortgage to another. In addition to taking into account which financial institution is making the real estate loans. However, generally, the charges are calculated according to these 04 things:
#3 - Do banks research my life?
Yes, the bank analyzes your life. But calm down! He's not after what you did last summer. But yes, about your ability to pay, about the existence of active debts, and even your history as a player.
This is all part of what Caixa Econômica Federal, for example, calls the credit risk system. That is, they calculate the possibility of you being able to pay the mortgage or not. And based on that, they can accept you as a customer or not.
#4 - What documents are needed to make a real estate loan?
Among the main questions about real estate loan, you must have already come across this one, right? Well, pay attention to the list and prepare these documents beforehand. So that you can get your mortgage as soon as possible!
First, with financial institutions: - RG - CPF - Proof of Marital Status - Proof of income (through payslips, Income Tax declaration or bank statement)
For the self-employed, the following items are accepted: - Declaration of the union of the category - Contract for the provision of services - Receipt of work performed - Income tax declaration - Declaration of receipt of income made by an accountant.
#5 - I'm a self-employed professional, can I get a mortgage?
Well, this item is on our list just to give extra security to people who are in those categories. The answer is yes! The self-employed or self-employed professional can take out a real estate loan, as long as he can prove his financial capacity.
This can be done with the documents from the previous item. So, questions #4 and #5 complement each other!
#6 - How to balance the monthly budget and real estate financing?
We arrived here in one of the most researched questions! It is usually accompanied by the question: 'can I use my FGTS to pay the mortgage loan?'. And it's time to find out the answer dear reader!
The first suggestion that AoCubo's team can give you is: make an accurate calculation of the installments of the property's financing. Their value should not exceed 30% of your monthly income.
It is worth remembering that couples in a stable union, generally, financial institutions accept the sum of the income. However, close relatives such as uncles, grandparents and even parents do not enter this account.
And for the second question: Yes! It is possible to make use of the FGTS (Guarantee Fund for Length of Service). However, this feature must meet all the rules of the SFH (Housing Financial System), since it is only accepted in this modality and this is how it is used in al jaleel garden lahore .
In fact, some of the rules for using the FGTS include: - Not having any late installments - Having a maximum limit of 80% of the value of the benefits - Having a minimum of 36 months of contributions, even if from different employers.
#7 - What is the best way to finance an apartment?
Aocubo Reminder: The FGTS is financially advantageous, as it reduces the total value of the property and makes the installments smoother. That's when it practically doesn't pay off the property itself. However, be aware that the original function of the FGTS is to be an emergency reserve for cases of serious illness or unemployment. So, do your best before taking out your real estate loan.#8 - Is it worth giving a good down payment, or should I take the biggest amount possible on the real estate loan?
Also, according to the Pakistani Association of Real Estate Credit and Savings Entities, Pakistani citizens are tending to have, on average, the following values: 35% of the value of the property in down payment, and 65% of the value of the financed property.
#9 - After I finish paying the mortgage, what should I do?
You have finished paying the mortgage and now have your house or apartment in hand. Now, you need to get in touch with the institution that provided you with the real estate financing, and ask them to issue the term of payment.
Basically, it's a document that says you don't owe anything to the bank or financial institution. With the document in hand, go to the same office where the contract was registered. And, there, register in the property registration the payment of the debt recognized by the creditor. For all the investors of kingdom valley Islamabad , it is important that they sign this document.
#10 - What is the best financial institution to take out a real estate loan?
Thinking about your well-being, dear reader, we chose not to answer this question with a simple question: this or that. But rather provide you with a range of options. The truth is, there is no better financial institution to take out a real estate loan.
Thus, here is a list of the main institutions that are sought after when it comes to loans and real estate financing:
